Leadership in chaotic times: What corporations and nonprofits can learn from each other May 13, 2008 Ed Granger-Happ CIO, Save the Children Chairman, NetHope

What I’m Doing at Tuck

• Learning – Auditing class on Comparative Leadership Models – And one on Social Entrepreneurship • Advising – Independent study on disruptive innovation – Team project on tech collaboration for small NGOs • Writing – NTEN/J. Wiley Book – Blog: http://granger-happ.blogspot.com/ • Lecturing – Leadership – Future of Technology – Good Enough Principle

The Power of Collaboration

Some Context

World population is growing

World Population - 1990-2010 Average Grow th Rate Per Year: 1.3%

7,000,000,000 6,000,000,000 5,000,000,000 4,000,000,000 3,000,000,000 2,000,000,000 1,000,000,000 0 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 Source: U.S. Census Bureau, International Data Base

The Power of Collaboration

Poverty is growing faster

People Living on Less than $2/day (millions) Average Grow th Rate Per Three Years (Excluding China): 4.5%

3,000 2,500 2,000 1,500 1,000 500 0 1981 1984 1987 1990 1993 1996 1999 2001 Total Excluding China Linear ( Excluding China ) Source: The World Bank Group: World Development Indicators

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In Africa it’s worse

Sub-Saharan Africa-Population vs. Poverty (living on less than $2/day) (in millions) Average Population Grow th Per Three Years: 10.7% Average Grow th in Poverty Rate Per Three Years: 8.7%

800 600 400 200 0 1981 Population 1984 1987 Poverty 1990 1993 1996 Linear (Population) 1999 2001 Linear (Poverty) Source: U.S. Census Bureau and World Bank

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Donations are growing,

but it’s not enough

Total $$ Raised by the Philanthropy 400 Charities (in billions) Average Grow th Rate Per Year: 7.3%

$70.00

$60.00

$50.00

$40.00

$30.00

$20.00

$10.00

$0.00

1997 1998 1999 2000 2001 2002 2003 2004 2005 Source:

The Chronicle of Philanthropy,

Oct 26, 2006

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Corporate Social Responsibility

•

WSJ

report: survey of 1,800 13-to-25-year-olds – 79% want to work for a company that cares about how it affects or contributes to society – 64% said their employer's social and environmental activities inspire loyalty • One of top 3 questions asked by Microsoft applicants: What’s your social responsibility program?

• 50% of Tuck applicants who are accepted ask about the Allwin Initiative for Corporate Citizenship

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Corporate Philanthropy

• Good corporate citizen (Chase and IBM in 1960’s) • Employee retention (Microsoft in 1990’s) • Leadership Development (Cisco, Pfizer in 2000’s) • Winning the global competition for talent (in coming decade) • Strategic import increases in each era

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The War for Talent is Just Beginning

• 75M baby-boomers to retire (2010-2025) • 35M millennials (born 1980-2000) take over • The Math doesn’t work • Two conclusions: – Will change the nature of retirement – Job market will be skewed to the sellers: we will both write our own tickets

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So What Do We Want?

• To be proud of our organizations

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Nonprofits as a Leadership Case

Want

Don’t

Nonprofits Do Well?

• Death by consensus

– participation paralysis

• Quality over reach

– the Asia Area day-care case

• Accountability –

university model the irony and loss of the

• Metrics

– reporting on impact rather than input

The Power of Collaboration

Death by Consensus

The Power of Collaboration

What Do Nonprofits Do Well?

• Missions that matter • Engage employees hearts and minds • Collaboration rather than competition • Work-life balance –self directed rather than fewer hours • Pragmatic, “good enough” approach to services • We have engaging stories to tell on images to show

The Power of Collaboration

A story from Zaire

“The tree the tempest with a crash of wood Throws down in front of us is not to bar Our passage to our journey's end for good, But just to ask us who we think we are.” –Robert Frost

The Power of Collaboration

Building Collaboration

Shared Specialization

“Who has expertise I can trust?

Shared Assessments, Services II Joint Projects

“What can we build together?”

NRK, Phase 2 Satellites Partnering

“How can we work with corporations?”

Cisco, Microsoft, Intel Grants Basic Info Sharing

“What are my peers doing?”

Meetings, Conference Calls

The Power of Collaboration

Banda Aceh – Ground Zero

The Power of Collaboration

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What Are the Take Aways for Corp’s?

• Look for the "giving-back" factor: – Enlist employees in projects that give back to community. – Motivate staff, help corporate marketing (cause marketing), – While doing good for those in need. • Think constituents, not competition: – Focus on how constituents benefit, not on issues of competition.

– Partner and collaborate with competitors -- can create new technologies and partnerships that otherwise would not exist. • Find and communicate meaning in the work: – Motivate employees without benefits of stock options, stock savings plans, and bonuses – The work itself has meaning – Work environment counts big time, self-directed schedules matter • Prioritize projects and stakeholders: – Limited budgets and not limiting – Accomplish new initiatives by increasing primary stakeholder project lists and downsize secondary stakeholder list (often HQ)

The Power of Collaboration

What is this large object?

a very large ship 5 miles inland in the middle of the road

The Power of Collaboration

Cisco Fellowship Program Take-Aways

• Learn how to manage in chaotic times –

disaster response

• How to manage with fewer resources • Influence and relationship management –

how to be the “glue”

• Collaborate by example • Gaining a long-term rather than quarterly view • “Fellows became more holistic in their thinking” – Tae Yoo, VP

The Power of Collaboration

A Bias for Action

The Power of Collaboration

Something to Learn From GE

• Jack Welch’s 4 Es and a P – Energy (Molly Tschang) – Energizing (Randy Pond) – decision-Edge (decisive) – Execution (get it done!) – Passion (this mission matters)

The Power of Collaboration

The Power of Collaboration

Questions?

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