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Smart Organizations Perform Better.

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Senge, P. New York: Doubleday. Skyrme, D. Knowledge Networking: Creating the CollaborativeEnterprise. Oxford, UK: Butterworth-Heinemann. Underwood, J.

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What's Your Corporate IQ? Chicago, Illinois: Dearborn Trade Publishing. Unneland, T. Weijermars, R. Intelligent decision-making in the petroleum valuecycle. Petroleum Africa October : Amsterdam: Alboran Science Publishing. First Break 27 6 : Applied Energy 86 10 : Tracking the impact of recession on oil industrysupermajors and timing of sustained recovery.

Cultural challengesin oil and gas industry management. Wolf, C. Does ownership matter?

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The performance and efficiency ofstate oil vs. Energy Policy 37 7 Produktbeskrivelse Drawing on the innovative concept of Organizational IQ and a study of companies in seventeen countries, Survival of the Smartest charts a course for managers to follow into the twenty first century. At the heart of the book is the authors' assessment tool of an organization's future health, which they call Organizational IQ. It measures a company's ability to quickly process information and make effective decisions.

As industry clockspeeds accelerate everywhere, a high IQ has become a prerequisite for survival. Low IQ companies that the authors studied, on the other hand, have already vanished. How did Hewlett-Packard become the dominant player in printing? How did British Petroleum transform itself from a stodgy behemoth into the most agile and competitive player in the oil industry?

How did Chrysler rise from the brink of bankruptcy to become the auto industry's prized asset? This is a critical distinction. Is the industry growing explosively or is it mature? How many competitors exist and how strong are they? Does technology matter and, if so, where is it going? What constitutes sustainable competitive advantage, and how close is the organization to achieving it?

The answers to questions such as these determine which of the following five leadership approaches an effective CEO will adopt. We hear this question frequently during discussions about our research and the five leadership approaches. In fact, we found that personality is just one element of effective leadership and often not the decisive one.

In the most successful companies, the CEO has scrutinized the business situation, determined what the organization requires from its leader, and chosen the leadership approach that best meets those requirements. Consider Richard Rosenberg of BankAmerica. He employs, by his own admission and our observation, the box approach to leadership. He says that he must: BankAmerica operates in a highly regulated industry.

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A small error or, worse, a case of graft can have grave consequences. BankAmerica thus owes it to its customers to have a strict set of controls, and the CEO must make them his chief responsibility. But is Richard Rosenberg the kind of person you would expect to be using the box approach? He is relaxed, affable, gregarious. But our situation demanded a box. So here I am. Instead, he quickly discovered that Tenneco was entirely off course. The company had some attractive businesses, but many of its practices prevented those businesses from thriving. There was a highly politicized capital-allocation system, a compensation program that measured and rewarded meaningless goals, and no strategy formulation process.

Without a complete overhaul, Mead determined, the company would not survive into the next century. The battle plan: change.

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Accordingly, Mead adopted practically every technique of the change approach to leadership. He launched new policies and procedures, established a new culture, divested operations, fired employees unwilling or unable to embrace new ways of doing business, and went on the road to preach the gospel of change to Tenneco employees all over the world.

Again, not at all. He is soft-spoken, even a bit subdued. Indeed, in his previous position as CEO of International Paper, he was a human-assets leader—a role that may have come more naturally to him. But at Tenneco, the business situation demanded a different approach, and Mead rose to the challenge. That, we argue, is the essence of effective leadership. Not surprisingly, we also encountered CEOs whose personalities seemed to be a natural fit with their leadership approaches.

Assertive and demanding, Stephen Friedman, former managing partner of Goldman Sachs, would likely champion change at any organization.

How to explain this confluence of personality and leadership approach? We see two possible scenarios. The first is fortunate coincidence: A CEO assesses the business situation, determines which leadership approach is required, and finds that it just happens to reflect his or her personal style.

A second and more likely scenario: The CEO is appointed by a person or group of people who make the right match. For instance, a board of directors decides that their organization needs strong strategic direction. What sort of CEO will they look for? Not someone who wants to spend a lot of time guiding and empowering individual employees, but someone who loves to get inside the data, someone with a proven talent for analyzing current market conditions, forecasting future ones, and mapping the route between them.

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The board will select a candidate who already acts like a chief strategist. Until scientists discover a gene for leadership—and think of the repercussions of that in business, not to mention politics—the debate about personality will persist. Even if scientists find that leadership is more a case of nurture than of nature, there will still be those who think that only classic General Patton types can lead an organization to success.

Our research indicates that leadership is more complicated than that, driven not so much by what someone is like inside but by what the outside demands. CEOs who use this approach believe that their most important job is to create, test, and design the implementation of long-term strategy, extending in some cases into the distant future. It follows, then, that they tend to value employees to whom they can delegate the day-to-day operation of their organizations as well as those who possess finely tuned analytical and planning skills.

In marked contrast to CEOs in the above group, human-assets CEOs strongly believe that strategy formulation belongs close to the markets, in the business units. According to these CEOs, their primary job is to impart to their organizations certain values, behaviors, and attitudes by closely managing the growth and development of individuals.


These executives travel constantly, spending the majority of their time in personnel-related activities such as recruiting, performance reviews, and career mapping. Their goal is to create a universe of satellite CEOs: people at every level of the organization who act and make decisions as the CEO would. They often focus on designing programs, systems, and procedures, such as promotion policies and training plans, that reward people who acquire the expertise and share it across the borders of business units and functions.

These CEOs tend to hire people who are trained in the expertise, but they also seek candidates who possess flexible minds, lack biases, and demonstrate a willingness to be immersed— indoctrinated is not too strong a word—in the expertise. CEOs in this category believe that they can add the most value in their organizations by creating, communicating, and monitoring an explicit set of controls—financial, cultural, or both—that ensure uniform, predictable behaviors and experiences for customers and employees.

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In addition, they devote more time than the other types of CEOs to developing detailed, prescriptive policies, procedures, and rewards to reinforce desired behaviors. Finally, these executives tend to value seniority within the organization, often promoting people with many years of service to the corporate team and rarely hiring top-level executives from outside the company.

In contrast to CEOs who employ the strategy approach, these CEOs focus not on a specific point of arrival for their organizations but on the process of getting there.