Posts

The Starting Gun Has Fired…

There will be CEOs who are winners and losers. What about you?

The sprint has begun. If you’re not moving, you’re already falling behind.

For CEOs, the time to act is now. Gen AI is on the brink of transforming every industry, every company, and every knowledge worker’s role – including yours, CEO.

Leaders with vision are already on their feet, ensuring their teams and themselves are versed in the essentials of Gen AI.

They recognize the seismic shifts in work, seeing Gen AI not as a threat but as an ally to boost productivity, improve decision-making and elevate the quality of work.

I’m not the only one who sees it this way. Consider these insights:

  • 99% of companies are boosting their Gen AI investments.
  • 97% anticipate Gen AI will transform their business within three to five years.
  • A 20% productivity pickup is expected by automating tasks with Gen AI, says Accenture.
  • According to McKinsey, Gen AI tops the list of CEO priorities in 2024.
  • PwC reports that 84% of leaders believe Gen AI will streamline employee efficiency in 2024.
  • Gartner predicts Gen AI will deliver a 15.7% cost savings and 24.7% boost in team productivity within 12 to 18 months.

The future will herald victors and vanquished. Neglecting Gen AI as a top priority spells defeat. Delaying, failing to properly train, allowing rivals to forge ahead. What’s the price you will pay if you sit on the sidelines?

Last week, I launched a Gen AI series for twenty-five CEOs. Executive AI Bootcamp is a hands-on dive into harnessing Gen AI for productivity, strategy formulation, team enhancement, and leading into the Gen AI era. Despite 80% starting as beginners, they’re on track to becoming Gen AI powerhouses. They recognize the necessity and the immense opportunity to lead through this transformative era.

What will your Gen AI narrative be? Victor or vanquished. Sitting out puts you in peril. What’s your next move?

GenAI and Medtech CEOs: What I’ve Learned

To Thrive in An AI-World, Leaders Must Master New Skills to Be More Productive, Creative and Strategic 

It’s been one year today since ChatGPT launched and brought generative AI into the mainstream. In just five days, over one million people tried ChatGPT – it took Twitter two years to hit that milestone. And in 2023, terms like “artificial intelligence,” “generative AI,” and “AI” are ubiquitous in business publications.

ChatGPT and other large language models (LLMs) allow us to write a prompt and see GenAI’s superpowers at work within seconds. It excels at generating and synthetizing text, video, audio, images and code. It’s also exceptional at brainstorming and generating ideas, completing tasks and interacting. However, it’s not perfect. It’s quirky and sometimes provides wrong answers.

Is this GenAI hype or the real deal? The jury is still out, but the quality of the LLMs is improving rapidly.  CEOs are jumping on board – mentions of AI on S&P 500 earnings calls have tripled compared to last year according to Bloomberg. And CEOs are putting their money where their mouths are. The investments and projections are staggering:

  • AI investments could approach $200 billion globally by 2025 (Goldman Sachs).
  • AI could contribute over $15 trillion to the global economy by 2030 (PwC).
  • AI productivity gains could reach $4.4 trillion (McKinsey).

In the medtech and healthtech sectors, moving to the “AI class” is vital.  2023 has been challenging – EY projects anemic 0.4% revenue growth versus the modest 3.5% growth last year. Slow growth and shrinking margins make productivity gains imperative. Meanwhile, AI in healthcare is projected to have an 85% CAGR through 2027 – faster than any other industry – and becoming a $22 billion market (BCG).

While medtech has been slow to adopt AI, firms that embrace it can optimize productivity, accelerate revenue and transform their businesses with new innovative AI-augmented products and services.

Productivity starts at home. An HBS/BCG study showed AI boosts knowledge worker productivity 66% on certain tasks. The productivity gains apply to executives, too. Yet, in my discussions with CEOs and senior leaders, most executives admit they don’t use AI in their daily work. They know “AI” as a term but haven’t realized its potential. That is a risky position. While AI may not take your job, someone who knows and uses AI soon will. When I ask these leaders if they would like to learn how ChatGPT, Claude and other AI-based tools can save them time, make them more creative and improve decisions, I get an overwhelming “Yes!”

Yesterday, I gave a CEO client a ninety-minute abbreviated version of the AI for Executive Productivity workshop. First, we identified the work he does that requires both brain and brawn. His list of “use cases” included:

  • Preparing the board deck and prepping for the board meeting.
  • Preparing for important meetings with key customers and investors. Gaining updated news about their companies, thinking of ideas to build rapport, questions to ask, questions to anticipate.
  • Writing the monthly letter to all employees
  • Preparing, writing and sending emails
  • Analyzing the monthly financial reports
  • Analyzing and summarizing industry financial reports such as proxy statements, annual reports, S-1s and 10Ks.
  • Reading and summarizing analyst and industry specific reports.
  • Preparing for sales calls.
  • Preparing for and rehearsing difficult conversations.
  • Writing performance reviews.

One-by-one, we took each of his use cases and he discovered first-hand how gen AI can help with a first draft or complete each of these tasks as an assistant, a strategist or a creator.  In ninety minutes, we just skimmed the surface, but he was amazed and sees the potential. Hours and hours of drudge work will be saved each month. Imagine if you and your team was AI-fluent and applied it daily. What would that be worth?

The takeaway is clear: AI is here to stay and rapidly improving. Leaders who don’t skill up on AI’s potential will struggle to remain competitive and become obsolete.  Medtech firms that fail to adopt it will be left behind. Make this your personal strategic imperative. Make AI your teammate to augment your daily work routine. The time to start is now – because an AI-powered future is closer than it appears!

Three Costly Mistakes CEOs Make with Their Top Teams

The confidence level CEOs have in their top executive teams dropped 7.1% the past eighteen months, as reported by the Leadership Confidence Index. This news is alarming, given the prediction of declining growth in 2023 by CEOs surveyed. In this challenging economic environment, CEOs, top teams and their companies must embrace a laser-like focus on creating and sustaining a competitive advantage.

One of the most important tasks for the CEO is to build a top team that can be relied on. Yet, few CEOs believe their top leadership team is performing as it must. The top team should be the CEO’s biggest lever for value creation. However, many CEOs make three costly mistakes that diminish team performance.  Remedy these three mistakes and you will be on your way to shaping and leading a top team that delivers.

Mistake #1 – Failure to Create Clarity

The old expression, “If you don’t know where you are going, any road will take you there”, holds true in business. If you aren’t crystal clear about where you are headed, and if your team isn’t aligned and focused on that destination, the execution of your goals simply won’t happen. Reaching your desired future state is impossible without clarity.

The Harvard Business Review article, No One Knows Your Strategy – Not Even Your Top Leaders, reported that in an analysis of 124 companies, only 28% of executives responsible for executing strategy could list three of their company’s key objectives. A study by Bain showed that 60% of employees don’t have any idea what the goals of their company are. They are wandering around, investing effort in ways that don’t contribute to the company’s focus.

How about your team? Have you and your top team defined your company’s place in the world and its purpose? Is everyone clear about your company’s purpose, vision, and key objectives? It’s doubtful.

A recipe for creating clarity is constructing a value creation blueprint with your top team. The value creation blueprint is a working document that identifies your vital growth initiatives and the “who, what, where, when, and how” the company will achieve full potential in a two to three-year timeframe. Grounded in the company’s purpose, mission, vision and values, the value creation blueprint becomes the living document, broadly shared and updated frequently, to create an aligned, mobilized and results-oriented mindset across your business.

Mistake #2 – Failure to Shape Positive Team Dynamics

Team dynamics is how your team works together. Many chief executives underestimate the criticality of positive team dynamics and overestimate the current state of their team’s dynamics. The Leadership Confidence Index findings reported that both top team members and their CEOs are concerned about how they work collectively, how they lead change and how they role model a positive culture.  Confidence in leadership team behavior declined 8% in one year.

Great CEOs are obsessed with the psychology and performance of their top teams. They know the dynamics of a top team can make or break a company. Investors understand this, too, as they believe the quality of the top team is the single most important non-financial factor in evaluating a new IPO. When a top team works together with a shared vision and supportive behaviors, the company is twice as likely to have above median financial performance.

How about your team? On a scale of 1 to 10, how is your team performing today and how should it be performing?

The best CEOs invest time, energy and money in building the capability and shaping the dynamics of their teams. That means getting to know one another and learning personal histories. Understanding what makes others tick. Strengthening connections. Discovering how to seek, give and receive feedback continuously, in a supportive way. Encouraging candor and rich debates of differing views before making enterprise-wide decisions. Appreciating that diversity in terms of backgrounds, ethnicity, sex, and ways of thinking leads to better solutions. Take these actions and build a top team that moves faster, innovates more readily and collaborates more effectively to get things done. You will likely need outside assistance to optimize the dynamics of your top team.

Mistake #3: Failure to Perform and Transform

It’s not good enough for the team to focus only on today’s business performance.  The team also needs to be focused on transforming the business for tomorrow. You must win today’s race while running tomorrow’s race, too.

The clear message for CEOs and their teams is they must reimagine and reinvent their businesses. To reinvent their business while navigating current operating challenges, CEOs need the help of their C-suite leaders, middle managers and other team members alike. They need to reimagine a company with a bolder value proposition that achieves a more ambitious purpose in the future.

But how can leaders transform the business, reinvent their company, when they haven’t yet reinvented how they lead?  To reinvent as a leader is to consciously transform how you operate, connect and lead, so you stay relevant, energized and create maximum value.

The CEO of Moderna, the biotech firm that pioneered the messenger RNA (mRNA) COVID-19 vaccination, Stephane Bancel, says the reinvention of Moderna must start with him. Every quarter, he takes the time to reinvent how he approaches his job – to recraft his role as CEO. What he needs to start and stop doing. The vital functions and key responsibilities that only he, as CEO, must perform.

Bancel reflects on how to bring an even greater sense of purpose to his work. On the relationships he must develop and nurture. And on what he must learn and how he must grow to stay current and thrive.

Are you, and your top team members, reinventing how you lead, like Bancel? Are you recrafting your roles to create maximum value, while you elevate the contribution of the next generation of leaders?

Forty percent of global CEOs think their company will no longer be viable in ten years’ time, if it continues on its current course, reported the PwC’s 26th Annual CEO Survey. With 75% of respondents believing growth will decline in 2023, most CEOs feel it is critically important for them to reinvent their businesses for the future.

CEOs and their top teams need to perform while simultaneously focusing on how to transform. PwC’s CEO study revealed chief executives spend 53% of their time driving current operating performance and only 47% thinking about the future today. The respondents believed 43% of their time should be focused on the current state while 57% should be invested on evolving the business and its strategy to meet future demands.

To transform, C-suite leaders must engage and empower others. They must use more of the visionary and coaching styles of leadership to lift others to execute today’s business, so they can place a greater emphasis on the transformation of the business.  They will need to continuously recraft their roles and reinvent their impact so they stay relevant and thrive.

Summary

It’s time for CEOs to double down on optimizing their top teams. Overcome these three costly mistakes and invest the energy, time and resources towards building a top team that creates a valuable enterprise. That’s a competitive advantage that can’t be duplicated. Failing to do so will put the company, and you, in a perilous position.

Creating clarity, shaping positive dynamics, and reinventing top team members’ contributions and roles, while reimagining the business for the future, are the steps towards high performance and value creation.

How Moderna’s CEO Stephane Bancel Stays Relevant and Thrives in a Hyper-Growth Environment

Can you name a company that has grown in revenue from $0 to $19 billion in one year? Here’s a hint: the biotechnology company that pioneered the messenger RNA (mRNA) COVID-19 vaccination – Moderna.

Founded in 2010, and led by CEO Stephane Bancel since 2011, Moderna is credited with one of the greatest discoveries of the past century, the Spikevax vaccine, which has found its way into the arms of hundreds of millions beginning in 2021. More than a one-product biotech firm, Bancel describes the company as having a “platform”, whose new way of making drugs can allow it to quickly pivot to deploy mRNA technology vaccinations and therapeutics to combat the most threatening viruses and diseases. Now with forty-eight different programs and with thirty-eight in active clinical trials, the company’s future is bright, with a market capitalization that surpasses many large pharmaceutical companies.

With the impact Moderna has experienced, over eight hundred million Moderna vaccine doses delivered in 2021 alone, it wouldn’t be a surprise to find the CEO enjoying the spoils of success. That’s not the case with CEO Stephane Bancel.

At the recent Wall Street Journal Health Forum in Boston, WSJ reporter and author of The Messenger: Moderna, the Vaccine, and the Business Gamble That Changed the World, Peter Loftus interviewed Bancel. My ears perked up when Bancel answered Loftus’ question about his unique challenges in the face of Moderna’s rapid transformation.

Loftus: “The company has changed so much in the last three years. It used to be a smaller biotech development stage. No products, a lot of people had never heard of Moderna. And now you’re a household name much bigger. What has it been like to go through that transformation? And what are some of the unique challenges you think that you’ve experienced there?”

Bancel: “I think it’s managing a company in a hyper-growth mode. You know, I worked at Eli Lilly, and I ran BioMerieux, two great companies, but neither was growing 50% a year. If you look at Moderna, as you say, actually, since the early years, we’ve grown 50% in headcount every year. This year, we started the year with around four thousand team members. We’re planning to hire two thousand people this year. So, it’s another 50%. Again, I know it’s not going to last forever, which is a good thing. But the thing that I have never done, and I think it’s, it’s the same for all of my colleagues, is ‘How do you keep reinventing your job all the time?’ Because as you can appreciate the job of a CEO at Moderna 12 years ago, when, you know, we literally had a couple of scientists and two million in the bank and only research is quite different than the job of CEO four years ago before COVID with 20 drugs in development and a public company, and running a manufacturing plant in Norwood to what it is today.”

“And so, I think it requires a lot of humility to, to really work with your boss, to work with your team. And to regularly kind of reinvent your job in terms of ‘What is the job of Moderna’s CEO today?’”

“What I do once a quarter is actually to kind of literally fire myself on a Sunday, where I try to think about where the company’s going. And I will literally write the job description of what I think the Moderna CEO must be today. And when I spent a couple hours comparing what the CEO must do today with what I’ve done in the last month or two. And I realized that some things I need to stop doing. Sometimes, it’s things I love to do that I just need to stop doing, because it’s not what the CEO of Moderna what needs to do. There are things I have not done yet that I need to start doing. Some things I must start, I don’t really like. It’s what the Moderna CEO needs to do. And so, it’s this constant reinvention that is really new. It took me quite some time to really get this as a muscle. Because again, I’ve never worked in a hyper-growth company before. That’s how to stay relevant.”

In my experience as a CEO coach, it isn’t uncommon to hear CEOs speak about the need for reinvention. Usually, it’s about how the company must reinvent to stay competitive. This perceived need has been highlighted with the findings of the recent PwC’s Annual Global CEO Survey where 40% of the CEO respondents think their company will no longer be economically viable a decade from now, if it continues on its current path.  Increasingly, reinventing the company is on the CEO’s agenda.

What is uncommon is to hear a CEO like Bancel acknowledge that reinvention must start with him. Reinvention is a must for all who work to stay relevant and thrive. If you are not CEO of your company, see yourself as CEO of your function, or of your role and your life. The purpose of reinventing your role is for you to not only feel more purpose and passion from your work, but to design your job in a way that creates massive value and impact for your stakeholders.

  • Given your current business state and your desired future state, what tasks must you stop and start doing as CEO?
  • How will you bring a greater sense of purpose to your work?
  • How will you make the time necessary to focus on your few vital functions that drive the greatest value?
  • Over the next twenty-four months, what relationships are most important for you to develop and nurture?
  • And what must you learn and how must you grow, so you stay relevant and thrive today and tomorrow?

These are questions every CEO – whether or not they are in a hyper-growth environment – should reflect on quarterly, as part of their on-going reinvention. How about you? If you are a CEO, are you reinventing every quarter? What are you doing to stay relevant and thrive?

“The illiterate of the 21st century will not be those who cannot read or write, but those who cannot learn, unlearn and relearn.”

Alvin Toffler

For more on reinventing your role as a leader, check out Reinvent Your Impact: Unleashing Purpose, Passion and Productivity to Thrive

Reinvent Your Impact - Bestselling Book by Executive Coach Chuck Bolton

Be the CEO Who Gives Gifts and Thanks

During the past two weeks, the business news has been dominated by tech companies that are laying off staff. Meta laid off 11,000 employees or 13% of their workforce. Twitter terminated the employment of 3,700, nearly 50% of its staff.  A long list of other companies followed. Intel, Snap, Robinhood, Stripe, Salesforce, Lyft, Microsoft, Shopify, Netflix, HP and Coinbase rounded out the list of companies laying off 10% or more of their team members.

The news of layoffs in the tech sector strikes fear in the markets and in those outside of the industry, too.  Meanwhile, unemployment remains at or near an all-time low. Most businesses are not laying people off but doing their best to meet the needs of employees and customers. Many CEOs are projecting an economic bounce back and predict 2023 will return to a more normal year. Outside of the tech sector, where most Americans work, is where the good stuff in our economy is happening, although it is rarely mentioned in the news.

One of my CEO clients in the medical device sector brought his top leadership team together last week to discuss their 2023 plans. Since he was hired just over a year ago, four of his eight direct reports are new to the company. Aware his team of leaders have been working hard learning the business, managing their responsibilities and building their credibility, he took them off-site for a few days to plan for the upcoming year and to recognize their contributions. It is a lonely journey most leaders walk, saddled with multiple demands and high expectations, yet rarely do they receive positive support and affirmation. He decided to change that.

His desire for his new team is not just to develop and execute the strategy, but to get to know one another better and build trust as they work together to create a great company.

During the last working session of the day, everyone wrote on a sheet of paper the name of each team member. Then they wrote three gifts each person brought to their work. These were not technical skills or work competencies; they were personal qualities demonstrated by the individual. At the bottom of the sheet, they wrote what they would miss if that person was no longer on the team.

Ten minutes later, each person received seven pages of their gifts as perceived by their teammates. They took a few minutes to each read their gifts silently, then they shared what they heard with the full team.

After each individual shared “What I heard”, their colleagues elaborated on the gifts and unique qualities that person brought to their work, sharing examples and a story or two.  Many smiles were shared. After everyone took their turn, to take it a step further, they reflected on what they heard, what they saw as their own special gifts and wrote and shared their unique gift statement.

Here is a sample of the gift statements shared:

  • I use my gift of enthusiasm, joy and a positive attitude, to lift people up, encourage and support others, to see the bright side and find a silver lining.
  • I use my passion and ability to connect with others, to create an environment that creates an opportunity for people to achieve excellence and enjoy the experience that leads to results.
  • My gift is passion and care for people. I use my gift to serve others, to increase confidence, so they can achieve increased fulfillment and impact in their lives.
  • I use my gift of a deep caring for people – to engage, support, serve and impact others – helping them elevate.

As they exited, the CEO thanked each team member for their willingness to lean in and work together. He said, “You’ve now landed on your unique gift statement, the uniqueness that no one else in the world brings. What makes you special. Let’s now bring our gifts to all the opportunities and situations that come our way.”

What do you think the collective mood of the team was walking out of the room that afternoon?

One team member stated, “I’ve never been through a process like this, giving and getting gifts from your colleagues and leader. I’ve worked with some companies for many years and never heard what others thought my gifts were. I feel tighter with this team already than the other teams I have been part of.”

Another said, “While it was at first a little uncomfortable to be recognized by my peers and boss in such a way, I am grateful you appreciate me for who I am. I am so happy to be part of this team and company. You make it safe and motivating. Thank you for your encouragement and letting me be me.”

As they wrapped up, high fives, smiles, thank yous and hugs were abundant. An uplifting and affirming afternoon. The team was tighter, more supportive and trusting at the close of their meeting.  Each person felt accepted, encouraged and inspired.

Is the collective emotional state of your top team, CEO, like this team’s? Do you invest in building relationships, trust and commitment?  If not, why not? What’s the price you’ll pay if you aren’t the CEO who gives your team gifts and thanks?

Intentionally building relationships, trust and commitment secures the foundation from which you build and grow your company. The bonds and tight relationships serve as the cement that holds the blocks of the foundation – the people, strategies, goals, products, execution and results – together. A small investment in time and effort can yield a tremendous return on investment.

As we celebrate Thanksgiving and the holiday season, won’t you be the CEO who is grateful for your team and gives gifts and thanks?

Every CEO Needs a Coach

As CEO, your job is to create great value. More than any other person, your impact as CEO is the single biggest predictor of your company’s success. Perform in the upper 20% of CEOs and you’ll generate a nearly 3X greater return to shareholders than the average performer.

Yet sustaining top performance and value creation is not so easy. Today’s environment is riskier and more challenging than just a decade ago. You operate in a volatile, uncertain, complex, and ambiguous world, where disruptive technology abounds, talent is scarce and shifting, new business models and competition threaten the status quo, and social unrest, a pandemic, and the climate crisis loom. You have a lot of weight on your shoulders. To help you navigate this treacherous terrain, can you benefit by having a CEO coach, whose sole goal is to help you become more successful in work and life?

Every top performer has a coach. World-class athletes, musicians, and entertainers all have coaches. Best-in-the-world performers hire coaches to help them improve their games, become better and stay on top. It’s the same for smart CEOs.  Eric Schmidt, former chairman and CEO of Google said, “The best advice I ever got was from John Doerr (chairman of venture capital firm Kleiner Perkins) who said to get a coach.” A CEO coach sees you with a different set of lenses, making suggestions and offering insights that help you create great impact.

 

Your CEO coach’s only agenda is a desire to see you operate at your best and succeed. Your coach is a confidant who plays a role no other stakeholder can play. Board members, direct reports, or well-meaning spouses aren’t coaches as they have their own agendas. Your coach sees your greatness, beliefs, and blind spots. Listening carefully, your coach learns your biggest challenges and opportunities. Your coach asks thoughtful questions, explores options, and offers perspective and wise insights.  Your coach helps you learn new skills and strengthen your relationships. Your coach shows you how to grab hearts and minds. Your coach will teach you how to connect with, persuade and inspire others to act. Your coach encourages and inspires you to become your best.

When you get better, everyone around you gets better. You serve as a role model for others to grow and lift their games, too. That’s a powerful way of building a team of high performing, value creating leaders.

What to look for in your CEO coach? Your coach must understand your context, bringing senior level executive experience in your industry sector along with a track record of success working with CEOs on the topics where you seek assistance. Your coach must clearly describe what you can expect working together and provide examples and references of client success stories that resonate. Your coach must always keep your discussions confidential. Finally, your coach must be a good personal fit with you. The chemistry has be right.

Every CEO needs a coach. When you select and engage with an outstanding CEO coach, and commit to do your work, the benefits you’ll receive can be enormous. You’ll gain a brainstorming partner, a confidant, a trainer, a sage, and a motivator, who’ll help you thrive. So, you become better – in work and life – creating great value for yourself and all your stakeholders.

What Do Exceptional CEOs Do Differently? Where Do You Fall on the Scale?

As CEO, your job is to create great value. More than any position, your impact is the single biggest predictor of your firm’s success. What you control accounts for up to 45% of company performance. In an increasingly volatile world, your impact will become even more important in the future.

Every CEO has six key responsibilities they must embrace. Exceptional CEOs think and act differently as to how they carry out their responsibilities.  Finally, we have a self-assessment tool that measures your performance on these areas.  It’s called Your CEO Check Up. It takes about 10 minutes to complete on-line, it is confidential, you get your results instantly, and best of all, it’s free.

How you perform matters – a lot.  You can be a boost for your company or can set it back.  The risks are high. With CEO turnover on the rise, fail to create the value you must and you’ll be shown the door.

 How about you? Are you winning or losing? Every CEO has blind spots. What’s the risk if you don’t perform to your full potential? What price will you pay?

With results in hand, you’ll want to know how to create the value you must. For more on the mindsets and CEO practices that drive value, you’ll need Your CEO Resource Guide.  It’s full of valuable insights and information, its downloadable and it is free, too.

When you get better, everyone gets better. Go to YourCEOCheckUp.com, take the self- assessment and get your results. Then, go to YourCEOResourceGuide.com to discover what you can do to raise your game and put yourself on the path of becoming the exceptional, value-creating CEO you are meant to be.

How Mike Sievert Fumbled T-Mobile’s Massive Security Breach Crisis: Mobile Provider CEO Fails The Three Rules of Crisis Management

A cyberattack that exposed the personal information of more than 53 million people, including names, addresses, dates of birth, social security numbers and driver’s license information of current and previous customers was reported to T-Mobile, the US’s second-largest mobile service provider, on August 13.  This is the fourth known data breach at T-Mobile since 2018.

On August 15, T-Mobile reported an investigation of a security breach was underway. On August 26, John Binns, a 21-year-old American living in Turkey, shared in an interview with the Wall Street Journal that he was the hacker behind the security breach. Binns described his entry point into the cellphone carrier’s data center and how he accessed more than 100 servers. Binns said, “… their (T-Mobile) security is awful.”

Fourteen days after becoming aware of the massive security breach, and one day after the WSJ interview, CEO Mike Sievert finally went public on August 27. Sievert stated, “We didn’t live up to the expectations we have for ourselves to protect our customers.” Sievert’s public post on the company’s website included news of T-Mobile’s plan to partner with two consulting firms to prevent future cybersecurity disasters, a two year offer of free identity protection services and instructions for resetting PINs and passwords.

Nowhere in his public statement did Sievert explain why the breached confidential personal information was not encrypted. Nowhere in his public statement did Sievert – as CEO – take personal responsibility for the security breach.  Nowhere in his public statement did he acknowledge the inconvenience and potential pain his customers and former customers might suffer as a result of their private data being breached.

With 90 million customer accounts, the damage to the T-Mobile brand with this fourth breach in three years could be massive. The damage to Mike Sievert’s personal brand may also be massive. Time will tell.

Last week, the Federal Communications Commission announced an investigation into this latest T-Mobile failure. Two years ago after their data breach failure, $3.5 billion consumer credit reporting Equifax, entered into a $700 million settlement with US officials. With over $68 billion in revenue in 2020, what will be the fine T-Mobile will pay for their lapse of security?

At some point in time, every company faces a crisis. These are the moments that can define companies, brands and CEOs.  Three steadfast rules should govern CEOs when mistakes are made and things go wrong. They are:

  1. When a crisis arises, the CEO must be front and center, seen as personally managing the crisis. While T-Mobile knew of the breach on August 13, it took two weeks, a day after the hacker went public, for Sievert to issue a public statement.
  2. When the crisis arises, the CEO has to acknowledge the issue and accept personal responsibility. When Sievert finally issued his public statement, he didn’t comment on the headaches and problems for millions who had name, address, SSN, date of birth and driver’s license numbers compromised. A statement on the company’s website two weeks after T-Mobile learned of the cyberattack, doesn’t cut it as a heartfelt personal apology to impacted customers.
  3. Most importantly, when crisis occurs, the CEO needs to overcorrect. When Johnson and Johnson experienced the Tylenol murders, the CEO pulled product and developed tamper-resistant packaging. When Wal-Mart experienced a fatal shooting in its El Paso, TX store, it stopped selling handguns and ammunition. What did T-Mobile do? They offered assistance on how to change your pin and password and a couple of years of identity protection service. Could something more financially meaningful for loyal customers be offered? A free month of service? A free phone upgrade? A generous gift card? Something meaningful to show “we care” to valuable customers.

The old adage about life, “It’s not what happens to you but how you react to it that matters,” holds true for CEOs and companies that stumble.

While Sievert whiffed on CEO rules 1 and 2 of crisis management, there’s still time to salvage rule 3 by overcorrecting. The window of opportunity is quickly closing. Will Sievert recover and handle T-Mobile’s latest crisis in a way that protects his company’s brand, restores confidence to customers and shareholders and bolsters his leadership?

Here’s an opportunity for Mike Sievert. It’s time to pivot. How about taking personal responsibility for the mess and recovery? How about providing a heartfelt, deep apology to those who have been affected? And how about overcorrecting by doing right by your customers?  Following the three rules of crisis management will help Mike Sievert and his Team Magenta shift the story, boost stakeholder confidence and ensure this latest crisis doesn’t go to waste.

 

Bringing Your Company’s Purpose To Life: 4 Steps to a Purpose-Driven Client Experience

In our recent post, you discovered that purpose is the secret ingredient of extraordinary companies. If you’ve done the work, you reflected on the questions to unlock that noble purpose statement for your company. You’ve committed to a higher purpose and you and your team members are genuinely passionate about making a difference in the marketplace. You believe in the good work your firm does. Your company’s products and services make people’s lives and the planet better.

With this noble and honorable purpose statement now in place, here’s the big question for you:

How do you bring your purpose to life?

With great care and on-going commitment, you design both a purpose-driven client experience and a purpose-driven team member (employee) experience.

Let’s focus today on the purpose-driven client experience. Why? As iconic leadership expert Peter Drucker stated, “The purpose of business is to create and keep a customer.”  When you operate with purpose when serving your clients, something remarkable can happen.

Here are the four keys for creating a purpose-driven client experience.

  1. Define your brand position

Step one is to create a concise statement that details how your firm differs from and is better in meeting your client’s needs than your competitors. The following are reflection questions to create your brand position statement:

  • What do we do better than anyone else in the world?
  • What difference has our product or service made in the lives of our clients?
  • When would and wouldn’t they use our brand vs the competition?
  • What is the emotional benefit we provide our clients?
  • How do we make them feel?
  • What would they lose if we ceased to exist?
  • As we serve our clients, what makes our hearts sing?

Example: The Bolton Group LLC is the #1 resource to guide medical technology, life sciences and healthcare CEOs in creating massive value so their stakeholders thrive.

Make sure all team members know, understand and can articulate your brand position statement with clients, so clients know your firm is unique.

  1. Create a one-liner making your client the hero

Step two is to make your client the hero of the story. Your role, and that of your brand is not to be the hero, but the guide.  Your client doesn’t want another hero. They want to be the hero of their story.

What is success to your client? How do your clients wish to feel and what do they want? Your job is to help your client solve their biggest problem and/or capitalize on their biggest opportunity. What role will you play in your client’s journey? Create a one-liner of how you and your brand will make the client a hero.

Example: I’m Chuck Bolton, the guide who helps medtech, life sciences and healthcare CEOs thrive. Making you the hero of your magnificent story.

  1. Use the clock model to strengthen client touch points

Now is the time to do a brand audit  – an assessment of the positive and negatives – of every point where your firm connects with the client. Each component influences your client’s perception of your firm and each component must be supportive of your company purpose.  This is where you adjust and clean up any problems.

A useful model to conduct this exercise is to think of a clock.  To what extent is each component reflective of your company’s purpose? Which needs to be adjusted in order to be consistent with purpose? Which component is doing well and is consistent with purpose?

Pre-purchase. A client enters your brand world at the pre-purchase stage, think 12 to 4.  Pre-purchase components include advertising, tradeshows, social media, public relations, events and sponsorships.

Purchase is 4 to 8 on the clock. The components include distribution, packaging, store design, user reviews, financing, user generated reviews.

Post-purchase is 8 to 12. The components include customer service, loyalty programs and warranty programs.

How to strengthen your client touch points?

First, put your client in the center. What is most important to them?

Secondly, look at the client experience holistically around the brand. Does your purpose get reflected like you intend?

Thirdly, look at your competitors. What can you learn from them?

Fourth, Where is your firm’s opportunity to stand out? Where is the world headed? Where’s the greatest variance? With your limited capital, where can you be world-class in your sector? Where can you gain the greatest return on investment with shifts you make to your client touch points?

When Apple launched Apple Stores in 2001, many were skeptical of these expensive and airy retail stores that just displayed a few products. Experienced consumer electronic chains like Gateway, CompUSA and others were in decline.  But the customer experience Steve Jobs and team wanted was not to have metal boxes thrust at their customers. They believed there was power in focusing on the pre-purchase touch points, allowing customers to try out and learn about the products. When customers experimented and learned, they could see the potential the products had in empowering their lives in the future. They would develop an emotional connection, and sales would follow. Apple took a decidedly different approach than their competitors. As they prepared for the launch of Apple Stores, they asked a more empowering question: How do we enrich lives?

As they visualized the experience of their clients, they developed the following statements to guide their efforts in the creation of the stores:

  • A store that enriches lives has a non-commission sales floor. Instead of clerks or sales people, it would hire geniuses and concierges.
  • A store that enriches lives hires for empathy and passion.
  • A store that enriches lives greets you as you step foot inside.
  • A store that enriches lives let you play with the products.
  • A store that enriches lives is located where people live their lives.

Better questions led to better innovations. The vision to enrich lives served as the Apple Stores’ True North. Enriching lives still remains at the heart of the company’s mission.  The more technologically advanced our society becomes, the more we need to go back to the basic fundamentals of human connection. Empathy is one of the greatest creators of positive energy.

Once you’ve completed your clock model to identify and strengthen client touch points, defining your brand identity, you can create an explicit purpose-driven client story to serve as a narrative for how you’ll treat your clients moving forward. Just like Apple did with their stores. Now it’s your turn to create that purpose-driven client story.

  1. Construct your purpose-driven client story

Create a story of how you and your brand make your client a hero.

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” Jeff Bezos, Amazon

There are eight steps to the purpose-driven client story:

  1. Who is your client and what do they want? What is their definition of success? How can you enrich their lives?
  2. What’s your client’s biggest problem? What price do they pay when they suffer from the problem? What is the benefit when that problem gets fixed? What are the stakes? How are their lives enriched?
  3. Your client meets a guide – you armed with your brand, products and/or service – who brings both empathy and the authority to fix the client’s problem.
  4. You give them a plan. As your client’s guide, you have a proven process (a product or service) that when your client implements, will fix their problem and make their life better.
  5. You call them to action. Clients are people and people are often reluctant to try new approaches. You remind them of the price they pay when the problem is prolonged. You describe the future benefit from accepting the call to action. You invite them to take action, on what will become a transformational journey for them.
  6. That ends in a success. With your client, you create a vivid picture of what success will look like when the work is completed. The desired future state.
  7. That helps them avoid failure. You remind the client they will not face the downside of their problem when they are guided by you and use your proven process.
  8. That helps them transform. When they follow you and implement their plan, change happens. They become better at their work, their company gets better, their stakeholders benefit and they transform, becoming a better person, too.

As a firm that has a noble purpose and a commitment to improving the lives of people, there is no doubt you have knowledge of compelling client stories, even if you haven’t organized it exactly in this purpose-driven client story format. As a next step, write out your “customer as hero” stories, using this eight-step framework. If you have sub-brands or different product offerings, you will want to create a hero story for each brand, division or product.

These stories should be widely shared within in your firm, so everyone understands how the company’s purpose is brought to life as you serve your clients.

As you engage your clients today and in the future, share your client stories and use the client story framework directly with them, engaging them in the questions and in creating the story of their success and transformation.  Your clients will feel your commitment to making them the hero of their stories. The effect will be a magnetic pull toward you and your company and will set you apart from your competition.  As the guide, you make the client the hero of the story – every time.

Four powerful keys for bringing your purpose to life as you serve your clients

  1. Define your brand position
  2. Create a one-liner making your client the hero
  3. Use the clock model to strengthen client touch points
  4. Construct your purpose-driven client story

Implementing these four ideas is an impactful approach in making certain your clients experience your firm’s unique, noble purpose. These ideas bring your purpose to life for your clients – the most critical external stakeholder to sustaining your company’s long-term success.