Nando Parrado: Survival is a Choice

Nando Parrado blew us away on Wednesday at the World Business Forum. His speech caught most everybody by surprise – amidst talks on leadership and management from some of the world’s brightest luminaries, Nando’s incredible story of survival (as captured in the movie Alive (1993)) and powerful lessons on humanity, put the entire Forum in context.

“I’ve run companies,” he said, with a seasoned levity, “but there are no challenges in business – only issues.” The audience responded with enlightened chuckles. “This,” he continued, referring to his 72 days in the Andes – hungry, freezing, and left for dead – “was a challenge.”

On Friday the 13th, October 1972, a plane - carrying Nando, his rugby team, and loved ones - crashed into the Andes mountains – 14,000 feet high, deep in snow. Nando survived the initial impact – he was in row 9, the last row still attached to the plane. His mom, his sister, and his three best friends were sitting behind him - they did not survive. Over the next 72 days, the survivors rationed food (in one three day period, each survivor had only one chocolate-covered peanut to keep them from starving); they heard on a radio that the search for them had been called off; and they lived through an avalanche that took more lives. Temperatures would reach as low as 35 degrees below zero.

Two months into the 72 day ordeal, Nando could no longer sit still. “I’m not going to die here,” he would say. He knew it would be up to them (really, him) to get out alive. He wanted to summit the mountain they crashed into, in the hopes he would see the green fields of Chile on the other side, and find a path to rescue. He took a friend with him. In three days they reached the top. From the summit, they saw nothing but snow-covered mountain ranges in all directions. His friend cried: “We’re going to die, Nando.” Again, Nando said, “I’m not going to die here.” He then “took the biggest decision of (his) life” – he decided to just walk, walk until he took his last breath in search of rescue. Nando and his friend proceeded to trek 65 miles over 10 days. Nando lost 90 pounds. Finally, they ran into a man near a river, who took them in and helped facilitate the rescue of the others. In all, 29 would die; 16 would survive.

What is it about Nando that drove him to trek 65 miles across the Andes mountains in 10 days, losing 90 pounds along the way, after having already spend two months stranded and starving and freezing, without hope of rescue, hovered in the small space of the fuselage of the crashed plane that his mom, sister, and three best friends perished in? Simply put, what drove Nando to survive?

In a word: commitment. A commitment to survive; a refusal to die. “I’m not dying here,” Nando would say, “Not now.” When others lost hope, he chose to keep going until death or rescue. His fellow survivors have said that it was Nando’s confidence in their survival that kept them alive.

This experience helped Nando understand what was truly important in life – the love of those around him. As he told the audience: Never lose connections. Embrace those around you. Love is the reason for living.

He ended with: “Life is not measured by number of breath you take, but the moments that take your breath away… and those moments are connected to love.”

He walked off stage to a roaring standing ovation – the only one in our two years at the Forum.

World Business Forum: Themes from Day One

Wendy Kopp, CEO of Teach for America, was the breakout star today at the World Business Forum inside New York’s Radio City Music Hall – and she wasn’t even presenting. Jim Collins and David Gergen, independently, called Wendy out as one of the best leaders of a generation. Coming from these two men – Jim Collins, who has researched a combined 6,000 years of history in business leadership, and David Gergen, a witness to four decades of political leadership serving presidents Nixon through Clinton – that’s quite an endorsement.

And that leads us to the first of three main themes of the day:

1. Social enterprise

Jim Collins, former faculty at Stanford's Graduate School of Business and author of classic business books Built to Last and Good to Great, set the tone early in his speech when he asked members of the audience if they were involved in a social organization, a charity, a group outside of work that helped the community. He stressed the importance of being involved. “We have come to believe,” he said of himself and his staff, “that if all we have is great companies, we may have a prosperous nation, but not a great nation.” He continued by implying that what makes a great nation is the success of building society outside of the board room – the need to build and deliver social good, the need for “great K-12 education… and not just for some.”

David Gergen, former advisor to four US presidents and now a CNN analyst and professor at Harvard’s Kennedy School, made clear his optimism for the next generation of leaders – the Millennial Generation (those born between 1977 and 1998) – the generation of young people who are more concerned with serving their country than any generation since the WWII generation, what Tom Brokaw calls the “Greatest Generation.” And while these Millennials aren’t necessarily as interested in serving in uniform, they are very interested in serving nonetheless in the social and civic sphere. (Bill George, professor at the Harvard Business School and former CEO of Medtronic, shared a similar point with us in Davos, Switzerland earlier this year at the World Economic Forum).

Jack Welch, former CEO of GE, in a wonderfully direct interview with Alan Murray of The Wall Street Journal, raved about Waiting for Superman, the new documentary, made by “this Liberal producer” of An Inconvenient Truth, which highlights the plight of public education in the US. Asked by an audience member (a Millennial who used to work in finance and is now a teacher) what he would do to fix the education system, Welch said he would challenge the tenure system, reward teachers on merit, and weed out the weak. He reminded us that in education, students are the product, not the teachers. (The audience applauded).

Overall, the trend toward social enterprise will likely only grow as Millennials come of age and take on more leadership roles.

Which leads us to the second theme of the day:

2. People

Jim Collins, with mounds of business leadership research behind him, said the single-most important skill of a great leader – hands down – is the ability to pick people… and put them in the right seats. In fact, he said that 6 to 7 of a great leader’s top 10 career decisions will be people decisions – or should be.

Jack Welch put it another way: “You gotta hire people smarter than you are.” He also took a shot at the Hewlett-Packard board for not developing leadership within the company (HP has had a recent history of shuffling through one outside CEO after another). He went so far as to say, “The Hewlett-Packard board has committed sins over the last 10 years. They have not done one of the primary jobs of a board, which is to prepare the next generation of leadership.”

David Gergen talked about President Obama’s senior team and suggested the need to include people outside his Chicago inner circle, particularly to add some business “heavyweights” to the team.

Charlene Li, social media expert and co-author of best-selling book Groundswell, framed it in terms of relationships – with employees and customers. She cited companies like Best Buy that understand the true purpose of social media – to create new relationships that didn’t previously exist and to strengthen ones that already did.

People are critical. Our ability to choose and place them will color our own and our company's success.

And if people color our success, then passion drives it, which brings us to the third theme of the day. Not only was it talked about by today’s speakers, but also on display by them:

3. Passion

Jim Collins speaks as if he’s on fire. With big eyes that buldge in moments of excitement and precise body movements that struggle to control a fierce internal fire, Collins cited one of the key traits of a great leader – not just regular ambition, but extreme passionate ambition for the cause (or company), not oneself.

Jack Welch talks with an energetic and snapping wit. He spoke about the importance of "nuts with ideas." In not so many words, he said that passion drives enterpreneurs, and entrepreneurs will drive us out of this economic rut. What logically follows is that passion is the spark of the economy.

Charlene Li speaks with a constant smile and impassioned calm, as she shares how companies can leverage social media. She told a story about a Best Buy employee who responded personally to a tweeted question of hers. The employee was going to be at Charlene's nearby store in a few days and offered to meet Charlene there in person to discuss her product inquiry further. She was blown away by this employee's ownership of her question. That ownership comes from somewhere - passion for the customer.

These speakers are all at the top of their game, and they’re all passionate about what they do. That's not a coincidence.

Come back tomorrow to find out what emerges from the speeches of Steve Levitt, Al Gore, James Cameron and others, as our coverage of the World Business Forum continues.

World Business Forum: Here We Come!

We are thrilled to be a featured blog of the World Business Forum again this year.

*Impressive is the lineup of speakers: Al Gore, Jack Welch, Jim Collins, David Gergen, and James Cameron, just to name a few.

*Spectacular is the setting: Radio City Music Hall in New York City (See picture at right).

*Relevant are the themes: Leadership, Strategy, Innovation.

Visit us on October 5 and 6 for live coverage. We’ll share insights from luminary leaders and buzzing bloggers.

This year, we will be blogging alongside The Wall Street Journal and other major news outlets. We’ll also be joined by some of the best blogs in cyberspace. A few bloggers I’ve been following since meeting them at last year’s Forum include:

• Braden Kelley at Blogging Innovation
• Jim Estill at CEO Blog
• Andrea Meyer at Working Knowledge
• Steve Todd at Information Playground
• Ken McArthur at Impact Blog
• Stu Miniman at Blog Stu
• Jonathan Fields at Career Renegade

Be sure to check them out.

For a complete list of speakers at this year’s Forum, you can visit the World Business Forum website. As you enter the site, you’ll also get a multi-media flavor for the event.

The World Business Forum never fails to wow. Simply put, it's one of our favorite events of the year.

Book Review: "7 Lessons for Leading in Crisis" (Bill George)

(Originally posted by The Popped Kernel on Amazon.com)

In "7 Lessons for Leading in Crisis," Bill George not only leaves his readers eagerly anticipating their defining moment, but also provides them with an effective blueprint to seize it. That’s the value of the book – it’s proven and practical guidance for a leader amidst crisis. In effect, you’ve got to know what you’re passionate about, pursue it, and have integrity along the way. Only then will you have a chance as a leader to attain legendary success.

Bill cites many companies and leaders to support each of his lessons. With a focus on breadth of examples over depth, Bill’s convincing power is rounded out by his authority in the field. You’ll do well to heed the advice of a man who’s been CEO of the world’s largest medical technology company (Medtronic) and is now a Harvard Business School professor and internationally renowned expert on leadership.

The book is a quick read. It’s simple in language and structured in thought, if not a bit didactic in tone. It seems written for the executive on the go, who wants concepts now and will figure out the details later. It’s a non-intimidating, easy read that begs re-reading over time.

In the end, if you’re looking for Shakespeare, don’t read this book (though that likely wasn’t ever Bill’s intention). But if you’re looking for timeless leadership advice in practical form, from someone who’s been there, then get yourself a copy.

Bill’s 7 Lessons – more detail for each you can find in Jessica Lipnack’s book review – are:
1. Face reality, Starting with yourself
2. Don’t be Atlas; Get the world off your shoulders
3. Dig deep for the root cause
4. Get ready for the long haul
5. Never waste a good crisis
6. You’re in the spotlight: Follow True North
7. Go on the offense, Focus on winning now

Bill George: Play Your Game, Not Theirs

We recently spoke with Bill George, widely known for his classic book on leadership, True North: Discover your Authentic Leadership. He's also a Harvard Business School Professor and the former, storied CEO of Medtronics, the world’s largest medical technology company (think pacemaker). You can see him at the World Economic Forum in late January as a panelist on leadership.

Bill is not your typical CEO or Business School Professor. He doesn’t shy away from ideas of vulnerability, self-reflection, or even counseling. In fact, he sees them as sources of power, not weakness.

Bill preaches about the importance of knowing who we are (awareness), being open about it (vulnerability), and sticking to it (commitment) in the choices we make in life and as a leader. It’s when we do these things that we’re strong enough to resist temptations of “short-termism” – that is, the temptation of immediate gratification over the more sustainable long view.

Take the recent economic meltdown. Bill believes it was caused, not by sub-prime mortgages, but by “sub-prime leadership.” Too many people got caught up in the short term, more concerned about keeping up with the corporate Joneses and meeting Wall Street expectations than with the long-term health of their own companies. Bill is convinced that “if you play Wall Street’s game, you will destroy your company.” Look at Citibank, AIG, and countless others.

That said, it’s difficult to not play the game. Does a leader really even have a choice? What can one leader do in the face of such powerful forces as competitive pressure, fiduciary responsibility, and Wall Street expectations?

Bill’s response is simple: “Just don’t play [the game]. Just say no.” Simply say “we are in the business of building long-term shareholder value” and go about doing it. That’s what he did at Medtronic. And the long-term health and strength of the company has benefited greatly. Not right away, but in the end, when it matters.

There’s a personal parable in all of this. In our career choices and lives in general, we’ve got to be strong enough to take the long view over the short one. We’ve got to know who we are, be honest about it, and make decisions from there, decisions that lead to sustainable personal growth, not dramatic falls.

Taken together, Bill’s philosophy is a virtuous assault on conventional wisdom, a wisdom – propagated by mainstream media and corporate culture – that tells us to “[try] to make a good impression and not show them who you really are.”

He is not naïve, however, about the difficulty of defying conventional wisdom. In fact, he says, “If you share your vulnerabilities and weaknesses, you figure you won’t get hired. And maybe you won’t. I think that’s the problem."

So how do we overcome this problem, the powerful forces against being who we are? Unfortunately, the answer isn’t clear. It’s a matter of personal choices and values. Bill admits that we can reach success if we play the short-term game or hide who we are. But the chances of it being sustainable are slim. It will likely lead to a fall, more precipitous and more probable than if we played it right.

Bill’s view on failure is similar to that of luminaries we’ve already spoken to – it’s more a blessing than a curse. The key is whether we learn from it or not. Bill believes, “early failures are one of the greatest learning tools you can have.” We try hard not to fail early in our lives and careers. But the earlier we fail, the earlier we learn and the more we avoid self-destructive behavior later on. Bill reminds us that “the greatest failure of all [is] the failure to take risks to be who you are.”

When we do fail, Bill implores us to not simply blame others and move on, but rather, look internally. Own it. Make the necessary changes. And then move on. Stronger.

Listen to our full interview with Bill to find out more about him, including:
- His personal epiphany
- His relationship to luck
- His view of social media
- His take on Bill Clinton and Sandy Weill

Clinton, Obama, Afghanistan: A Thought Experiment

With Obama’s decision on Afghanistan imminent and Bill Clinton’s World Business Forum speech still resonant, we thought we’d do something of a thought experiment on leadership and decision-making.

What counsel might Clinton give President Obama on Afghanistan? Specifically, how would Clinton break down the current conundrum, and what advice on leadership and decision-making would he offer?

“Should we escalate in Afghanistan? I have three answers: Yes. No. Maybe.

Yes
September 11 has taught us that an unstable Afghanistan is a direct threat to the American people. That’s what makes this so different from Vietnam. Leaving the country will afford Al-Qaeda the same terrorist haven they enjoyed on September 10... and this time without as much resistance from a Northern Alliance.

No
Victory depends on commitment, and you don’t have it from the American people. Not even from your own Vice President. Americans want jobs, not increasing bloodshed abroad. Escalation without commitment will lead to another Vietnam.

Maybe
The Afghan people will support that group which cares for their children. Currently, they’re supporting the Taliban, but mostly out of fear. If we helped the Afghans build a sustainable country that was safer and more prosperous for their children, the Taliban wouldn’t have a chance.

The Afghan government is corrupt. We can build schools and train laborers, but buildings and skills will be gone or devalued once we leave, unless the Afghan government is there to support them. It’s unclear whether they have the will, or even the capability, to do that.

Pakistan is unstable; it’s also a crucial partner for success in Afghanistan. If they continue to assist the Afghan Taliban as a way to counterbalance India’s influence, or if a coup replaces the current regime with a much more hostile one, then we’ll have no chance of containing the Taliban along the porous Afghanistan-Pakistan border. Pakistan could be our biggest wild card. Their support is and will be paramount.

Leadership and Decision-making
The considerations are many, related, and complex. Regardless of what you decide, make sure you:
- Have a vision of where you want to go
- Lay out a strategy on how to get there
- Develop specific actions to implement the strategy
And underscore these things with an understanding of not just policy but also of people.

Some of the most difficult decisions I ever made as president were not necessarily the least popular – the unpopular decisions were sometimes easy because I knew what the right answer was – no, the difficult decisions were the ones for which I couldn’t know the right answer… those 10% of presidential decisions that can’t come from policy reports or staff recommendations, but rather must come from intuition. You have to listen and feel your way to the answer. If that happens, the best you can do is level with the people and say that if you’re not right you’ll change.

A great leader is a great decision-maker. You have one hell of a decision to make.”

World Business Forum: Lessons Learned

What an experience to blog from the 2009 World Business Forum at Radio City Music Hall in New York City (see official Bloggers Hub in photo at right) to bring you insights from the world's foremost thought-shapers and opinion-makers. From Bill Clinton to Pat Lencioni, from George Lucas to T. Boone Pickens, there was no shortage of unique insight or rich perspective. From their powerful speeches and personal stories emerged four main themes.

1. Fail to succeed. Failure is a must-stop on the road to success. Several of this year's speakers failed at or quit something before finding their path and reaching the heights of their success.

• T. Boone Pickens quit his job at a petroleum company at 26 years old. He ultimately started his own, shaping not just the oil industry but the concept of "corporate raider."
• George Lucas was "up to no good" racing cars, before pioneering filmmaking magic.
• Bill George left a potential (and much coveted) CEO position at Honeywell to run a much smaller (and at the time, much less proven) company in Medtronics. He eventually became a storied corporate executive, Harvard Business professor, and renowned leadership expert.
• David Rubenstein quit his job as a lawyer in his late 20's without resistance from his bosses. He also failed in the Carter administration where he was responsible for fighting inflation and "got it down to 19%." All before starting one of the world's most successful and influential (if not controversial) private equity firms.
• Pat Lencioni felt like he failed at Bain & Company for not being a numbers guy. It's that experience which led him to pursue organizational management and become one of the world's leading experts of it.

Failing and quitting - two things we're taught at an early age to avoid - were not only good, but necessary for these industry titans to, in fact, become industry titans.

2. Be human. Aligning what we do to who we are is critical. How we work must better reflect who we are as human beings - more emotion and creativity, less reason and structure.

• Gary Hamel believes we're in the midst of a revolution in corporate management and leadership because corporations aren't human. They're not as adaptive or creative or engaging as we are, as people. They have to be to survive.
• Kevin Roberts thinks emotion is actually more important than reason, particularly with customers. Reason leads to conclusion, but emotion leads to action.
• George Lucas believes art - to be true art - is about emotional connection; It's about telling a story in a meaningful way. The same can be said of business, specifically the thing at its very core: persuasion. There's no such thing as persuasion if not for telling a story in a meaningful way.
• Pat Lencioni believes that the emotional intelligence of an organization is its true competitive advantage. So many companies focus too much on how "Smart" they are and much too little on how "Healthy" they are.

The challenge here is how: How do we become more human as professionals, as leaders? As Jim Estill put it - he's a blogging colleague from the Forum, former CEO, and current Board member of RIM (the maker of the Blackberry) - "Leadership is messy." We want to know it in rational terms but we can't because it's not. Realizing that is the first step.

3. Challenge short-termism. We all know that taking the long term view trumps the short-term one. In fact, this year's World Business Forum opened with a Hollywood-style short film containing sage advice from proven leaders about taking the long-term view. But how do we do it in today's 24/7 world? It boils down to one thing: Leadership. Specifically, three key ingredients: Courage, Faith, and Commitment.

Take the case of Bill George, whose remarks opened this year's World Business Forum. When he was CEO of Medtronics, he did not shy away from telling his investors that if they were looking for a quick buck, they could invest elsewhere.

• Courage. He had the courage to take the long-view, sacrificing potential short-term wins for long-term payout.
• Faith. He had the faith to believe that, in the end, long-termism would win.
• Commitment. He had the commitment to stick with it, even, when competitors with the short-term view might have appeared to be fairing better than his own company.

Ultimately, Bill's leadership paid off. In 10 years with Medtronics, he took the company's market value from $1B to $60B. It's no wonder his book, True North, about authentic leadership, is a critically acclaimed best-seller.

4. Do One Thing. In a more interconnected world, the little things we do have an even bigger impact. Several headliners at the Forum captured the spirit of this concept.

• Kevin Roberts started the "Do One Thing" (D.O.T.) campaign at Saatchi & Saatchi where he has challenged employees to commit to doing one thing to positively impact their environment.
• Jeffrey Sachs called for global scale cooperation for our global scale problems, particularly in finance. Because one thing that a banker in New York City does can collapse entire economies (see Iceland), oversight needs to be broadscale and shared.
• Bill Clinton spoke at length about "shared costs and shared benefits" in an increasingly interdependent world: "No matter how constrained we are, we all have a role to play." He drove the point home with a story about a young man in Haiti who secured excess sawdust and paper from community businesses to make cooking brickettes. In doing so, he was able to sell them at just 1 cent a piece, down from 5 cents a piece. This young man - in collaboration with others - reduced the cooking bill for many by 80%. In a country where the average income is about $1/day, that makes a huge difference.

In the fabric of this year's World Business Forum lie true success secrets... personally, professionally, and as a global community: Be human. Take the long view. Embrace failure. Do one thing.

If we can do that, we can change the world.

Bill George: A Lesson in Authentic Leadership

Bill George, former CEO of Medtronics, current Harvard professor and best-selling author of the game-changing leadership book True North: Discover Your Authentic Leadership, was the opening speaker at the World Business Forum. His style, while reserve, exudes experience and drips professorial. He shared a number of stories with the 4,000+-strong crowd here at the Forum, highlighting signs of authentic and lasting leadership – CEO accountability in the cases of Mattel and JetBlue, Bold decision-making at Goldman Sachs before the Great Recession. But what struck us most came at the end of his speech. It wasn’t about case studies of respected companies or the company boards on which he sits. He shared his personal story with an unusual, and much appreciated, amount of vulnerability.

Bill taught us a lesson about ego and how he overcame his to become a leading expert and thought-shaper on leadership. He told us about being “The Number Two” at Honeywell, in line to become CEO of one of the world’s largest and most respected companies. Bill had been at Honeywell for 10 years. He was trying to impress his colleagues and his board. He wanted them to choose him as the next CEO. But something didn’t feel right. He even wore cuff links (which he didn’t like). He would talk to his wife about it at home. A relatively small biotech company, Medtronics, approached him several times to run their company, but they were too small. He kept saying no. His ego wanted to run a large company.

Finally he met with Medtronics. He was surprised by his reaction. He felt at home and loved the mission of their work. He left Honeywell to lead Medtronics, taking the $1B company to $60B in market value in 10 years. Now, he’s on the board – or has been on the board – of several corporate stalwarts (Goldman Sachs, Exxon Mobil, Target, Novartis) and is an international powerhouse in the field of leadership.

It’s unclear whether Bill made the move to Medtronics because he wasn’t going to make CEO at Honeywell or because Medtronics just felt like a better fit for him. But we do know that he shared with us a piece of his personal story that not many CEOs would have shared. And more importantly, his story proves that when you leave that which doesn’t feel right for something that does, good things will happen. It all comes back to passion. Follow it... by definition, it’s right.

World Business Forum: Starting with a Bang

It’s lunch time right now at the 6th Annual World Business Forum. Titans of industry are dining. Some internalizing the morning talks; others right back to the pre-Forum grind. There are a number of highlights from this morning’s session – which we’ll write about in forthcoming entries – but first, context.

The Forum opened with a bang. After the lights dimmed in the main hall of Radio City Music Hall, a booming Hollywood-style short dramatically shot up on screen. The film ranged from alarming to uplifting. It began with a stark image of space to a doomsday score. A slathering of headlines from one year ago filled the screen. The clippings morphed quickly into a large ball, a planet, then froze for an instant. The music too. Nothing. Then, just as dramatically, hope filled the auditorium with a charge of instrumentals and images of great leaders espousing the timeless values of leadership, decision-making, the long-term view. As the music crescendo-ed, so too did the wisdom and stature of the leaders. It ended simply and directly with a narrator's voice, “We want (you) to start growing again.”

The message at this year’s World Business Forum is clear: The storm is over. As we get up, dust ourselves off, and look around, there’s devastation. But there’s also opportunity… opportunity to learn, move on, and apply. The possibility that it may be harder to do than surviving the storm itself is real, but it does not minimize the magnitude or value of that opportunity. Perhaps it makes meeting the challenge that much sweeter.