Rise of The DEO PDF
Rise of The DEO PDF
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9 8 7 6 5 4 3 2 1
NOW
Change                     11
ME
Change Agent               22
Risk Taker                 26
Systems Thinker            30
Profile: Carl Bass          35
Intuitive                  42
Socially Intelligent       46
GSD                        50
Profile: Ayah Bdeir         55
WE
Co-creation                66
Networks and Communities   70
Mentoring vs. Managing     74
Profile: Jesse Ziff Cool    79
Crafting Culture           86
Care and Feeding           90
Place Matters              94
Profile: Mark Dwight        99
6
DO
Positive Passion                                110
Expertise                                       114
Problem Solving                                 118
Profile: Steve Gundrum                           123
Permission to Fail                              130
Playful Work                                    134
Iterate and Evolve                              138
Profile: Chris Anderson                          143
BE
Integrity                                       154
Humility                                        158
Profile: Emily Pilloton                          163
Generosity                                      170
Originality                                     174
NEXT
Next                                            180
Profile: Maria Giudice and Christopher Ireland   185
Resources                                       197
Index                                           202
Acknowledgments                                 210
About the Authors                               212
                                                  7
CHANGE
Change used to be much less popular. In busi-      certainly for the 60,000 paid attendees at SXSW,
ness, it was an outcome: the result of deliber-    it’s in the bloodstream.
ate, often measured efforts to reach a new goal
or solve a significant problem. Considered          No organization is static right now. Even the
inherently risky, it was administered in small     most staid and conservative company changes
doses. We welcomed a refreshed logo or name.       simply by staying the same while everything
A minor feature could be advertised as “new        around it evolves. Traditional companies become
and improved,” but large-scale change signaled     dated companies through no effort of their own.
distress. Big change meant something was wrong.    They become the 1950s suburban ranch home
Big change meant someone had erred. Today,         surrounded on all sides by updated remodels—
while change retains its prescriptive quality in   their safe, traditional stance slowly but surely
some circumstances, for most businesses, and       lowering their value.
                                                                                                  11
NOW: CHANGE
1937 75 Yrs
Today 15 Yrs
In 1937, companies listed in the Standard & Poor’s 500 had an average
life expectancy of 75 years. Today, companies listed in Standard & Poor’s
500 have an average life expectancy of just 15 years.
Hagel, John. “Running Faster, Falling Behind: John Hagel III on How American Business Can Catch Up.” Knowledge@Wharton. 2010.
12
As attractive and permanent as that world may
sound, it simply doesn’t exist anymore and it isn’t
coming back.                                                   1               2               3              4
We live in a time where little is predictable. No
career path is predetermined. No one can play it
safe. The majority of companies, their employees,
and their leaders navigate a space where com-           Only 1 in 4 employees believe
petitors appear overnight, customers demand             their organizations have the
innovations monthly, business plans rarely last a       leaders to succeed in the future.
full year, and career ladders have been replaced by
trampolines. This environment of incessant, non-        Burke, Eugene and Glennon, Ray. 2012. The SHL Talent Report.
linear change will only accelerate in the future.
Traditional CEOs are ill-equipped to survive.
Daniel Pink takes a holistic perspective and           Another response—the one advocated in this
relabels our era the “conceptual age.” As a result,    book—is to identify the business function best
CEOs need to be storytellers, big-picture think-       suited to these tumultuous times and use it to
ers, and empathetic humorists capable of giving        guide your actions. The business world has done
meaning to our lives through their products,           this before. When companies needed to develop
services, and management styles—not to men-            procedural discipline, it turned to Operations as
tion their honest, revealing, re-tweetable posts.      a guide. When companies needed to attract and
                                                       retain customers, Marketing led the way. When
Thomas Friedman warns that we’re living in             companies needed to learn how to scale, Finance
a hot, flat world where a successful CEO must           provided the tools and perspective.
upload, outsource, and offshore. Tom Kelley and
David Kelley invite us to reclaim our creative         Now that companies need agility and imagina-
confidence, while Sheryl Sandberg instructs us          tion, in addition to analytics, we believe it’s time
to “lean in.”                                          to turn to Design as a model of leadership.
                                                                                                                       13
NOW: CHANGE
If you want to start a contentious, circular debate    Leaders who understand this transformative
among a group of sophisticated, otherwise mature       role of design and embrace its traits and tenets
adults, ask them to define “design” as a business       can command in times of change. We call these
function. Google lists over four billion entries.      leaders DEOs—Design Executive Officers—and
Wikipedia adopts a particularly lame dictionary        they are our new heroes.
definition: “Design is the creation of a plan or
convention for the construction of an object or
a system (as in architectural blueprints, engineer-
ing drawings, business processes, circuit diagrams     FROM CEO TO DEO
and sewing patterns),” then makes it worse by
adding that no real definition exists.
                                                       Ask a recruiter to describe
The International Council of Societies of
Industrial Design gives it credit for creativity,      the characteristics of a
but then complicates it with grandiosity:              traditional CEO.
“Design is a creative activity whose aim is to
establish the multi-faceted qualities of objects,
processes, services and their systems in whole         She’ll first mention the need for an MBA and
life cycles. Therefore, design is the central factor   the disciplined financial perspective that degree
of innovative humanisation of technologies             implies. Nearly 40 percent of current CEOs add
and the crucial factor of cultural and economic        “MBA” to their collection of capitalized initials.4
exchange.” Phew. Good to know.                         Next, she’ll list traits associated with military
                                                       commanders: authoritative, strategic, able to del-
A more recent definition from proponents of             egate, decisive, prepared to lead, equipped with
design thinking emphasizes design as problem           a big-picture perspective. Finally, she’ll suggest
solving that creates new, useful products, places,     that the ideal CEO has some humanistic touches
communications, or experiences. We have no             as well: personable, charismatic, perhaps a dash
argument with this description as long as prob-        of compassion.
lem solving is understood to be a process and
not the literal definition of design (surely we can     These traits have served companies well over
build on successes or enhance desires as well as       the past century. When assembly lines traversed
solve problems). We would add—with empha-              the Midwest and shift workers numbered in the
sis—to design is to encourage collective change.       tens of millions, CEOs made decisions and met
                                                       deadlines. When most employees were low skilled
When we think design, our first association is          or “cogs in a wheel,” companies needed a com-
change: change that responds to need, embodies         mander at the top. They implemented order and
desire, pursues a stated direction, and reflects a      ensured conformity.
shared vision. Those who are designers—either
through training or by nature—actively encour-
age and support collective change.                     And then the world changed.
Historically, design changed “things.” More            We leaped out of the Industrial Age and buried
recently it’s changed services and interactions.       our noses in the Information Age. By the time
Looking ahead it will change companies, indus-         we looked up from our screens, we were advanc-
tries, and countries. Perhaps it will eventually       ing on the Conceptual Age and the business lead-
change the climate and our genetic code.               ership traits we previously praised had started
14
to weaken. They’d become a little creaky. They                 This scenario is repeated all around the world
strained to be relevant.                                       where the gap between who the CEO is equipped
                                                               to manage and who actually works for him
If we could borrow Harry Potter’s invisibility                 or her grows wider by the day. Employees are
cape, we’d use it to visit an executive board meet-            increasingly higher skilled. They seek challenge
ing chaired by a traditional CEO. We’d see that                and growth over security and predictability.
he follows an agenda set months before. He                     They’re networked both inside and outside
points to data from the past quarter. He calls on              their companies. Many have direct contact with
each department to report on prescribed topics.                customers. They’ve grown up collaborating and
Cloaked in invisibility, we’d slip outside and                 iterating in school and in personal relationships.
wander down the hall. In a cubicle, we’d find a                 They expect leadership that understands and
young manager surreptitiously checking his social              embraces all this.
networks, future stock prices, competitors’ posts,
and more appealing job openings—all updated                    Putting a traditional CEO at the front of a mod-
instantly in the palm of his hand.                             ern workforce is anachronistic. He or she is the
SHARED
CEO DEO
                                                                                                               15
NOW: CHANGE
                                                    Organizational Challenges
                                                    Leadership is the biggest people-
                                                    side issue in organizations.
                                                    Freedman, Joshua. Feb 2012. 2012 Workplace Issues Report.
outdated, boxy TV in an era of flat screens, the     With these traits, DEOs attract and coalesce
heavy-hulled yacht struggling to keep up in the     stakeholders who share their vision, goals,
America’s Cup.                                      and values. They build corporate cultures that
                                                    nurture and retain talented employees. They lead
How do we fill this gap? Do we put traditional       teams who learn from one another and collabo-
CEOs on steroids or add bionic components?          rate easily and effectively. With these traits, DEOs
Do we decide that women are better suited to        create resilient organizations that value expertise
the job or minorities or recent immigrants?         but make room for failure—organizations able to
Do we declare the job irrelevant and banish it      iterate and evolve with the changes taking place
altogether?                                         all around them.
We suggest a simpler solution. Just as we took      For years, business acumen and creative ability
our cues from MBAs and the military in casting      have been siloed, united only at office parties and
the ideal CEO of the 20th century, we can look to   the occasional brainstorming session. But we live
designers—in that term’s broadest definition—        in a time that requires new leadership. We live in
to model our future leader, the DEO.                a time that requires people who look at every
                                                    business challenge as a design problem solvable
Proposing design-inspired leadership as the         with the right mix of imagination and metrics.
answer may sound delusional to some, like a
zealous art teacher attacking poverty with a new
color palette. But that’s a knee-jerk reaction,     1 Fairlie, Robert W. 2012. Kauffman Index of Entrepreneurial Activity,
based largely on associations of design with        1996–2011. http://www.kauffman.org/uploadedFiles/KIEA_2012_report.pdf
                                                    2 Bialik, Carl. “Seven Careers in a Lifetime?” Wall Street Journal, Septem-
discretion, luxury, and logos. A more realistic
                                                    ber 4, 2010. http://online.wsj.com/article/SB10001424052748704206804
assessment confirms that design leaders usually      575468162805877990.html
possess characteristics, behaviors, and mind-       3 IBM Global Business Services. 2012. Leading Through Connections:
sets that enable them to excel in unpredictable,    Insights from the IBM Global Chief Executive Officer Study. http://www.
                                                    ibm.com/ceostudy2012
fast-moving, and value-charged conditions.
                                                    4 Spencer, Stuart. 2004 CEO Study: A Statistical Snapshot of Leading CEOs.
16
Six defining characteristics of a DEO
Risk Takers
DEOs embrace risk as an inherent part of          Socially Intelligent
life and a key ingredient of creativity. Rather   DEOs have high social intelligence. They
than avoiding or mitigating it, they seek         instinctively connect with others and inte-
greater ease and command of it as one of          grate them into well-defined and heavily
the levers they can control. They recast it       accessed networks. They prefer spending
as experimentation and invite collaborators.      time with employees, customers, and
A failed risk still produces learning.            strangers rather than equipment, plants,
                                                  or spreadsheets. “Everyday people” are a
                                                  source of strength, renewal, and new ideas.
Systems Thinkers
Despite their desire to disrupt and take risks,
DEOs are systems thinkers who understand          GSD
the interconnectedness of their world. They       Finally, DEOs can be defined by a new
know that each part of their organization         set of initials: GSD—short for “gets shit
overlaps and influences another. They know         done.” They feel an urgency to get personally
unseen connections surround what’s visible.       involved, to understand details through their
This helps to give their disruptions intended,    own interaction, and to lead by example.
rather than chaotic, impact and makes their       DEOs make things happen.
risk taking more conscious.
                                                                                            17
INDEX
202
Carrot Principle, The (Gostick and Elton), 93    connectivity
casual time, 49                                     book resources on, 73
catch-up days, 53                                   intuition and, 44
cellular organizations, 24                          social intelligence and, 47
CEOs                                                systems thinking and, 32
   changes required of, 13                          workouts to increase, 73
   comparison of DEOs and, 15                       See also networking
   conventional role of, 12, 15                  continual learning, 92, 117
   traits of traditional, 14, 15                 control, giving up, 177
change                                           Cool, Jesse Ziff, 79–85, 160, 175
   contemporary view of, 11–13                   cooperation, 67
   corporate rate of, 12                         corporate culture. See company culture
   DEOs as agents of, 17, 22–25                  Creating Minds (Gardner), 177
   design related to, 14                         Creative Intelligence (Nussbaum), 137
change agents, 17, 22–25                         creativity
   book resources about, 25, 197                    recognizing, 81, 102–103, 125, 190–191
   skill set required of, 23–24                     self-assessing, 81, 101
   workouts for cultivating, 25                     sustaining, 147–148
Change by Design (Brown), 25                        teaching, 166–167
Chaos: Making a New Science (Gleick), 29            workspace and, 128
Cheskin, 191, 195                                Creativity (Csikszentmihalyi), 177
Christensen, Clayton, 26                         crediting people, 69
clarifying roles, 68                             Crowdsourcing (Howe), 69
Clinton, Bill, 22                                culture
Clinton Global Initiative, 22, 50                   artistic, 45
coaching, 75, 127                                   popular, 48
co-creation, 66–69                                  See also company culture
   book resources on, 69, 197–198                curiosity, 176
   characteristics of, 67–68                     Curious? (Kashdan), 177
   cognitive types involved in, 68               custom care, 91–92
   workouts for cultivating, 69
Cohen, June, 148
collaboration, 67, 97, 171–172                   D
Collins, Jim, 158, 161                           deadlines, 52, 116
colors, corporate, 96                            Dealing with Darwin (Moore), 141
commitments, tracking, 157                       deep connections, 44
communities, 70–73                               deep networks, 71
   See also networking                           delegation, 44, 76
company culture, 86–89                           DEO profiles
   book resources on, 89, 198                       Chris Anderson, 143–149
   DEOs on, 40–41, 60–61, 84–85, 128, 169, 195      Carl Bass, 35–41
   progression for crafting, 87–88                  Ayah Bdeir, 55–61
   workouts for building, 89                        Jesse Ziff Cool, 79–85
completion, rewarding, 52                           Mark Dwight, 99–105
Conley, Chip, 118                                   Maria Giudice, 185–195
Connected (Christakis and Fowler), 73               Steve Gundrum, 123–129
connections, sharing, 171, 173                      Christopher Ireland, 185–195
                                                    Emily Pilloton, 163–169
                                                                                             203
INDEX
DEOs                                     E
   care and feeding by, 90–93
                                         Edison, Thomas A., 52
   as change agents, 22–25
                                         Edmondson, Amy, 131, 132
   co-creation and, 66–69
                                         Einstein, Albert, 120
   comparison of CEOs and, 15
                                         Eliot, T. S., 28
   connectivity of, 70–73
                                         Emergence (Johnson), 33
   culture crafted by, 86–89
                                         empathy, 47
   defining characteristics of, 17
                                         employees
   expertise of, 114–117
                                            care and feeding of, 90–93
   generosity of, 170–173
                                            continual learning by, 92, 93
   GSD ability of, 50–53
                                            poll on passion of, 111
   humility of, 158–161
                                         engagement, 24, 140
   integrity of, 154–157
                                         environment, work. See workspace
   intuition used by, 42–45
                                         EQ measurement, 47
   iterative process for, 138–141
                                         Erez, Miriam, 68
   mentoring by, 74–77
                                         error blindness, 159
   new leaders as, 180–182
                                         Esprit textile museum, 41
   originality of, 174–177
                                         evolution
   permission to fail by, 130–133
                                            company culture, 88
   personal traits of, 15, 16
                                            iteration and, 138–141
   playful work by, 134–137
                                         experimentation, 27
   positive passion of, 110–113
                                         expertise, 114–117
   problem solving by, 118–121
                                            book resources on, 117, 198
   risk taking by, 26–29
                                            building and maintaining, 115–116
   social intelligence of, 46–49
                                            workouts to strengthen, 117
   systems thinking by, 30–33
   workspace design by, 94–97
design                                   F
   definitions of, 14
   iterative approach to, 139            Facebook, 115, 185, 191
   related to change, 14                 failure
   workspace, 95–96                          fear of, 131, 132
Design MBA (DMBA) program, 92                learning from, 131–132, 167
Design Revolution (Pilloton), 166            permitting, 130–133
Designful Company, The (Neumeier), 89    fallibility, 159
details, attending to, 44                fast thinking, 43
diagrams, use of, 33                     feedback, 132
Dilbert cartoon character, 50            fellowship, 92
disconnecting from technology, 45        Fifth Discipline, The (Senge), 33
divergent thinking, 119–120              First, Break All the Rules (Buckingham and
                                               Coffman), 93
Divergent Thinking (Runco), 121
                                         flat organizational structure, 24
diversity, seeking, 48, 68, 69
                                         flexibility, 140
drawing pictures, 113
                                         Foldit computer game, 135
dream-driven change, 23, 24
                                         Fortune 100 companies, 12
Dubner, Stephen, 30, 33
                                         framing the problem, 119
Dwight, Mark, 99–105, 176
                                         Freakonomics (Levitt and Dubner), 30, 33
Dynamics of Creation, The (Storr), 177
204
Fred Factor, The (Sanborn and Maxwell), 113         higher purpose, 160
Freedman, Joshua, 16                                Homo Ludens (Huizinga), 137
Friedman, Thomas, 13                                Honest Business (Phillips and Rasberry), 157
friends, making, 49                                 honeycomb structure, 24
Future Partners, 132                                Hot Studio, 95, 97, 172, 190, 195
                                                    Hsieh, Tony, 76
                                                    Humilitas (Dickson), 161
G                                                   humility, 158–161
Game Plan for Life, A (Wooden and Yaeger), 77          arrogance vs., 158–159, 160
games, playing, 29, 135, 137                           book resources on, 161, 199
generosity, 170–173                                    characteristics of, 159–160
  book resources on, 173, 199                          workouts to improve, 161
  infinite scale of, 171                             hypergrowth model, 104
  reciprocity and, 171–172
  workouts to improve, 173
Generosity Factor, The (Blanchard and Cathy), 173   I
Gerstner, Louis V., Jr., 88                         I Wish I Worked There! (Groves and Knight), 97
Getting Things Done (Allen), 53                     IBM Global CEO Study, 13
Giudice, Maria, 185–195                             IDEO design firm, 171–172
Give and Take (Grant), 173                          immersion, 44
Gladwell, Malcolm, 45, 116                          improvisation, 53
Goleman, Daniel, 47, 49                             infinite scale, 171
Good to Great (Collins), 158, 161                   information sharing, 171
Google, 14, 136                                     innovation
Graham, Paul, 71                                       iterative approach to, 138–139
Grant, Adam, 172, 173                                  people vs. process in, 39, 60, 127, 169
Group Genius (Sawyer), 69                              spurring in companies, 191
Grow (Stengel), 89                                  integrity, 154–157
GSD ability, 17, 50–53                                 authenticity and, 155
  books related to, 53, 197                            book resources on, 157, 199
  methods for exercising, 51–52                        systemizing and maintaining, 156
  workouts to improve, 53                              workouts to improve, 157
guidance                                            Integrity (Cloud), 157
  providing higher-level, 24                        Integrity Dividend, The (Simons), 157
  value of seeking, 160                             intelligence, social, 17, 46–49
Gundrum, Steve, 123–129, 175                        International Council of Societies of Industrial
gut feelings. See intuition                              Design, 14
                                                    interpersonal connections, 46–47
                                                    interviewing skills, 47–48
H                                                   intuition, 17, 42–45
Hackathons, 53                                         analysis compared to, 44
Hagel, John, 12                                        book resources on, 45, 197
hanging out, 49                                        methods for strengthening, 44
happy accidents, 72                                    workouts for cultivating, 45
happy employees, 90                                 Intuition: Its Powers and Perils (Myers), 45
Hastings, Reed, 131                                 Ireland, Christopher, 185–195
                                                                                                       205
INDEX
206
More or Less (Shinabarger), 173                       paying it forward, 172
MVPs (minimum viable products), 51, 139               people-centered practices, 88
                                                      PeopleSmart (Silberman), 49
                                                      perceived authenticity, 155
N                                                     perceptiveness, 47
Naveh, Eltan, 68                                      perks/benefits, 93
Negroponte, Nicholas, 59                              permission to fail, 130–133
Nelson, Ben, 181                                         book resources on, 133, 199
Netflix, 131                                              ways of cultivating, 131–132
networking, 48, 70–73                                    workouts to increase, 133
   book resources on, 73, 198                         personal space, 97
   deep vs. wide, 71–72                               perspective changes, 25, 33
   ways to engage in, 72                              Pilloton, Emily, 163–169, 176
   workouts to increase, 73                           Pink, Daniel, 13
   See also connectivity                              Pinterest, 177
Nin, Anaïs, 96                                        planning meetings, 52
novices, 116                                          Play (Brown), 137
                                                      playacting, 135
                                                      playful work, 134–137
O                                                        book resources on, 137, 199
office environment. See workspace                         integrating into companies, 135–136
One-Minute Manager, The (Blanchard and Johnson), 53      workouts for improving, 137
online games, 135, 137                                Poincaré, Henri, 43
open source concept, 171                              popular culture, 48
openness, 111–112                                     positive passion, 110–113
optimism, 112                                            book resources on, 113, 198
organizations                                            employee poll about, 111
   contemporary change in, 11                            ways of working with, 111–112
   corporate culture in, 40–41                           workouts to increase, 113
   leadership challenge in, 16                        Posner, Barry Z., 23
   modular or cellular, 24                            Power of the Herd, The (Kohanov), 49
Organizations Evolving (Aldrich and Ruef), 141        Power of Thinking Differently, The (Galindo), 121
originality, 174–177                                  Power of Vulnerability, The (Brown), 133
   book resources on, 177, 199                        Practice Perfect (Lemov et al.), 117
   characteristics of, 176                            problem solving, 14, 118–121
   workouts to improve, 177                              book resources on, 121, 198
Out of Control (Kelly), 33                               process involved in, 119–120
Outliers (Gladwell), 116, 117                            workouts to improve, 121
outsiders/troublemakers, 121                          Problem Solving 101 (Watanabe), 121
                                                      profitability vs. integrity, 155
                                                      Project H Design, 165–166, 176
P                                                     public failure, 132
pace of development, 87                               purpose, company, 87, 159
paper prototypes, 51
Parnassus Workplace Fund, 91, 92
                                                      Q
passion. See positive passion
Pathfinders (Fernández-Armesto), 177                   Quantified Impressions, 181
                                                                                                          207
INDEX
208
T                                             W
Talent Code, The (Coyle), 117                 Washington Post, 115
teamwork, 67, 127                             weak links, 71
technology                                    wealth, sharing, 173
   disconnecting from, 45                     Wealth of Networks, The (Benkler), 69
   online learning and, 181                   Who Moved My Cheese (Johnson), 25
TED conferences, 72, 104, 115, 144, 148–149   wide networks, 71–72
Thinker’s Toolkit, The (Jones), 121           Wikinomics (Tapscott and Williams), 69
thinking                                      Wikipedia, 14, 148
   divergent, 119–120                         Winfrey, Oprah, 115, 156
   fast, 43                                   Wisdom of Crowds, The (Surowiecki), 29
   systems, 17, 30–33                         Wisdom of Failure, The (Weinzimmer and
Thinking, Fast and Slow (Kahneman), 45            McConoughey), 133
Thinking in Systems (Meadows), 33             women leaders, 194
time                                          work in progress, 159–160
   buffer, 32                                 Work with Passion (Anderson), 113
   casual, 49                                 working vacations, 113
to-do lists, 52, 53                           Workplace by Design (Becker and Steele), 97
Toffler, Alvin, 23                             workspace, 94–97
toys, 135–136, 137                              book resources on, 97, 198
transparency, 132, 156                          company culture and, 88
trends, cultural, 32                            creativity and, 128
troublemakers/outsiders, 121                    example of choosing, 61
True North (George and Sims), 157               ideas for redesigning, 95–96
                                                playful environments in, 135–136
                                                workouts for improving, 97
U
Uzzi, Brian, 67
                                              Y
                                              Yousafzai, Malala, 181
V
values
                                              Z
   sharing, 72
   vision and, 155, 156                       Zandan, Noah, 180–181
virality, respecting, 72                      Zuckerberg, Mark, 115
vision                                        Zullinger, Chip, 167
   change driven by, 23, 24
   values related to, 155, 156
voice, finding your own, 173
vulnerability, 133
                                                                                            209
Christopher Ireland
213