LEADERSHIP IN PRACTICE T. Michael Porter President & Chief Executive Officer The CUMIS Group Limited September 2001

M ANAGEMENT Leadership in Practice Planning & Budgeting Organizing & Staffing Organizing & Staffing Controlling & Problem Solving Controlling & Problem Solving M anagement is… - What I will not be speaking about today -

L EADERSHIP Leadership in Practice Establishing Direction Aligning People Aligning People Motivating & Inspiring Motivating & Inspiring L eadership is… - What I will be speaking about today -

T HE FUTURE CHALLENGE Leadership in Practice Leadership Leadership Development War for Talent - What I will be speaking about today -

E STABLISHING DIRECTION Leadership in Practice Developing a vision of the future - often the distant future - and strategies for producing the changes needed to achieve that vision. John P. Kotter A Force for Change

E STABLISHING DIRECTION Leadership in Practice Relationship Management (customer relationships) Mission / Vision / Values Instituting a Planning Process Strategic Plan 6 Strategies (consistent, with addition of profit) Tactics / Actions / Change

E STABLISHING DIRECTION Leadership in Practice “Leaders need to look around the corner and anticipate what will be there”

A LIGNING PEOPLE Leadership in Practice John P. Kotter A Force for Change communicating direction in words and deeds to all those whose co-operation may be needed influence the creation of teams and coalitions that understand the vision and strategies and that accept their validity

Leadership in Practice Communication (staff forums, publications) People Practices 360 o Process (behavior, skills, competency) Building Trust (values / openness) Planning Processes / Planning Teams A LIGNING PEOPLE

Leadership in Practice Top 35 Survey Employee Opinion Survey Reward & Recognition Measuring / Revisiting A LIGNING PEOPLE

M OTIVATING & INSPIRING Leadership in Practice Energizing people to overcome major political, bureaucratic and resource barriers to change by satisfying basic, but often unfulfilled, human needs. John P. Kotter A Force for Change

Leadership in Practice Leadership is bred, not learned People Priority Values Focus Mentoring Program Constant Change / Continuous Learning Bringing People Together AND... M OTIVATING & INSPIRING

Leadership in Practice M OTIVATING & INSPIRING ORGANIZATIONALDEVELOPMENT CREATING THE CULTURE

T HE FUTURE CHALLENGE Leadership in Practice “Our company has enough talented managers to pursue all or most of its promising opportunities.” O RGANIZATIONAL DEVELOPMENT McKinsey & Co.’s “War for Talent 2000” “Our company is always looking for talented people, even if we are not trying to fill a specific position.”

T HE FUTURE CHALLENGE Leadership in Practice “Our company has enough talented managers to substantially increase our performance relative to competitors.” O RGANIZATIONAL DEVELOPMENT McKinsey & Co.’s “War for Talent 2000” “Our company pays whatever it takes to prevent losing our high performers to other companies.”

T HE FUTURE CHALLENGE Leadership in Practice “We are confident that our current actions will lead to a stronger talent pool in the next three years.” O RGANIZATIONAL DEVELOPMENT McKinsey & Co.’s “War for Talent 2000”

T HE FUTURE CHALLENGE Leadership in Practice S YSTEM CHALLENGES Future Leadership Organizational Development Intellectual Capital Market Penetration Growing Market Share

“YOU’RE ONLY AS GOOD AS YOUR PEOPLE, AND THE WAR FOR TALENT IS INTENSE.” T HE FUTURE CHALLENGE

“AS KNOWLEDGE AND INTELLECTUAL CAPITAL BECOMES MORE IMPORTANT, ORGANIZATIONS MUST ATTRACT, MOTIVATE & KEEP THE BEST TO WIN.” T HE FUTURE CHALLENGE

Leadership in Practice M OVING FORWARD Making available our Intellectual Capacity Invitation to share our Competencies, Processes and Learning