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January 2008

FlipFlippen.jpg

 

When Saudi Basic Industries Corporation (SABIC), one of the world's leading manufacturers of chemicals, fertilizers, plastics, and metals, wanted to polish its executives' leadership skills, Flip Flippen, the country's top business coach, went to Saudi Arabia and spoke to about 500 of SABIC's executives. His company, the Flippen Group, has helped top professionals at organizations, ranging from ITT to NASCAR, to break free of behaviors that can hinder their performance.

 

Trained as a psychotherapist, Flippen has put his constraint-busting strategy  into a book called The Flip Side: Break Free of the Behaviors that Hold You  Back. This book has made the both the New York Times' and USA  Today's list of best sellers. Flippen's own company has received several  awards for being one of the best places to work in Texas.

 

Recently, Enterpriseleadership.org sat down with Flippen to find out how even successful C-level executives, including CIOs, can unlearn behaviors that have hampered their careers or can keep them from moving further up the corporate ladder. Here's what he had to say:

 

EL: Can you give examples of personal constraints that become  organizational constraints?

 

FF: We see often in corporate America a character we call "the bulldozer." This person constantly runs over others, and thus becomes difficult to deal with. The bulldozer doesn't collaborate very well. If a bulldozer calls a meeting, it's to ramrod his or her agenda only by wasting everyone's time. This behavior handicaps everyone, and kills the creativity. Being a bulldozer doesn't hurt the individual who has that personal constraint as much as it does the people around them.

 

We worked with one corporate executive who said that being a bulldozer had already worked for him. I replied, "Then why do you want to change?" He said that his company's executive turnover rate had steadily increased, and that people were leaving for better jobs. He realized that he wasn't growing executives, but causing top talent to find more hospitable pastures.

 

EL: What's the first thing you tell people about personal  constraints?

 

FF: We assure people that we all have them, and that they play themselves out in every area of our lives. Many personal constraints often become professional constraints.

 

EL: How does one's personality factor into personal  constraints?

 

FF: We all come with fixed personalities. Our group is more interested in behavioral constraints than an individual's personality. We look at how an individual's behaviors affect them, positively and negatively. For example, we worked with one executive whose behavioral constraints turned him into a "volcano." He constantly blows up when things don't go his way. Unlike the bulldozer, the volcano might empower people and delegate well. If he's hell bent on pushing his agenda, through, he will probably blow up when things don't go his way.

 

We worked with an executive of a $350 million company who had a habit of throwing platters of food at the wall. This executive used to take pleasure in telling everyone in his staff that they'd better either perform or leave. I asked him flat out, "If you think you're such an effective leader, why do you have to act like a child having a temper tantrum in order to get your staff's attention?"

 

EL: If a lot of successful people have some life-long behavioral constraints, how have they managed to be professionally successful?

 

FF: The constraint that helped them to get ahead might now be the constraint that will hold them back from going any further. The volcano I spoke about wanted to get a position at the corporate headquarters of his global company. The company president asked me to help him become a better leader, but like a lot of people, the volcano denied that he had a behavioral constant. I asked him to pick up his cell phone and call his wife. He replied that he was separated. I then asked him to call one of his children. He said he didn't know how to reach them. Then, he lost his composure and remarked, "I made $3 million last year, and I've destroyed relationships with the people I care the most about."  I'm glad to report that he is now a group president and works out of the corporate office.

 

EL: These days many executives aren't staying in one position for any  more than three or four years. Why is that?

 

FF: Today, we have systems constraints and personal constraints. Many companies, such as private equity firms, expect instant results: we aren't patient anymore. Look at what we're doing to General Petraeus in Iraq: We tell him he has six months to get the war in shape. That's not realistic.

 

Pressures like this don't work and will never work. They cause people to act out in ways that aren't good for the people around them. It takes considerable courage to go for a top-level position and to tell people something they didn't expect to hear, such as, "It's going to take five years to turn this thing around. If your expectations are different from that, then I'm not the person for the job." In contrast, a lot of people say all the right things to get the job. They think they can wave a wand and make it all work. It usually doesn't.

 

EL: What challenges do women in C-level positions face?

 

FF: Based on the statistical behavioral research we've done on C-level executives, we've seen female executives who psychologically take on masculine characteristics in order to compete with their male counterparts. As a group, women tend to be better listeners, better team builders, and more compassionate than their male counterparts. For example, women will embrace each other in a social setting, but not in the workplace, to convey, warmth for a job well done.

 

We work with a lot of women who see themselves compromised in how they interact in the corporate world. They think they can move through the organization by hiring and firing by will.

My company has a female CEO, and I'd like to see more women running large companies for many reasons. They are better at multitasking, at forming alliances and relationships, and at devising strategies. Men rely more on strength and power; women, more on relationships and collegiality.

 

EL: Some companies are using formal metrics, such as the Balanced  Scorecard, to evaluate employee performance. Is that fair?

 

FF: It's a measure. It's not a question whether it's fair or not; it's a question whether it's an accurate measure. We use very sophisticated metrics in all of our work, especially in identifying constraints.

 

We do a lot of work to help people boil down what they do into a one-page strategic plan, which lists their priorities and goals for specific time periods.

 

EL: Have you come up with your own metric test?

 

FF: We use the Flippen profile, which is a Level C evaluation instrument. There are only three of those in the psychological world. It's a behavioral tool we use to identify personal constraints and to help people build plans to break through those constraints.

 

EL: Your company received a "Best Place to Work in Texas" award from the Texas Business Council and Texas Monthly magazine. What are you doing to earn this distinction?

 

FF: My primary responsibility is to my staff, which is my first-line customer. My job is to see that they engage in meaningful work and get rewarded appropriately with words, gestures, and financial compensation. When they go home at night, I want their kids to be proud of them.

 

EL: What's been your experience working with IT  professionals?

 

FF: The IT executives we've worked with tend to be what we call "ostriches." Although they're very bright, they like to avoid conflict and oftentimes they have low self confidence. Rather than

speak up about what they know, they assume more of a backstage position.

 

IT today needs to be front and center always. When you have low self-confidence as a constraint, the entire organization suffers from it. Your constraint actually affects the entire organization.

We also see a lot of IT people who like to move at high speed. Of course, that poses a problem because not every IT implementation has something to do with business performance or outcome. That's why some corporations have chosen to put a business executive at the helm of IT rather than a tried-and-true IT career professional. The business professional provides a broader global view of how IT fits into the corporate structure. It's one thing to know IT; it's another thing to be able to turn IT into a value-added service.

 

EL: What does it take for someone to change their behavioral  constraints?

 

FF: We've had some people who just didn't get it and some who got it, but couldn't do it. That's why I focus on behavioral change. There are some things that are easy to change, and some things that are more difficult. I can change the way you think about all kinds of things, but it's going to take some time. I need to first find out what you currently think, why you think it, how you started thinking it, how that worked and didn't work for you, and how to conceptualize so that your thinking will work for you. It is a long, drawn out process.

 

For example, if you exhibit what we call the "marshmallow" behavioral constant, then you want to say "yes" to everyone in order to prove your competence. You haven't learned how to draw boundaries or to say "no." Once you've have acknowledged this constraint, you can begin to learn effective techniques for dealing with it. I'd suggest that you end each meeting by talking about the three W's -- who, what, and when. You need to find out who is doing what, and by when. You need to have them declare who is accountable. When someone sticks his or her head in your door and asks for a minute of your time, you might say something like, "I'd be glad to give you a minute, but I can't do it now. Let's schedule something for later in the week so we can have time to focus on it."

 

EL: Can you give me an example of an executive who dramatically  changed a behavioral constraint?

 

FF: Let me tell you about Steve Gaffney, who was president of the U.S. Systems Division of ITT. He wasn't a good listener, but he apologized to his team for not having been a good listener. It was a powerful, defining moment. He told them, "The next time I cut one of you off in a presentation, I expect you to tell me. I promise you there will be no repercussions." His team did just that, and he spent a week apologizing. He doesn't use that behavior today.

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Elizabeth M. Ferrarini is a technology and  business free-lance writer from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

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In 2002, Michael Davidson, the chief information officer at Apotex, Canada's largest pharmaceutical company, was done with wasting time and money trying to back up one-half terabyte of data residing on dozens of servers with different operating systems. Instead, he decided to go with the emerging trend of disk-to-disk backup. Davidson put in two storage area networks (SANs) and licensed software from a managed back-up service. The two SANs backed up the servers across the company's three campuses, providing better protection than ever before and eliminating the $250,000 yearly cost of tape media.

To build growth within the overall business at the privately held Apotex, Davidson practices the philosophy of researching innovative practices that best fit with the company, and buying solutions that complement those practices. Recently, Enterpriseleadership.org sat done with Davidson to discuss the way he selects products, the strategic planning and governance model at Apotex, and some of the key best practices and products he has in place. Here's what he had to say.

EL: You've had the IT Infrastructure Library in place at Apotex since 2002. What components of it have you carried out?

MD: Right now, we have change management, configuration management, and we're moving ahead with problem management and release management. We've had a service desk for more than 10 years. We gave the service desk an ITIL framework when we first migrated to ITIL. We also use the ITIL framework for service level agreements.

EL: Which service support ITIL component has helped you the most?

MD: Change management has had the biggest effect on us by reducing the number of incidences that have actually occurred. We've also been very careful about the changes we've made. To this end, we've been able to show better cost effectiveness and cost reductions by going in this direction.

Today, a lot of IT shops still haven't looked at ITIL or are just starting to put it in place. When Deloitte, the auditing firm that audits our IT structure frequently, looked at us two years ago, it said not too many companies had actually put in a change management process, let alone try to hook it to configuration management. It was an interesting part of Deloitte's financial audit.

EL: What lessons did you learn about going with configuration management?

MD: We have the federated model for configuration management database. It does reasonably well for us. We had configuration management centralized at one point, but we quickly realized that as you get more and more assets in your configuration management database, you need to roll some of those assets into other federated databases. Otherwise, you'll run into some performance problems.

EL: What lessons have you learned about deploying ITIL?

MD: You can't fix something so that it works effectively and efficiently unless you know what you're doing, what you're changing, and what effect the change is going to have. That's the reason for ITIL.

EL: What new things are you doing in storage?

MD: We have room for a couple of hundred terabytes. The service we use migrated the software to other operating systems, and we've been able to include our UNIX backups. It's interesting to see just how many people are now going to near line disk storage for backups instead of putting them on tape.

Information lifecycle management is one of the storage programs we're running right now. We're spending a lot of time on archival data.

EL: You're an early adopter of many products. How do you select them so you won't get burned?

MD: We have people who build a few small things. We do, however, primarily buy software as opposed to building systems, and we do a lot of internal research before we make any decisions. We look at the longevity of the vendor and whether we think that it can meet our requirements. We also looked at where the vendor is going to fit within our plan during the next three, to five years. Is the vendor a good acquisition candidate? We take all of these things into account during our evaluation process.

EL: How do you work with executive management to make technology decisions?

MD: I chair a steering committee comprised of senior executives. Each month, we review our strategic plans and vision. We also get input from our program management system. We have projects linked to our program management system -- the program will actually go across the different silos of the business and bring together projects that are associated with that program. From there, some of the steering committee executives provide input across inter-business or divisional silos, and we can coordinate between the different business units on our overall planning. We can prioritize the various projects associated with each program. It has worked out well for us.

EL: How are you handling the tactical side of things?

MD: For the past 10 years, we've also been doing tactical planning based on our quarterly tactical plan for one year. Each time we meet, we extend the plan by one year. Our rolling strategic plan, which is updated yearly, drives our tactical plan; the two plans exist as two concentric wheels feeding each other on a continuous cycle. The strategic plan has a three-year horizon. It establishes our environment for the continuous planning to take place, and it also becomes a reference document that is linked to the business value drivers, set by the business.

On the tactical side, we're continually pulling pieces out of the strategic plan, and updating them. This process helps Information Services (IS) make management decisions more quickly. By accepting projects a quarter out, we can change the target date, unless there is a major business process we have to do. Either way, we generally don't get any major surprises.

EL: Do you have formal vehicles for performance metrics?

MD: We aren't using a balanced scorecard now. We have a scorecard for the business and each divisional business unit. We have core strategies in various areas, such as first to market with key products, excellence in customer service, operating efficiency and effectiveness, and aligned and engaged employees and business and finance management. IS maps this vision to the business value drivers and the IS services in place. IS then maps to the goals we have in place, such as business alignment, continuous business planning, and flexible and agile organization.

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Elizabeth M. Ferrarini is a free-lance technology writer from Boston , MA. Reach her at elizabethferrarini@yahoo.com.

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When I interviewed Steve Forbes, the president and CEO of Forbes Inc., and editor of Forbes magazine, more than four years ago, the war in Iraq had just begun, the country was just coming out of a recession, and many companies were still recovering from the dot.com debacle. Today, we have a different picture, according to Forbes, who ran for the U.S. presidency in 2000. He says, "The global economy has grown at more than 30 percent. There has never been a time in human history when so many people have advanced so quickly, and in many parts of the world as we've seen in the past few years."

 

Enterpriseleadership.org recently caught up with Forbes to get an update on the pulse of the economy and to access the heartbeat of technology. Here's what he had to say:

 

EL: Even with the war in Iraq are we still is our economy still  going?

 

SF: What's amazing is that since September 11, the global economy has been booming like never before. India and China both have millions of people striving to get into the middle class. This is an extraordinary global event. We see the same thing happening in Eastern Europe and Central Europe. Since the war in Iraq, the growth of the U.S. economy has exceeded the entire output of the Chinese economy. China grows at a faster rate than the U.S., but China has a smaller base to grow from.

 

EL: What are some of the problems with the American  economy?

 

SF: When it comes to the American economy, we have to take a hint from comedian Rodney Dangerfield who always talked about getting no respect. Well, the U.S. economy doesn't get much respect. We still have very good fundamentals. Productivity grew twice as much in this decade as it did in the previous decade, even though it fluctuates from quarter to quarter. Thanks to technology, we don't have the inventory gluts that we had in the past. Businesses now respond more rapidly to changing times and circumstances.

 

Corporate America is flush with cash to the tune of $2 trillion dollars. Despite the smearing of the American consumer as wallowing in massive credit card debt, the net wealth of American consumers now totals about $29 trillion. If you throw in what people have in their 401k plans and what the equity in homes is worth, you get another $25 trillion. The American people have more savings than the rest of the world. Meanwhile, Washington diplomats say we don't save enough.

 

EL: What's your view of the sub-prime mortgage crisis?

 

SF: Yes, given human nature, the economy has its weaknesses. The sub-prime mortgage crisis is real. First, you need to realize that we have hundreds of trillions in assets in the country and around the world. To this end, a $300 billion loss should not be an economy killer. Each day, however, the stock market will change its value several hundred billion. The sub-prime mortgage problem happened because a lot of people couldn't tell if what they were getting was good or bad. In fact, even rating agencies didn't know how to rate the stuff. So, they weren't useful in determining what was good and what was bad. The system ceased in August.

 

EL: Given all of the roller coast reports about the economy, how has  the technology sector been doing?

 

SF: To paraphrase Bill Clinton, I would say it depends on how you define it. Overall, the technology sector has been doing very well. Both Intel and Cisco have gotten new leases on life. New companies are coming along. We see some tech IPOs. There's a feeling that the markets are paying up with prices that you haven't seen in several years. This situation happens because of innovation. The investment side of technology doesn't go in a straight line; you have booms and busts. Those who use the innovations, rather than those who create them, sometimes make the most money. On the large scale, we see something that has been around since canals and railroads.

 

EL: What technology sectors interest you the most?

 

SF: I like the whole area of broadband, especially as it gets more real capacity. Broadband, however, is still in the primitive stages. I see it from my industry on the media side. The Web has become a disruptive technology that is changing everything. We're now in the broadcasting business; the Forbes.com Web site gets 15 million visitors a month. When we get better broadband quality, we'll replace traditional TV and cable, and we won't have to worry about broadcast licenses.

 

I also like the entire area of biotechnology. What scientists have discovered  about the brain is mind boggling.

 

EL: How do you feel about social media?

 

SF: It's a whole new world. Everyone is going to YouTube and Facebook -- adults are the biggest users of Facebook. It's not a substitute for face-to-face meetings; however, Facebook enables you to get in contact instantly with a large number of people, like you never could before. But kids who use these sites have to be careful what they do; they could be harmed for life. There's no statute of limitations. This dilemma raises a host of privacy issues and accuracy issues.

 

It also puts a premium on branding because there are zillions of blogs out there now. How can you go to a brand that you know people trust? This is why Forbes.com has an edge in the blog force. People trust where the information comes from.

 

EL: Are there any startup companies that interest you?

 

SF: I'm more interested in how you're going to end up using whatever the startup. Who would have thought that Facebook would go from a college thing to something everyone wants to use as a virtual get-together for coffee!

 

Facebook could have sold out two years ago for one billion dollars. Now this company is talking about $10 billion. Companies rise up and they go back down. Look at all of the causalities in the past five years.

 

EL: How does innovation play out in American corporations  today?

 

SF: Often times, innovations come from the outside of corporations or the incumbents. For example, Bill Gates didn't see the importance of the rise of the Internet. He thought interactive TV was where the future was going. When he realized he made a mistake, he started to scramble. Take Google. This search engine is not only the dominant player in search, but in online advertising. YAHOO! is struggling, and Microsoft is way behind. Incumbents brought innovation to Google.

 

EL: Do you see Microsoft getting into life sciences?

 

SF: Microsoft hasn't had a major breakthrough in years. So this company is trying a little bit of everything now to see what sticks.

 

EL: Besides offering podcasts and video on Forbes.com, do you plan to  phase out your print publications?

 

SF: We see one feeding the other. Print gives the Web site credibility. The Web site gives print credibility. We see each medium as being a platform aimed at the same constituency -- entrepreneurial capitalism. We've always treated the Web as a different medium. That's why we have very high traffic. About 95 percent of the Web content is original to the site, and does not appear in print. Many publishers have made the mistakes of making one medium subservient to the other. Instead, we've treated them as distinct entities.

 

EL: Anything you would like to pass along to chief information  officers about adopting new technologies?

 

SF: It's understandable that CIOs are skeptical about adopting new technologies. In 2000, many companies scrambled to have a Web presence. Whether it's WiFi or Starbucks, many of the people who do well often see how to apply something new in a way that hasn't been done before. Ask yourself who made the most money in mainframes and computers? It wasn't IBM. It was Wal-Mart. About 40 years ago, Sam Walton realized that if he managed information -- about his inventories and his competitors -- better than anyone else, he could beat his competitors at their own game. So, how you use technology is the key.

 

CIOs shouldn't just be looking at the technology. Instead, they should be trying to understand the innards of the business, and then, based on this information, assess what information diagnostic tools they need to get things done. For example, a smart company, such as Toyota, always finds the best way to do things. To develop its great supply chain, Toyota took a practical approach to studying information flows and then deciding what tools it needed.

 

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Elizabeth M. Ferrarini is a writer from Boston,  Massachusetts. Reach her at elizabethferrarini@yahoo.com.

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