Aalto EE Profile Magazine 3/2012

No leader is a selfless servant of the organization.

Selfish apparatus

14 9

Can yo u

win th

O UN IV E R S IT

ng-it-a

e havi

ll race ?

?

U T IV E

king it

Y EXE C

Who’s fa

OF A A LT

me?

Z IN E

Are yo u mor e equa l than

M AG A

4

18

EDUC AT IO N

3 .2 01

2

3.2012 A leader needs a mirror. Leaders without mirrors have a significantly

Myths M th h JUNNU LUSA

Leaders are often surrounded by people who feel their role is to please him or her.

They build the leader’s self-confidence to make decisions and set parameters.

“Flattery is all right so long as you don’t inhale,” Adlai Stevenson famously and pointedly said. Too often, though, we do inhale, even if deep down we know we should not.

We easily surround ourselves with yes men and women, people who are comfortable to work with, rather than listening to radicals and naysayers who might rock the boat.

Courtiers may buttress a leader’s confidence in his own superiority, but on the downside, they also tend to reinforce biases and a natural desire to have one’s preferences and interpretations validated. They distill out inconvenient truths that could upset the status quo and beautifully constructed navigation plans.

Aalto EE’s websites, Eventually, the leader is often left isolated from reality and the Facebook page and blog critical interaction and richness of a wide information base. keep you up to date on Supporters may think they have done the leader a favor and often the latest events. act from good intentions.

Check out www.aaltoee.fi Many leaders seek help from arenas outside their immediate and www.aaltoee.sg. work settings to get that all-important reality check. These people are independent of the pettiness of daily office politics. They can provide an honest mirror and allow in the harsh daylight that every leader needs.

These significant others can be childhood friends, schoolmates, or people with whom they share a hobby or sport. Often they are family members who are ever present in their private lives, but who are outside the work context and can provide a good sounding board to help the leader with self-reflection. Sometimes it is enough just to pose blunt, simple questions.

Leaders without mirrors have a significantly higher risk of derailing and burning out. In time they can become strangers even to themselves. Thus, it is dangerous to embrace a “no time for private life” attitude and a dedication Dr. Pekka Mattila, to the work and their role as a leader that leaves them D.Soc.Sc., Executive MBA; with no time for the private sphere. It is just that private Group Managing Director, sphere and the area between private and work life that Aalto University Executive help the leader to recuperate, grow and renew.

Education; Adjunct Professor This issue touches on the human and sometimes of Practice, Aalto University darker side of management and the unbearable lightness School of Business of being a leader.

2

Features

s.

Take part in creating the next issue in Blogger

Departments

You can also find us here:

What have you learned about...

FEAR

EXPLAINED

Can a company offer both equal opportunity and a fast track for high potentials?

4

Professor Dmitry L. Volkov says that Russian research and business need a global outlook.

Career decisions.

Entrepreneurship.

Stepping aside.

Are you afraid of being exposed as a fraud?

You can learn to shrug it off.

THE MYTH OF EQUALITY

Aalto University Executive Education (Aalto EE) offers high-quality executive education services supported by the competence of Aalto University. Aalto EE’s mission is to build a better world through better leadership and to educate a new generation of leaders. The organization’s strengths lie in its global operating model and versatile offering. Aalto University brings to Aalto EE a multidisciplinary approach to executive development along with innovative learning methods.

Aalto EE has two strongholds: the office in Helsinki coordinates operations in Europe and South Korea and the office in Singapore serves as a hub for the Asia Pacific rim. In addition to Finland and Singapore, Aalto EE offers education programs in Poland, South Korea, Taiwan, China, Indonesia, Russia and Sweden.

The whole magazine is also here:

THE TABOOS OF LEADERSHIP

A LIFE IN BALANCE

Should a leader be a hero, a servant or a narcissist?

Is the responsibility on the organization or the individual?

5 6 7

12

17

8

13

18

9

14

19

10

15

20

11

16

21

22

Editor in Chief: Pekka Mattila, pekka.mattila@aaltoee.fi Publisher: Aalto University Executive Education Ltd, Mechelininkatu 3 C, 00100 Helsinki, Finland tel. +358 10 837 3700 www.aaltoee.fi

Toolbox

How am I doing?

24 25

You can also find this material from web sources.

Aalto Executive Education Academy Pte Ltd, Singapore 25 North Bridge Road, EFG Bank Building, Unit 08-03, 179104 Singapore, Singapore tel. +65 6339 7338 www.aaltoee.sg

HISTORY REPEATED.

Ending

Editorial office: Maggie Oy / Zeeland, www.maggie.fi Producer: Annamari Typpö, annamari.typpo@maggie.fi Creative Director: Miikka Leinonen Printing: SP-Paino Oy, Nurmijärvi, ISSN 1458-2058 Address register: profile@aaltoee.fi

23

We filled the toolbox with tips on how to know yourself better on the road to being a successful leader.

We also help you to train your brain – and laugh a little.

26 27

Planning for succession is vital to safeguard the health and longevity of your company and to ensure a long lasting legacy.

3

FEAR

EXPLAINED ”The greater the artist, the he greater the doubt. Perfect Perfe t confidence c dence is granted to the less talented as a consolation prize. prize.”

Robert bert H Hughes, ghe Australian art criti critic and write writer

Faking it? a.k.a.

FEAR OF NUDITY

Gymnophobia (from Greek γυμνός - gumnos, “naked” and φόβος - phobos, “fear”) is a fear of nudity. Gymnophobics experience anxiety from nudity. Their fear may stem from a general anxiety about sexuality, a fear of physical inferiority, or fear that their nakedness leaves them exposed and unprotected.

TEXT: RISTO PAKARINEN

W

e all know the story of the emperor who was exposed as a fraud by the exclamation of a child. Many people, including and perhaps especially many highly successful and talented people, harbor a deep-seated fear that perhaps they, too, are frauds and will be found to be undeserving of the accolades others heap upon them. They often grapple with fears of not living up to their own high standards and the expectations of others, and live with a persistent fear that their successes will be short-lived.

than men, but that has since been shown not to be true.

What does seem to be the case is that both men and women who hold themselves to very high standards, tend to feel they are failures if they do not meet those standards at all times.

Several studies have shown that people who feel this way are more likely to come from backgrounds where support for the individual is lacking and behavior is controlled by a strict set of rules. They learn to stay inside the box. They internalize the idea that nothing may be good enough.

That, coupled with ripples of false-consensus bias, creates a false reality. People tend to interpret the world from their own vantage point and that view is their norm. People who anticipate being exposed as a fraud do not always see the merits of their actions and dismiss their accomplishments as nothing more than what everyone else is capable of doing.

“DON’T BE AFRAID TO MAKE THINGS UP. NEVER FEAR BEING EXPOSED AS A FRAUD.”

THE QUESTION IS how not to become paralyzed by self-doubt but how to channel those feelings to scale ever greater heights.

While it is a real and uncomfortable feeling, you can take some solace from being in good company if you too harbor self-doubts. The comedian and writer Tina Fey and the Academy Award winning actress Meryl Streep have both admitted to experiencing anxiety over being exposed as a fraud.

“The beauty of self-doubt is that you vacillate between extreme egomania and feeling like ‘I’m a fraud,’” Fey said in 2010. By that time, she had already won seven Emmys, three Golden Globes, and four Screen Actors Guild awards – and she has added a few more to the list since then.

Other signs include attributing your accomplishments to outside factors such as luck or good timing, and dismissing your success as something anyone could have done.

A LITTLE REBELLION MAY BE IN ORDER. Comedian Stephen Colbert advised in Wired magazine on how to be expert on anything: “Don’t be afraid to make things up. Never fear being exposed as a fraud. Experts make things up all the time.

They’re qualified to.”

Shrug it off.

“You just try to ride the egomania and then slide through the impostor syndrome. I’ve realized that almost everyone is a fraud, so I don’t feel that bad about it,” says Tina Fey.

BE BOLD. You are not the emperor with no clothes and you need not cower in fear of being called out as a fraud.

Overcome your doubts, continue to strive to be the very best you can, and be faithful to the standards you set. While WHEN THE FEAR OF BEING EXPOSED as a fraud was introspection and self-questioning can be assets for first studied – psychologists Pauline Clance and self-improvement, do not let them become an obstacle Suzanne Imes called it the ‘impostor phenomenon’ in to further accomplishments. their 1978 paper published in Psychotherapy Theory, Your talents are real. Do not lose sight of them.

Research and Practice – the results indicated that www.youtube.com women tended to suffer from it to a greater degree The Emperor’s New Clothes

4

TEXT: RIITTA SIRÉN, RISTO PAKARINEN, JOANNA SINCLAIR PHOTOS: JOHANNA HANNO, JUNNU LUSA, SHUTTERSTOCK

WHAT DOES IT TAKE TO EXERT A POSITIVE INFLUENCE ON A COMPANY’S DECISION MAKING AND MANAGEMENT? You must have extensive business knowledge and work experience from various business areas and positions if you want to contribute to the company’s success. For me, having worked as CEO and as a board member at the same time in different companies has helped me to grasp the big picture. You must also have a genuine interest in the company, what it does and what it wants to achieve.

WHAT ARE THE MOST VALUABLE CAREER DECISIONS PEOPLE CAN MAKE? Challenge yourself to change roles and job descriptions. Spend some time working for the headquarters and then apply for a position in a business division or unit. It pays off to see the company, the business and the industry from multiple points of views. You will be a more valuable asset if you know your craft inside and out.

WHAT HAS BEEN MOST INSTRUCTIVE FOR YOU DURING YOUR CAREER? I changed positions quite often. I did not have my career path exactly mapped out in advance; I took on new challenges when they were presented. Work itself has been one of my best teachers. I have also always been more interested in the content of the job description than the title or position. I suppose my transition in the 1990’s from one bank to its biggest competitor raised some eyebrows, but the job interested me so I took it.

One thing I can say, though, is that the ability to create size and to work in environments where size, scale and scope matter, is one of the most valuable skills I acquired.

WHAT WISDOM WOULD YOU LIKE TO PASS ON TO FUTURE BUSINESS LEADERS? Question the conventional balance. Plan less, do more. Emphasize tactics rather than strategy.

Think more about the how, when and by whom than the what. Plan more for the short run; do not obsess over the long run. Naturally, you should always have long-term plans in place, but in order to reach your long-term goals, you should start acting right now.

LARS G. NORDSTRÖM is Chairman of the Board of the power company Vattenfall and Board Member of the shipping company Viking Line and the financial group Nordea Bank, among other positions he holds.

He retired as President and Group CEO of the postal company Posten Norden (now PostNord) in 2011.

t u o b a d e n r a le u o y e v a What h rship,f

wise leade Lars G. Nordström?

5

TOP OF MY AGENDA – WHAT’S CURRENT IN RUSSIAN BUSINESS Professor Dmitry L. Volkov needs no encouragement to deliver his message.

Graduate School of Management, St Petersburg University knows exactly what is top of their agenda in research and what Russian businesses need today: a global outlook. Russia has its distinctive culture and ways, but so does every country. The message Volkov wants to underline is that the rules of business are global.

GLOBAL, ENTERPRISING, RESPONSIBLE. “There has been research and popular managerial How to books that attempt to pinpoint what is unique about the Russian principles of trade and our way of doing business.

This is not the way to go.

Risk-return relationships are the same wherever in the world you are.

We should not

What have you learned about

entrepreneurship,

Anne-Liisa Palmu?

WOULD YOU SAY BIG CAREER CHANGES SUIT EVERYBODY? Yes, but you have to listen to your heart for the right time to make a change.

Quitting the rat race will not be easy, nor will it make you a better person.

You will have to answer tough questions such as, am I needed? It takes a confident person to face your true emotions and the unpleasantries you may be trying to hide through hard work. Some people will not understand your decisions, so be prepared for that. Also, put your finances in order before making a big transition.

WHAT MOTIVATED YOU TO BECOME AN ENTREPRENEUR? Even if I enjoyed the content of my work, I still missed the opportunity to have more influence on my job. I left Nokia to find a new life, and I am glad to say I have. I would say every manager should have the courage to take a time-out from work; you do not evolve as a person otherwise. Managers should genuinely want to interact with people, to get the best performance out of them.

To do this, you need to know yourself and understand others. The one key competence a manager in the 21st century must have is leading through people.

WHAT HAVE YOU LEARNED AS AN ENTREPRENEUR? I have learned immensely about myself. Now that I know my behavioral patterns – in good times and under pressure – I can help my clients develop their business, to enjoy work longer and build a healthier company culture.

WHAT CORPORATE LIFE TABOOS WOULD YOU LIKE TO SEE YOUR CLIENTS BREAK? I think we may have too simplistic a view of how one’s career “should” proceed from graduation to retirement. Making horizontal moves is as important as climbing the corporate ladder. Mind you, it is up to each and every person to build their careers, you should not expect your employer to do it for you.

We should also let go of the idea that a person who does not want to move upwards always lacks ambition.

The traditional management style has come to an end. Leading by focusing on efficiency turns flesh and blood into inanimate objects. I like to talk about conscientious leadership, where managers are present and willing to lead.

6

ANNE-LIISA PALMU is the former Head of Legal Affairs at Nokia Mobile Phones.

She spent 17 years at Nokia and witnessed the rapid growth years as part of Nokia’s top management. Today, she is an entrepreneur, author and lecturer.

try to separate ourselves from the rest, we should master the game,” Volkov asserts.

“On top of our agenda in a global business setting are growth strategies for Russian companies, research focusing on improving operations management and supply chain efficiency, and finally, corporate social responsibility which collaborates strongly with business and is researched at our center supported by PwC,” explains Volkov.

AN INTERNATIONAL GENERATION. “Our degree programs have a completely different outlook towards international entrepreneur-

ship than just ten years ago. The most prominent example is language. Our new generation is multilingual, to a point of being unimaginable to older generations. It used to be that precious few spoke English. Now we have students fluent in eight languages.”

In today’s Russia, growth is more topical than ever. Volkov affirms that facilitating growth, especially among small and medium sized companies, is considered a top priority in St Petersburg.

“Nobody denies that Russia’s environment for entrepreneurs has room for improvement. In our Executive Education

programs, we have a unique program fully funded through the Citibank Foundation. It offers essential entrepreneurial education that enables growth in small and medium sized companies – completely free of charge to the participants.”

“Our aim is to enable new growth for Russia’s large, global companies, and also lead the way for current small and medium sized companies to inspire others to become entrepreneurs as well. The only real barriers to socially responsible international business are presuppositions. With the right mindset, anything is possible,” Volkov asserts.

MANY OF US WOULD LIKE TO BE this person, but apparently we do not want to admit it. And who is this person? It is somebody who has left a managerial position for an expert position in the same organization. A lateral move, at best.

Right now, it seems the only people who can proudly make such a move are company founders who can step down from the CEO’s chair and move to those dreaded ‘special projects’ without anybody blinking an eye.

That is why we have a ghost in this space.

Except, these ghosts are real. People do move from manager to expert.

A Swedish university doctoral thesis from 2010 found gender differences in decisionmaking. When women left a manager’s position, they did it because they felt “pushed” out. In other words, they were not happy in the role. The men who left their management positions did so for opposite reasons.

They were pulled and motivated by the lure of a better work-life balance and an expert position.

PEOPLE MAKING A LATERAL MOVE are in the minority, so they stand out as different. And different, unfortunately, is viewed as suspicious, since we have been conditioned to going higher and higher (“straight up we’ll climb,” as Van Halen sang).

Making a move down, and talking about it, is even more difficult in organizations and organizational cultures that are hierarchical.

When there is no up or down, there is no good or bad, either. No quitting, no letting go.

IN SWEDEN, 200,000 MANAGERS are needed in the next few years, but nobody wants to be one of them. But it is not just Sweden, it is the new generation.

In a recent survey of almost 70,000 university students in 31 countries, only 15 percent said they would be interested in taking a managerial position. They would, though, like to work in a team. If being a manager is something young people do not aspire to, or something their peers do not want to do, either, then why is it so difficult to talk about such moves?

It may be difficult to find someone to discuss the issue now, but in twenty years’ time, we will find dozens and dozens of interviewees.

There is a ghost haunting this issue of Profile. It is a taboo subject, still too sensitive to be discussed in a “politically correct” conversation.

It is a subject we were unable to find anyone willing to be interviewed about.

We wanted to address the subject of lateral or downward career moves by employees who wish to get off the always upward treadmill so to speak, workers who perhaps leave management positions for expert positions or to work on a special project.

In lieu of an interview on this taboo subject, Profile would like to open up a discussion and invite our readers to air your views and feelings and experiences and exchange ideas on this sensitive issue.

Please join the discussion on our Facebook page at www.facebook.com/magprofile.

7

Working with

Knowledge Downsizing, rightsizing, reorganizing – a spade is still a spade.

Clouding the issue

O

If communication is the critical management skill, why do we cloud our meaning with empty ‘management jargon’? ne of the key inhibitors of organizational success has long been the lack of honesty between management and stakeholders.

As former General Electric CEO Jack Welch says in his book, Winning, lack of candor is “the biggest dirty little secret in business”.

Symptomatic of this all too common affliction has been the spread of managementese.

This is the buzz-laden jargon that is often used to hide or distort less palatable realities. For instance, ‘rightsizing’ is slowly replacing ‘downsizing’ in management circles. Social semiotics would suggest that the shift has more to do with avoiding the latter’s negative social associations than a nuanced assertion that rightsizing is a better form of downsizing.

W

hile one may be forgiven for thinking – as former Yale president Kingman Brewster Jr. once quipped – that “incomprehensible jargon is the hallmark of a profession,” management jargon is decidedly more problematic. It creates linguistic barriers where there should be none. The reasons for this vary, but most are used to satisfy the needs of the individual rather than to promote the success of the organization.

First, the business episteme is largely received through practical observations such as case studies orchestrated by business schools, consultants, and management gurus. The nature of this ‘reflexive knowledge,’ as the eminent human geographer Nigel Thrift termed it, means that dutiful managers must seek out and emulate the best practices. It is unsurprising then to observe the language of gurus sweeping through the organizational ranks.

It takes a brave soul to block such progress.

Likewise, the avoidance of the negative is a powerful force in business communications, and jargon can often add a positive

8

spin. Unfortunately, the effect can sometimes border on the bizarre or even the comical. An expression like ‘the new normal’ may sound like bold acceptance of a difficult new reality to the ears of management, but to an outsider it can sound Orwellian.

L

astly, culture plays a key role in the use of jargon. As Geert Hofstede and Michael H. Bond suggest in their long-term / short-term cultural orientations, many long-term oriented cultures rely on collective face-saving strategies, where jargon may offer a welcome relief for manager and employee alike. Some ‘actionable’ points: Honesty breeds success. When employees know honesty is an organizational merit, new ideas can percolate upwards. Limit jargon accordingly.

Know your audience. Jargon may sometimes be effective, but not with employees.

Run a reality check. Ask an outsider what the word means to them. Their responses may surprise you.

Clarity is truth. If you need to use jargon internally, make sure you define it.

Maurice Forget is a dynamic multitasker.

He is a graduate student in Applied Linguistics at the University of Leicester where he is working on a thesis on the use of language in business. He teaches English at Aalto University and the University of Helsinki.

In the workplace

We are all equal.

Right. Sure.

Feature 1 The myth of equality

Does equality matter to the brightest talents?

Do competitive go-getters care whom they beat in the race to the top?

TEXT: JOANNA SINCLAIR

company offering equal opportunity and a fast track for high potentials may sound like an oxymoron. Some may argue that having both is a myth, or claim it is a taboo to question whether equality and nurturing high potentials are complementary.

SOME PEOPLE ARE MORE EQUAL THAN OTHERS. Writing about taboos can make

for politically incorrect headings. What is your reaction to the above heading? Can you say something like that in print?

9

“Whenever a taboo is broken, something good happens, something vitalizing.

Taboos after all are only hangovers, the product of diseased minds, you might say, of fearsome people who hadn’t the courage to live and who under the guise of morality and religion have imposed these things upon us.”

- Henry Miller

10

Wake up and smell transparent communication in the era of social media. Not only can you say something shocking, you should. Taboos suffocate progress.

“There are many taboos regarding talent fast tracks. I would like to point out one very clear to us here at Aalto,” says Professor and Vice Dean Rebecca Piekkari from Aalto University.

“Our students are a carefully selected group.

They are highly motivated and extremely well educated upon graduation. Yet when they start sending out their CV’s, many students of Russian origin have an exceedingly difficult time landing their first job.

It is a disgrace,” Piekkari says.

Many consider Finland to be the poster boy for equality. Surely Finns do not discriminate against Russians? Piekkari must be mistaken. End of story.

THE MYTH OF SELF-ORGANIZING DIVERSITY.

Understanding organizational myths and taboos is never easy. It proves a slippery slope to tackle as few taboos are openly debated.

McGill University’s Lisa Cohen is known for her research on how jobs and work are structured in organizations. According to Cohen, one of the clearest taboos regarding talent, fast tracks and equality, is equal compensation and opportunity for equal merit.

“I do not believe that talent fast tracks are the way to go – it sends a rather demotivating message to the 95 percent of employees left out. If an organization is determined to take this route, it should be meticulous in the manner that it makes decisions about who qualifies as high potential talent.”

“We operate day to day in a maze of myths. We assume that the world of work is a true meritocracy and expect that the organization of that work is dictated by what is economically efficient. This is hardly the case.”

Cohen cites research a colleague conducted a few years ago. When looking into reward systems in a large organization, he found that managers gave women and men unequal cash bonuses for the same talent assessment results.

“It was a significant, if not striking difference.

On average nine thousand dollars went to the women who received top scores and ten thousand to the men who received the assessment.”

“When looking at these findings, it is important to question why something happens. In this case – as is often the case – the unequal treatment was by no means deliberate. Managers were surprised when they were presented statistics on their own decisions,” says Cohen.

Cohen has many other similar examples, all pointing to a myth of inherent fairness. For some reason many organizations assume that people will naturally act fairly, even if they are not shown how to do so, or held accountable for their actions.

“Research suggests that making sure employees know they will be held accountable for discrimination generally has a more positive effect on equality than diversity programs.

There is one clear solution for organizations looking to improve their equality: accountability, accountability and accountability,” Cohen asserts.

MANAGERS PREFER HIRING MINI-MES.

Individual talents are often best managed from a slight distance; champions rarely appreciate someone hovering over them. Yet when it comes to managing diversity, it seems that close, hands-on leadership is a necessity.

“The benefits of diversity follow a U-shaped curve. As the organization becomes more diverse, efficiency, innovation and results are the first to go up. Without leadership, the benefit curve will start to go down after a while. One should never assume that organizational diversity is an issue that will self-organize,” Piekkari explains.

The fact that people need guidance and help in getting along with other cultures, personality types and generations is both a well-acknowl-

[CASE 1] edged fact and a completely ignored point, even a taboo. We may hate to admit it, but we are not naturally inclined to work together with people who are different from ourselves. It is a challenge and a skill that we need to learn.

Piekkari points out that without guidance, many managers tend to hire individuals that remind them of themselves.

It is not something people necessarily do purposefully or even realize, but it is an established and well-researched fact that hinders organizational development.

GOING FROM THE UNTHINKABLE TO THE INEVITABLE.

Organizational myths and taboos evolve. A much-quoted hypothesis of Laura Liswood, Secretary General of Women World Leaders, explains the stages of change.

“Change is a funny thing. It goes from the unthinkable, to the impossible, to the inevitable. You just have to make your way through that.”

Liswood’s notion takes us from taboo [unthinkable] to myth [impossible] and finally to a new reality.

What kind of changes should we expect when it comes to talent fast tracks? They seem to be here to stay. In their article, “Are You a High Potential,” (HBR 2010), Ready, Conger and Hill looked at a small but exemplary sample of 45 companies. Their study revealed that 98% had a high potential list. Some lists were openly acknowledged, others were kept secret. Yet there was a list in 44 companies out of 45.

Businesses are entitled to list high potentials. However, to ensure they are optimizing these lists, they should not talent pick from a pool distorted by prejudice.

Equal opportunity is easy to assess.

Simply compare the fast track talents to the firm’s general demographics and if possible, the background information of everyone who has applied for a position.

Is there a disparity? If not, you are not wasting talent and sacrificing efficiency because of myths or taboos.

Metso nurtures talent Equality cannot be a myth or taboo in a multinational company, asserts Hilkka Alatalo-Korpi, Vice President of Talent Management at Metso.

It is the company’s job to ensure processes are set up in such a manner as to make discrimination impossible.

A GLOBAL SUPPLIER OF TECHNOLOGY and services for the mining, construction, power generation, oil and gas, recycling, and pulp and paper industries, Metso employs approximately 30,000 professionals around the world and is constantly looking for high potentials for its talent fast track.

An interesting aspect of Metso’s talent hunt is the strong emphasis it puts on transparency and fairness.

“There are many reasons for this. First of all, we are competing for the best. We simply cannot afford to miss Hilkka Alatalo-Korpi out on a single high potential. With an organization as Vice President of Talent Management big as ours the only way to be certain things are done Metso right is to establish set talent management procedures that prevent discrimination,” says Alatalo-Korpi. “Another reason is, of course, employer brand. We can see from our career pages that potential recruits go and read our sustainability report along with checking open positions. On a similar note, during interviews more and more potential talents ask about work-life balance. It is a rising trend.”

Alatalo-Korpi compares employer brand to an apple – you cannot claim to be fresh and shiny on the outside if you are not good right down to the core.

“Moreover, social media has made everything transparent. The best idea for business is to do well, do what is right, and people will talk about you,” Alatalo-Korpi adds.

EVERYONE IS A TALENT. Metso managers look at several factors when screening for high potentials. In addition to ability, they assess an employee’s eagerness to learn, the employee’s drive and what the employee aspires to achieve in life.

“We put a great deal of emphasis on engagement and passion. It is more than just commitment. It means looking at the bigger picture, sharing your own knowledge and making sure everyone shines. It is a motivation to do more; show resilience during hardships and have the strength to keep going,” Alatalo-Korpi says.

She points to one value that guides and underpins all actions at Metso: talent pipelines for high potentials aside, everyone is a talent. The HR department and each employee’s closest supervisors need to ensure that everyone is given the opportunity to learn and develop professionally.

“Each year of your career should be different. HR must ensure both vertical and horizontal career paths and give everyone the opportunity to continuously learn. It is not always dancing on roses; we all know learning can be hard, but it is rewarding. My dream is that everyone here at Metso comes to work each morning feeling enthusiastic and thinking, what can I learn today?”

11

[CASE 2] IBM Singapore:

Diversity drives talent IBM Singapore invests heavily in developing their “software,” the IBMers. Talent development is a vigorous process involving a multitude of programs and investments with great emphasis on creating global leaders and promoting diversity.

“IBM has a progressive policy of diversity.

We promote women in the workforce and advocate an environment of collaboration and exposure with a variety of backgrounds, nationalities and international work experiences. We also strongly encourage persons with disabilities to up-skill and develop professionally. In Singapore alone, we have diverse teams of talent comprising over 30 nationalities as well,” says Charmaine Sim, IBM Singapore HR leader.

At IBM, diversity links tightly to talent management. “We identify and nurture potential leaders through various programs, both country specific and global ones. IBM Singapore also has mentoring, career advancement programs and initiatives aimed at developing the global leader.

We have established high value global centers of excellence, labs and hubs to provide IBMers with opportunities to develop skills and gain regional and global experience,” Sim emphasizes.

Sim adds a reminder that hand in hand with providing equal opportunities, a company must take care not to demand a disproportionate amount of work from anyone.

“IBM’s focus on work-life integration is one of the primary reasons why IBMers work and remain in the company.”

Sim makes a good point. Work-life integration should never get lost, not even when dealing with the brightest stars heading straight to the top.

12

An Ambassador speaks

Equal emphasis on competition and equality rofile spoke with His Excellency, Ambassador of the Republic of Korea to Finland and Estonia, Mr. Dongsun Park, about equality, education, and opportunities for learning between Finland and Korea.

Ambassador Park starts with praise. He asserts that from the Korean perspective, Finland is a leading country in equality and a model for others to emulate.

Park sees many opportunities for reciprocal learning between Finland and Korea.

“Finland seems to emphasize equality more than competition. Korea puts a more or less equal emphasis on competition and equality. These slight differences are reflected in the education systems of our two countries, yet both the Korean and Finnish education systems have proven to be very successful, as the most recent PISA study shows,” Park explains, in reference to Finland and Korea taking the top two places in the latest PISA study.

“The fact that Finland achieves such world class results in learning performance with an equality-emphasizing system fascinates Koreans. That is why Korean experts frequently come here to learn about the Finnish system.

If we study each other’s education systems and adopt the best practices from both, we can become even better,” Park envisions.

“Finland is a good example of a society able to achieve a high level of economic competitiveness while putting a strong emphasis on equality.

This also fascinates Koreans,” Park adds.

Ambassador Park names Korean competitiveness as a key feature that might interest Finns. He also brings up openness towards receiving more immigrants as a possible solution to a decreasing population, which is a pressing Mr. Dongsun Park concern for both Korea and Finland.

His Excellency, “Korea puts an equal emphasis on competition Ambassador and equality, which I think is a key feature of of the Republic of the Korean system, and has arguably enabled Korea to Finland the Koreans to become globally competitive in and Estonia electronics, IT, cars and other sectors.”

“Korea used to be more monolithic, but today Koreans are welcoming a lot of immigrants to cope with the decreasing population. This might also be interesting from the Finnish perspective.”

Ambassador Park ends by drawing attention to the EU. “The EU has achieved harmony across 27 nations and enables the free mobility of goods and people across frontiers. This kind of development is certainly interesting to study from the Asian point of view. Korea is currently promoting an Asia-Pacific Community which might incorporate some similar elements and inspirations,” Ambassador Park concludes. y

The past and future of Finnish equality Laura Kolbe, Professor of European History at the University of Helsinki, cites two main reasons for Finland’s good name in equality so far: poverty and equality in education. She prefaces her thesis with a joke.

“Finnish mothers have always told their daughters to get a profession, for three reasons: your husband will either A) die on the battlefield B) become an alcoholic or C) there is no husband to be found. So make sure you have a livelihood of your own,” Kolbe quips.

Kolbe moves on to explain how survival and poverty have built a nation that relies strongly on providing equal opportunities.

“Finland never had the means to keep a class of ladies of leisure. Everyone had to chip in to make ends meet, even women from the very highest social strata. Poverty is one reason for Finland’s current equality; the other great equalizing force is our education system.”

Kolbe speaks fondly of the Finnish peruskoulu, a system designed to give every child between the ages of 7 and 15 a solid education completely free of charge – and a free lunch on school days. “Established 40 years ago, peruskoulu was a great achievement for Finland and is still something Finns should take great pride in as a nation,” Kolbe affirms. ”Yet, the equality that stems from the current system is not foolproof.

Family background clearly affects choices; some people make much better use of the system than others.

Children with highly educated or otherwise well-off parents make their way through our free education system much more often than the offspring of less priviledged families.”

“But in principle our strength lies in the fact that we do not automatically stop anyone from trying.

Everyone has a fair chance to give life their best shot, despite background, class or income.

In Finland anyone who has the talent can become a doctor, a lawyer, a teacher, whatever they choose – practically free of charge,” Kolbe says.

WHO CARES WHERE YOU COME FROM, WHAT DO YOU DO?

Making the most of education is no small thing. For future generations, it may well be a decision that builds identity more than anything else.

Kolbe brings up a notion she calls “heimoistuminen,” which translates roughly into our tendency towards forming occupational or professional tribes. Today, occupational identity is especially strong among global professionals.

As the world gets smaller, what you do for a living may well have a greater impact on your life and identity than anything else, including your home country, class or religion.

“A biologist recognizes and feels a kinship with another biologist no matter where they are from. The same applies to doctors, historians, and so on. Our identity is more and more defined by what we do for a living.” Kolbe points out.

“Could this trend decrease the overall meaning of, for example, national identity to people in the long run? Perhaps. But it may also decrease discrimination based on things such as age, gender or heritage. Time will tell,” Kolbe summarizes. y

“Family background clearly affects choices; some people make much better use of the system than others.

Children with highly educated or otherwise well-off parents make their way through our free education system much more often than the offspring of less priviledged families.”

- Laura Kolbe

13

Bea

be

It takes guts, a thick skin, belief in oneself, and maybe even a touch of madness to be a great leader.

Feature2 The taboos of leadership

14

IF YOU DO NOT VIEW YOURSELF AS SPECIAL, NO ONE ELSE WILL EITHER.

Manfred Kets de Vries

“A certain amount of self-love and self-belief is necessary to prosper in corporate life,” says Dr. Manfred Kets de Vries, Clinical Professor of Leadership and Organizational Change at INSEAD’s Global Leadership Center and one of the world’s foremost leadership thinkers. This ‘constructive narcissism’ contributes to assertiveness, self-confidence, and creativity – all highly desirable qualities in a business leader. A degree of narcissism – an egotistical streak – gives focus and direction. “People who achieve things have to be somewhat narcissistic, or they would not be motivated to excellence,” says Kets de Vries.

Leaders plagued by doubts are unlikely to find followers. If leaders believe in their own abilities, the more likely it is others will follow them.

Leadership requires faith in the leader by those under their command.

“The first task of any leader is to act as a merchant of hope,” says Kets de Vries. Leaders set an example and demonstrate a clear vision of where they want the organization to go. Without some level of self-aggrandizing belief in the importance of their own ideas, this would be a virtually impossible task.

Ant hon y F.

Pekka Mattila

east

Sm ith

autiful “A completely selfless individual would find it extremely difficult to cope with the rigors of leadership,” says Dr. Anthony F. Smith, cofounder and managing director of the Leadership Research Institute and author of The Taboos of Leadership. It is virtually impossible to face up to the demands of leadership without internal drive that confirms that you are the best.

For an executive or manager to be effective, however, they must not be excessively narcissistic.

“There are, of course, leaders who are driven by their own sense of superiority, those who think that the people they encounter along the way are simply a means to an end,” says Dr. Pekka Mattila, Adjunct Professor of Practice at Aalto University School of Business, Group Managing Director & CEO at Aalto University Executive Education and a specialist in strategic marketing and change management.

“These overly narcissistic leaders usually make it to the top positions in organizational cultures where there are no checks and balances in place, where the focus is on outcomes and not ethics, integrity or procedures.”

TOCK , PHOTOS: SHUTTERS TEXT: CHARLIE BASS

15

a l l a e r a We . y z a r c t i b little THE MOTIVATING POWER OF SELF-INTEREST

E

very leader, even those uninterested in money or power, is motivated by some selfinterested goal. These goals can be positive, even heroic, based on a higher order or purpose driving them forward. They are commonly seen in entrepreneurial executives or leaders in public administration where the journey to the top is long and the rewards, at least the financial rewards, pale in significance to their corporate counterparts.

Passion and purpose energize these people, giving them the ability to motivate others, convincing them they are serving the greater good, and thus ensuring they all row in the same direction. “Selflessness is a form of currency,” says Smith. “In situations where there are not billions of dollars at stake, there has to be some other currency that attracts the people you want to work for you and keeps them committed to the cause.”

The belief in a cause engenders magnetism and charisma and provides the irresistible spark that lures others to you and makes them fellow believers. While it may be lonely at the top and a certain distance may be necessary to maintain the requisite authority, leadership is still unquestionably a team sport.

“Truly successful leaders are always supported by a successful executive team,” Kets de Vries says. And the moment you reach the top, even if you do not yourself project 16

charisma, people will see it in you. It comes with the projection of leadership. Charisma is not to be confused with talent, however.

When surrounded by sycophants the leader can lose sight of what is best for the organization.

CAN YOU FACE YOURSELF IN THE MIRROR?

M

ore and more of today’s leaders are willing to engage in self-reflection, often in the form of executive coaching. This preventive medicine helps to maintain the checks and balances necessary to a healthy and productive leadership style.

It keeps leaders in touch with their emotional intelligence.

Tools such as 360-degree feedback have become the weapons of choice in the quest to develop better, healthier leaders. These tools give them the opportunity to hear what those around them really think and feel about their leadership style and personality. It can be a major wake-up call, forcing a leader to accept shortcomings and reflect on how to improve their management style.

However, the success of this method relies on the leader’s desire to develop, a willingness to accept and process feedback,

and the ability to act on it. It requires them to understand that the people providing it are individuals whose thought processes, perspectives and methods of handling information differ from their own. The best leaders acknowledge and appreciate these differences and accept that direct feedback from those around them constitutes a valuable and necessary input to the self-improvement process.

“The willingness and ability to adapt is actually the sign of a healthy leader,” says Kets de Vries. “Reflect on your actions and act on the information. This will have huge benefits for the organization – the best leaders are reflective practitioners,” he continues. For 360-degree feedback to be truly successful, honesty is the best policy: self-awareness and candor from recipients, honesty from respondents, and an open organization culture.

Kets de Vries also says that those who accept the madness in themselves may be the healthiest leaders of all. “We are all a little bit crazy. The best leaders are highly motivated to spend time on self-reflection. Their lives are in balance, they can play, they are creative and inventive, and they have the capacity to be nonconformist,” he says.

While feedback from peers is a powerful motivator, it is often events in their personal lives that are the real drivers of change.

Significant events as divorce, a health scare, or negative comments from partners and children are highly likely to be a springboard to self-improvement and better leadership.

FROM SELF-BELIEF TO SELF-DOUBT

T

he flipside of self-reflection is when leaders have the facts in front of them and find that they do have shortcomings, are not invincible, and may even be perceived as inadequate to the position they hold, it can be an enormous psychological blow. One would be hard pressed to find a leader who does not experience some self-doubt and feelings of insecurity at some point in their career.

The pressures at the top can lead all but the steeliest to question whether they really deserve to be where they are, whether plaudits and rewards they receive are merited, and even whether they might, in fact, be a fraud. If you run a company with hundreds of thousands of employees, it is natural to ask if I really deserve this.

“You would be very unusual if you felt otherwise,” says Kets de Vries. “But you would have to be quiet about it, because if anyone found out you felt like an impostor, they would question why you were there.”

ALL THE WORLD’S A STAGE AND ALL THE LEADERS MERELY PLAYERS

E

motionally, leadership is extremely taxing, but the stress is unseen to outsiders.

“Leaders of multinationals are of course under huge strain, but credible, composed leaders have learned to mask this,” says Smith.

Mattila agrees, “They adopt the ‘do not let them see you sweat’ attitude, putting on a façade in order to send out nonverbal and verbal signals that say ‘Hey, everything is going to be OK, just believe in me and believe in what we are doing.’ In this way, the leader is also an actor. On the red carpet they may shine in public, putting on a confident face and masking the stresses and strains, even hiding their self-driven motivation from the people around them, convincing others that they are ultimately there to serve them and the organization. Leaders often have the ability to camouflage their real motives with a sense of obligation. A lot of management is theater,” says Mattila.

“Leaders are on stage all the time and there is sometimes a certain amount of exaggeration in terms of how noble their goals are.”

PL AYING FAVORITES, PL AYING POLITICS

W

hile publically leaders may deny they practice favoritism, it is so basic to human nature that it is essentially unavoidable.

When the buck stops with you, you naturally turn to the people you trust and rely on. Favoritism may be taboo, but it is a necessary evil.

“The best leaders are talent-spotters, gifted at assessing an individual’s skills and abilities,” says Smith. “It is this that helps them choose the right team for a particular

project or task,” he says. Leaders rely on their favorites, but this is not a negative if their talent assessment skills are up to the challenge.

Playing politics is another leadership taboo.

According to Smith, the most successful leaders play the politics game to the degree necessary to accomplish their goals. Outstanding leaders who sustain leadership over time are driven by their vision, desire to achieve their aims, and do what they think is right. They need to play the game, even if they’re uncomfortable with it, to change the game.

HERO, SERVANT OR EGOTIST? WHO MAKES THE BEST LEADER?

I

n reality organizations need all three traits in their leadership. Depending on where an organization is in its natural evolution, the leadership style that best serves its needs will change.

Sometimes a heroic, trailblazing visionary is needed to kickstart a new strategy or reboot a failing one. At other times a selfless servant willing to do whatever it takes to push the organization forward is what is called for, and sometimes a charismatic, driven egotist with the power to lure others to the cause, instill belief, and fire people up for the challenges ahead is what is required.

The talented leader can adapt their style to fit the needs of the organization. The problem is we do not live in a perfect world.

While undoubtedly talented and driven, leaders are as human as the rest of us. t 17

3 e r u c t ne FePearfect bala

L

t

18

Life L

outside tthe office?

TEXT: SATU RÄMÖ, ILLUSTRATION: KATI RAPIA

Is it time to lift the taboos and revisit the myths of balancing career and family to allow organizations to tackle this thorny issue? Understanding the need for flexibility and the certainty that one size does not fit all are key.

EVERYBODY’S LIFE IS DIFFERENT. We all have different needs when

it comes to combining and juggling work, family and free time in our daily lives. Lifting the taboos and addressing the myths surrounding these issues, especially from the organizational perspective, can be liberating and can lead to happier and better-rounded employees and greater productivity.

At Borenius & Co, an intellectual property rights advisory firm, one of the most important values is being humane. ”It means respecting individuals and caring for others. Everybody has the possibility to make arrangements that increase work flexibility,” says CEO and partner Karri Leskinen.

Last spring Leskinen decided to take a break from work and stay home to take care of the family’s 2-, 4- and 8-year-old children.

“It was a great decision both from a family and work perspective.

When you are having a total break of several months from work, you actually feel you are on a break. It is nothing like the four-week summer holiday typical in Finland. I think these kinds of arrangements can be very good also from the perspective that people will have more energy to work longer and more effectively.”

19

You do not need to have children to be able to enjoy flexible arrangements. In Finland, studying or taking care of your elderly parents can also be grounds for an 80 percent work week. ”Living according to the value of being humane requires a lot from the organization. People can easily get the impression that some enjoy more freedom than others. It is important to realize that we have different needs at different times,” says Leskinen.

TELECOMMUTING, CHILD CARE ASSISTANCE. The means Borenius & Co utilize in helping their employees find a better work-life balance are traditional yet commonly used methods.

People can work flexible hours. Telecommuting is common.

Virtual desktops make it possible to continue a project from home that was started at the office. If a child falls sick, parents can stay home for four days per child for each illness. If you fall ill, your full salary is paid for 75 days. The annual vacation entitlement is six weeks.

The company has an extensive substitute system. Everybody has three backups who will step into the project if someone falls ill or cannot come to work. ”When something exceptional happens in one’s life and more flexibility is needed, you don’t have to worry. It will be sorted out,” says Marjukka Hausalo, Financial Manager at Borenius & Co who also handles the company’s human resources.

Flexibility creates challenges, especially when many people are out of the office at the same time. ”Summer vacations are challenging times for recruitment. Becoming a professional in patent issues usually takes years, and many of our professionals have been working with the same clients and projects for quite a long time.

This means that we cannot really hire summer assistants. There would not be enough time to train people,” Hausalo says.

Glassdoor, a leading jobs and career community in the United States, compiles an annual ranking of companies that offer the best balance between work and personal life. The top five companies of 2012 are MITRE, North Highland, Agilent Technologies, SAS Institute and CareerBuilder.

Glassdoor board member Rusty Rueff emphasizes that highlighting the importance of a good work-life balance gives companies a significant competitive advantage: “Companies that make sincere efforts to recognize employees’ lives outside of the office will often see the payoff when it comes to recruiting and retaining top talent.”

WE ALL HAVE LIVES OUTSIDE THE OFFICE. Deloitte is one of the world’s leading professional services companies where success-driven young professionals take a job after graduation and often work long hours. The average employee at Deloitte is 35, which means the majority of the staff are in some of the busiest years of their lives. In order for the organization to remain dynamic, it has to offer a variety of tools for its employees to balance work with life’s other dimensions.

Deloitte has 182,000 employees in more than 150 countries.

Businesses are locally driven: Deloitte’s partners in each country own the practice in that particular country.

Generally speaking Deloitte’s global culture supports telecommuting and other flexible solutions. In practice the operations and culture of each organization have a local foundation.

“I see Finland and other Scandinavian countries, Great Britain and The United States having quite similar views on these issues. In these countries Deloitte for example offers many tools to make telecommuting possible,” says Kirsi Lehto from Deloitte’s Human Resources.

For example in Southern Europe, Asia and India the work cultures are still pretty much based on the idea that people work at the office.

“Local culture and the corporate culture do not really conflict since Deloitte’s culture is a combination of many local cultures,” says Lehto.

In Finland Deloitte has increased the opportunities to work from home. ”Just recently we renewed our telecommuting policy. You can work from home without asking the supervisor’s permission.

It is enough to mark it in the Outlook calendar and inform your closest supervisor and colleagues.”

Timetables for starting and leaving work are flexible. If a child falls ill, Deloitte arranges for a nanny if the parents wish it.

Parents can also stay at home with their sick child for three days.

“Flexibility not only benefits employees with children. Some people might, for example, have a lifestyle that requires more free time. If somebody wants to have a break from work and travel around Australia for a while, then we just try to arrange it.”

In professional services companies time frames are set by clients’ projects and timetables.

“The most challenging part is to recruit the teams. When there are many team members doing, for example, a 70 or 80 percent work week, it sometimes becomes a puzzle to recruit for different projects. We have to somehow manage employees’

Living according to the value of being humane requires a lot from the organization.

VALUED FLEXIBILITY. The CEO’s absence naturally required

arrangements at Borenius & Co. In addition to his CEO role, Leskinen’s work includes Finnish and international patent applications in the field of chemistry, specializing in inventions in the food and process industries. While Leskinen was away from the office, the rest of the organization had to work harder.

The CEO’s duties were delegated to different people based on their fields of expertise. ”I told people they could call me. My phone rang only five times during the five months I was away. The organization was doing just fine without me.”

The CEO’s few months of parental leave sent a clear message to the organization: everybody can benefit from the flexible arrangements and everything will be fine.

For several consecutive years, Borenius & Co has dominated the top of the small organizations’ category in Finland’s Great Place to Work Institute’s rankings.

“Flexible solutions support employees’ wellbeing and work satisfaction. Apart from a few exceptions, people have long careers with us,” Hausalo sums up.

20

personal solutions and choices with the content and timetables of a client’s project. It is not always easy to find a balance,” says Lehto.

HORIZONTAL CAREER MOVE. Consultants and project managers involved in client projects are usually dependent on clients’ timetables. When you work mainly inside the company in a supportive department, there is more room for flexibility. Career changes, for example, moving from an HR or IT consultant’s role to the company’s own HR or IT function is one possibility to increase flexibility at work.

Lehto has a double role at Deloitte. She works as HR Business Partner in one of Deloitte’s units and manages the Assistant Services team.

As the Manager of the Assistant Services team, Lehto currently leads some ten assistants. Two are on parental leave, two are working part-time and two are taking time out for their studies. Lehto has hands-on experience in balancing work and life’s other dimensions: she has a three-year-old child. The opening and closing times of the kindergarten set her workday frames. ”I decided to go for a 100 percent work week instead of a shortened week, but I am pretty strict about not spending long days at the office.

Even though companies offer a variety of tools for employees to manage their daily lives, employees have responsibilities, too: they have to draw the line themselves. One size does not fit all. ”It takes some time to learn to say no if you have to refuse to add a new task to your work list. Or to say, OK, I will do this, but it will take X amount of time before it is done.” t

Expatriate work Expatriate assignments have gotten shorter. On the other hand various types of shorter international assignments and business travel have increased. This new situation comes with its own challenges.

ONE

of the most fundamental changes in a global work environment is a blurring of the lines between what is considered work abroad and what is not when a lot of the time is spent on short-term assignments abroad and traveling. ”Combining work and leisure is extremely difficult in these employment models and not a lot of research has been conducted on this topic. Companies are unsure of how to deal with the issue or what to pay attention to,” says Dr.Sc. (Econ.), Adjunct Professor at Aalto University Marja Tahvanainen, who also runs the consultancy company IHRM Liaison, which specializes in research and consulting in the area of international human resource management.

Different time zones, constant travel and work piling up on the desk during travel days make workdays irregular.

A large proportion of those traveling the world are between 30 and 35. They are at the busiest time of their lives and are juggling multiple responsibilities: starting families, climbing the career ladder and pursuing active leisure activities.

ANY ADVICE? ”People should be able to have some say in their travel itinerary. It would also be good if people had time to recover from travel.

If the business trip has been quite long, people should not be expected to rush to the office the next morning,” says Tahvanainen, who shares a good example of one of her client companies.

The company’s employees working on maintenance issues spend between 100 and 200 days a year traveling. At times it takes over two days of travel to get to the destination.

To support the employees’ wellbeing a system has been put in place, under which after three weeks of travel, one week is spent at home. ”People hold on to this tightly. The organisation has set itself a sanction that if the person on a one-week leave is being called to work, the first hour is paid as overtime. That is an excellent motivation for sticking with the system.”

21

1

TEXT: SATU RÄMÖ

EFFECTIVENESS as a leader is often measured in quantitative outcomes. It is our ability to reflect on our relationships however that makes these goals achievable.

“Relationships represent a unique strategic resource and the primary source of emotional capital in an organisation,” says Martyn Newman, Ph.D, D.Psych, author of the international bestseller, Emotional Capitalists – The New Leaders and the Emotional Capital Report, the world’s first scientifically designed tool for measuring emotional intelligence and leadership.

What is the best way to communicate a difficult message? How do I persuade someone that his argument is faulty? These are complicated issues that require sophisticated relationship skills and a high degree of empathy.

“Just like technical skills that are used to solve problems or create products, emotional and social skills have a structure and a set of behaviors that when combined can solve emotional and social problems.”

Newman works with senior executives in blue chip companies, many of whom have highly developed technical and commercial skills, but who may lack the necessary emotional and social skills.

”First we benchmark their emotional skills. Once they begin to focus on developing these skills, the improvements in performance are measurable and impressive.

We have seen enormous gains in emotional intelligence of more than 19 per cent in a few months and equivalent gains in productivity and engagement scores as a result,” says Newman.

Dr. Martyn Newman is a Consulting Psychologist and Managing Director of RocheMartin and author of Emotional Capitalists – The New Leaders. John Wiley & Sons, 2008

HOW AM I DOING? (AM I DOING ALL RIGHT?)

ANYONE CAN BECOME AN EMOTIONAL CAPITALIST. “Major

breakthroughs in neuroscience have destroyed the myth that you cannot teach an old dog new tricks. Our brain has a plastic quality and it continues to adapt and change in response to continued practice. We can continue to develop new skills even as we age.”

Newman thinks a leader’s single most important job is to inspire people with a vision of the future.

“To achieve this, a leader needs self-confidence, a belief in your ability to rise above the pressures of the external environment and the artificial limits the environment threatens to place on you. Making the decision to like and believe in yourself and your ability is the surest way to generate the emotional energy necessary for sustained success,” asserts Newman.

Become an emotional capitalist

We lead through our relations with others. Before you can lead other people successfully, you must know yourself. Build your emotional capital, train your brain, and remember to laugh a little.

4 2 GEOFFREY WEBB works as a Principal Consultant with a global business execution company McKinney Rogers. In his blog Webb writes enthusiastically about reflective leadership and gives practical tips on how to grow as a leader.

Stephen R. Covey.

The 7 Habits of Highly Effective People. Free Press.

1989, revised edition 2004.

The 7 Habits of Highly Effective People is one of the bestselling business books of all time. The author, the late Professor Stephen R. Covey, was the founder of a leadership consulting and training company Franklin Covey whose clients today include 90 percent of the Fortune 100 companies.

“75 PERCENT of our job success is predicted not by intelligence, but by optimism. You can train your brain to be happier.”

Shawn Achor, CEO of Good Think Inc. ted.com/talks/shawn_achor_the_ happy_secret_to_better_work.html

3

geoffreywebb.com

THE SEVEN HABITS ACCORDING TO COVEY t Be proactive. Your decisions are the primary determining factor for effectiveness in your life. t Begin with the end in mind. Create a mission statement. t Put first things first. Prioritize, plan, and execute your week’s tasks based on importance rather than urgency. t Think win-win. Value and respect people by understanding a “win” for all is ultimately a better long-term resolution than if only one person in the situation had gotten his way. t Seek first to understand, then to be understood. t Synergize. Get the best performance out of a group of people through encouraging meaningful contribution. t Sharpen the saw. Balance and renew your resources, energy, and health to create a sustainable, long-term, effective lifestyle.

Laugh. It inspires productivity.

Leader, read this blog You can use Toolbox materials at work or when giving a presentation, link them to your blog or forward the entire Toolbox to your colleagues. The background ideas are available in a variety of web sources.

The Seven Habits of Highly Effective People As slides: www.slideshare.net/AaltoEE In pdf format: www.scribd.com/AaltoEE

The whole magazine: www.issuu.com

23

MAN’S BRAIN HAS GREAT LEARNING POTENTIAL. You can activate new neural networks by doing new things. As individuals we gain different knowledge and skills, and when several active brains come together, the overall potential increases. An organization’s collective human brain potential is a huge asset that has a major effect on the organization’s success. The question is how to best take advantage of that potential.

One way to train the brain is to learn to do new things. Go wild and try something new: play the piano or play chess, paint or learn the rules of football.

Työterveyslaitoksen valokuva-arkisto

5

PEOPLE CAN TRAVEL BACK AND FORTH in time in their minds, they can examine issues from different perspectives and zoom in to check details or take a look at the big picture.

The brain is an extremely complicated organ with great potential. It is often said that we only use 10 per cent of our brain potential. This is not the whole truth, says Kiti Müller, Director and Research Professor at the Brain and Work Research Centre at the Finnish Institute of Occupational Health.

“The brain has a numerous amount of brain cells and neural networks. We now know through functional brain imaging that information processing, underlying thinking, activates neural cells in several different brain areas.

On the other hand, specific areas of the brain specialize in handling certain types of sensory cues. Due to the specialization of neural cells, the myth of using only 10 percent of our brain’s actual capacity has more to do with the fact that certain activities activate specific neural networks and others are in a more resting state,” she explains.

Different neural network structures become active in different situations. The areas most used get stronger.

The parts not actively used, on the other hand, are somewhat dormant.

“Even if the new exercise activates certain regions in the brains, for example, painting activates the areas that process visual information, the benefits of learning new things ‘leak’ into the other regions as well,” Müller says.

Learning something new pays off.

It gives new perspectives and encourages us to think differently. If you do not use your brain, it will stiffen. However, Müller encourages people to set themselves limits.

“The brain likes reasonableness.

Do not try to overachieve in learning new things.”

When the brain is exhausted it starts to do routine things which means that creativity and problem solving start to suffer.

HOW DOES ONE KNOW IF ONE’S OWN BRAIN IS OVERHEATING? ”That is a good question. People react differently. Some of us cannot relax.

If you find it difficult to be quiet and do nothing, it might actually be a sign of exhaustion. Exhaustion of the brain can also express itself as anxiety, feeling blue or a desire to be alone and avoid meeting other people.”

Taking care of your brain’s wellbeing is rather simple, but often hard to put into practice: work out, eat well, do things that you enjoy and devote time to recovery.

After running a marathon you do not run another marathon the next day. The same logic applies to business. Between busy projects, take some time off. Relax.

Take care of your brain

6 CHECK OUT http://www. slideshare.net/ cdterrell/360degreeleadership

7 THE SMALLER THE DISPARITY between our self-image and reality, the more likely we are to experience inner peace. If there is a gap between how you perceive yourself and how your employees see you, your effectiveness as a leader will be diminished. How do other people feel about your leadership behaviour?

CHECK OUT Find out by taking this quick test: dkmanagementtools. com/free-leadershipself-assessment-tool

Test your leader behaviour

YOU

do not have to be the top person to exert influence in your organization. If you influence even one person, you are a leader.

Leadership is not a title or a position, says pastor and business author John Maxwell in his bestseller The 360 Degree Leader. In his book Maxwell explains how you can make a significant impact on your organization. Lead people beside you, below you, and above you – 360 degrees!

John. C. Maxwell. The 360 Degree Leader. Nelson Business.

This book expands your influence

25

Follow Aalto EE

MORE UPDATED INFORMATION www.aaltoee.fi, www.aaltoee.sg

E AT READ MOR EE.FI O LT WWW.AA

Aalto EE rides a high wave to the top

Aalto University Executive Education continues to break new ground. Right after Sweden now comes Russia and a strategic partnership agreement with the Graduate School of Economics and Management (GSEM) of Ural Federal University in Yekaterinburg.

“AT THE HEART of Russian industry, Yekaterinburg is a natural destination for Aalto EE. The agreement gives us a foothold in one of the largest economic regions in Russia. We have also set our sights on the St. Petersburg market,” says Dr. Pekka Mattila, Group Managing Director and Associate Dean of Aalto EE. The agreement covers management programs such

as Executive MBA, as well as executive and customized programs offered by Aalto EE. The partners intend to launch the first joint training programs later in 2012.

With its 1.4 million inhabitants, Yekaterinburg is Russia’s fourth largest city. GSEM is the largest business school in the Ural economic region, one of the fastest growing economic zones in Russia.

UPDATE

UPDATE

Aalto EE opens in Russia

ACCORDING TO A RECENT SURVEY, Read more at ww Aalto University Executive Education is the best provider of management education services in Finland. Respondents found Aalto EE to be particularly competent, reliable and consistent over the long term. They also thought it had the best trainers and the most effective teaching methods, as well as the ability to reinvent itself.

Dr. Pekka Mattila, Group Managing Director and Associate Dean of Aalto EE, compares an MBA degree and its provider to a tattoo. There are questionable degrees, safe but average degrees and elite degrees offered by top schools. “Who wants a tattoo from a cheap beach bar? You will carry—or try to conceal—that tattoo for the rest of your life. Much in the same way, an MBA follows you for the rest of your career. If you want an international career in business management, a high quality MBA from a widely recognized institution will open many doors,” says Mattila.

Networking and co-learning during the Aalto EMBA International Week CLOSE TO 100 PARTICIPANTS from around the world – Poland, South Korea, Singapore and Finland – came to Helsinki in August to take part in the Aalto Executive MBA International Week.

The iWeek is organized as part of the Aalto EMBA program.

During the week, participants can complete elective modules towards their EMBA award.

The week also offers opportunities to network with fellow participants and absorb the wisdom of business leaders and other experts. iWeek puts a strong emphasis on teamwork and interaction between participants and lecturers.

Aalto Executive DBA Program – Reaching for the Top STARTING IN 2013 Aalto University will offer a global DBA Program tailored for executives and other top level business professionals. The degree is designed for talented individuals with considerable managerial experience. The major areas are strategy and marketing, but students are also encouraged to pursue other managerially relevant interdisciplinary topics. The Aalto Executive DBA is a structured degree program in Business Administration with real world relevance and academic rigor.

26

NEW! AALTO EE PUBLISHING AALTO UNIVERSITY EXECUTIVE EDUCATION will start publishing its own series of business books and case studies. The launch of Aalto EE Publishing will coincide with the release of our first book at the end of October 2012. More thoughtprovoking books on current business topics will follow in the coming months. Stay tuned!

ww.aaltoee.fi

HISTORY LESSON

“Feeling unique is no indication of uniqueness.”

Douglas Coupland, Canadian writer

The challenge of letting go After a long and successful career guiding your company to glittering new heights, it is time to pass the reins to your successor.

So why is it so hard to let go?

TEXT: AMANDA THURMAN

THE TOPIC OF SUCCESSION has fascinated poets and dramatists for millennia with its themes of loyalty, betrayal, power, frustrated ambition and mortality.

When it is time for a leader to pass the torch, problems arise if he or she is not ready to let go. Sometimes the incumbent tries to sabotage their successor, while some try not to leave at all. Failing to prepare for succession can lead to the failure of the company, yet it is an issue many organizations ignore.

Generational envy led to succession difficulties at Disney when Michael Eisner struggled with relinquishing power. James Stewart writes in his book Disney War (2005) how Eisner was pressured to name and train a successor after the death of his second in command. Despite reservations, Eisner named his friend Michael Ovitz, but then hesitated. “You have to understand, I do not want to feel as if I’m in competition with anybody,” he said. When Ovitz agreed to take the job Eisner told his biographer, “I think I just made the biggest mistake of my career.”

mistake the company made was not giving Frank Stanton the top job. Stanton had been in line for decades but was forced to retire when he turned 65, while the older Paley stayed. “[Stanton] did not work out,” wrote Paley. “I exercised my prerogative to continue in my own role.” Paley died at the age of 89, still chairman, and CBS came under corporate control five years later.

RETIREMENT CAN BE DIFFICULT for anyone with the loss of income, routine, aging and decline. For charismatic, driven leaders the loss of status and recognition are also emotionally difficult. It is little wonder that retirement planning is an issue many CEOs avoid. There may also be other reasons why innovative and influential leaders might need to move on.

Steve Jobs co-founded Apple in 1976 and served as chairman until 1985 when he left the company in acrimonious circumstances. After disagreements with then CEO John Sculley over how the company was being run, the board relieved Jobs of all operational responsibility.

He resigned a few months later, devastated to be leaving WHEN OVITZ MET Disney executives, the CFO and a company that meant everything to him. Jobs went the general counsel both told him they would never work on to found Pixar and NeXT Computer before returning to for him. Secretly pleased, Eisner gave Ovitz no support, Apple in 1996 when the company bought NeXT. his position was diminished, and his decisions were After a board coup, Jobs was named Apple CEO undermined. Ovitz left Disney less than a year later with and quickly turned the then failing company to profitability. a settlement that cost the company $140 million. Eisner In 2008, with his health failing, Jobs began planning for was reinstated with a new ten-year contract, confirming his succession, hoping to ensure Apple continued on his belief he was irreplaceable. the path he had set out. He established Apple University William S. Paley at CBS groomed to groom future executives, consolidated his executive team, several successors but all were and agreed with the board that Tim Cook would succeed forced out before taking the him as CEO. This was all in place before Jobs resigned post. When he turned 65 in August 2011.

Paley got the board to As these cases show, in order to safeguard the health waive CBS’s mandatory and longevity of a company, planning for succession is vital. retirement, allowing him Leaders who resist moving on should take heart though. to stay, and then insistIf a confident and successful CEO plans WWW.YOURLEADERSHIPLEGACY.COM ed the rule was compulfor his successor wisely on his own terms, sory for everybody else. he can ensure his legacy will continue for Assess Possibly the biggest many years to come. your leadership style.

27

Triple crown.

Now also in Sweden.

'

"

&

# $#%!

( #

"

"

" # "