Tag: Wharton’s Center for Leadership and Change Management

Leadership Lessons from On High

In 1986, Rodrigo Jordan, a Chilean adventurer, set out to climb Mt. Everest — the world’s highest summit at 29,035 feet – by an especially difficult and dangerous route up the mountain’s Kangshung face, nearly two vertical miles of jagged rock and black ice. It poses a colossal challenge for surviving, let alone ascending at high altitude. Jordan’s team had fallen short in that attempt, tried again in 1989 and finally made it in 1992. 

In an essay titled, “Mt. Everest, Part II: Learning from a Second Climb of the World’s Highest Mountain,” Michael Useem, director of Wharton’s Center for Leadership and Change Management, writes about leadership lessons from the Mt. Everest experience that apply to any situation where teamwork is a crucial part of the project’s success. Here is an excerpt from that essay.

 “Fast forward two decades,” Useem writes. “Jordan decided that a 20th anniversary celebration of his country’s first ascent of Mt. Everest would be welcome. Like veterans of foreign wars, veterans of Himalayan expeditions sometimes commemorate their achievements with reunions, but Jordan would add two novel twists, both of them reflecting his lifelong passion for exploration, leadership, and learning….  

“The mountaineering tradition has long defined climbing success as the placement of at least one or two members of an expedition on the summit, with others playing essential roles of support but all enjoying the accolades of success. For its many benefits, however, that tradition always came with a price, borne by those who did not stand on the summit but who might have done so were it not for the luck of the draw or the obligation of support. 

“That custom, however, gave way to a new concept during a breakthrough discussion led by Rodrigo Jordan at a base camp several years earlier. He was then leading a Chilean expedition to climb Lhotse, a 27,940-foot peak attached to Mt. Everest, and his team was preparing to send a small summit team to the top of Lhotse. Jordan faced one of an expedition leader’s most excruciating decisions. Many of the team’s members are typically capable of reaching the summit, all have shouldered great risk in carrying supplies, and yet only a pair or two are normally accorded a chance to stand on the shoulders of others to make a final push for the top. 

“Jordan’s climbers had assembled in a base-camp tent to learn whom he would designate for the honor of the summit team. But he surprised them all by proposing to follow a very different pathway. Instead of the leader solely choosing, all of the climbers would collectively decide on the summit party, bringing far more data to bear on a critical decision since each member would contribute his own direct knowledge of the relative capabilities of all the others.  

“One of the climbers in the base-camp tent, Kiko Guzman, proposed instead an even more novel approach:  Why not plan for all to go for the summit? The light bulb lit, Jordan instinctively responded, “why not?” and in an instant Jordan and his team embraced a complete break with convention. That required quick revision of a host of logistical plans: The high camp on Lhotse, for instance, barely had room for several climbers, let alone all. But just five days later, Jordan and 14 others stood on the summit of Lhotse – the first Chileans to reach the top, and all of the Chileans on the expedition.

“The same is now planned for Jordan’s return to Mt. Everest this spring. Jordan has invited 10 mountaineers, three army officers, and 10 climbing sherpas to join the expedition, and he is planning for all who are physically fit on summit day to climb from the high camp, shinny-up the Hillary Step, and hopefully come to set foot on the highest square yard on earth…. Stay tuned: http://www.everest20años.cl/english.”

Many of these leadership lessons will be discussed June 20 at the Wharton Leadership Conference 2012, whose theme is “Leading in a World of Conflict.” The conference is organized by the Center for Leadership and Change Management and the Center for Human Resources.

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Inside Job: Changing of the Guard at IBM

It came as no surprise to many when IBM announced yesterday that Virginia Rometty, a senior vice president with expertise in sales, marketing and strategy, will replace Samuel Palmisano as CEO in early 2012. Although Rometty is not a household name outside of IBM, those in the technology industry speak highly of her management skills — a capability she will need in the challenging years ahead.   

As Wharton management professor Michael Useem puts it: “IBM, under her leadership, will no doubt have to reinvent itself yet again during the coming decade” in much the same way it did under Palmisano during the 2000s and under former IBM CEO Louis Gerstner during the 1990s. Rometty is likely up to the task, Useem adds. “Presumably, she has been very well mentored and developed as an inside candidate. Hewitt Associates and Fortune rank ‘the world’s best companies for leaders’ every two years, and IBM ranked number one in 2009, the last available ranking. Rometty is a product of IBM’s leadership engine.”  

The challenges ahead for Rometty, 54, who has been with IBM for 30 years, are huge. The company has 400,000 employees and more than $100 billion in revenues. While making sure that earnings from existing lines of business continue to rise, “she also has to ensure that the company “is building the new and innovative lines that will increasingly come to define it in the years ahead,” says Useem, who is director of Wharton’s Center for Leadership and Change Management. On the global front, “virtually all major U.S. companies are seeking to expand their offerings and presence in the BRIC [countries], and IBM had led the way here, too. More than a quarter of its employees, for instance, are now based in India, and the number may soon exceed 150,000. Rometty no doubt will build on IBM’s existing strength in China, India and elsewhere to continue the company’s globalization.”

According to Wharton management professor David Hsu, “providing business services and data analytics is getting to be a more competitive space, as many of IBM’s peers have been reorienting themselves to compete in these domains. Given the quick pace of information technology evolution as it relates to business services, Rometty will [need to] recognize and respond to external threats and opportunities in these markets…. Moreover, since Palmisano is handing off management responsibilities at a time when IBM has been doing relatively well, Rometty may face resistance in deviating too much from the status quo. Hopefully this does not constrain her in exercising bold leadership should the opportunities arise.”

Serving the global marketplace was an important part of her prior role in sales and marketing, Hsu adds, and he expects this to continue being a priority in her new role as well. “There can be a virtuous cycle of leadership in research and development and in commercialization of products and services. If IBM can serve more growing markets and interact with varied customers to meet their needs, it will be easier to fund ongoing R&D, which in turn will allow the company to successfully compete in the global marketplace.”

Rometty’s appointment puts her in an elite category of women running major corporations, a group that includes the CEOs of Xerox, DuPont, PepsiCo and, most recently, Hewlett-Packard, which appointed former eBay CEO Meg Whitman to the top job in September. Press reports on Rometty’s new role cite several of her major accomplishments, including her push to purchase PricewaterhouseCoopers Consulting in 2002 — a move that paid off despite the challenges of integrating two very diverse organizations — and her experience in sales and managing client relationships.

Wharton management professor Lawrence G. Hrebiniak clearly approves of the appointment. “Rometty rocks!” he says. “She certainly deserves the job. This has nothing to do with gender: Her performance speaks for itself. She led the growth of IBM as a global services company and as a force serving 170 global markets. She’s not well known outside of the technology arena, but this means nothing. IBM almost always chooses its leaders from within based on performance and potential, not on external name recognition, and her track record makes her most deserving of the high post.”

Hrebiniak sees Rometty’s main challenges as “continuing IBM’s growth in the face of increasing competition. Maintaining momentum is key. IBM has the resources and capabilities to grow; the question is where will these resources be focused. Logically, given Rometty’s past experiences in sales and marketing, this focus should be global, with eyes on growth areas in China, Brazil and India.”

Wharton marketing professor George S. Day suggests that “given the strength of the current strategy, it was wise to pick a respected insider – in contrast to the missteps by HP. I doubt that Rometty will have board issues. Her challenges are to keep growing globally, keep good people and maintain a market-driven culture. Their solutions strategy is sound and hard to copy.”

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