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Secrets of the Superbosses

2016-01-11 12:51:59

Sydney Finkelstein

What do Ralph Lauren, Larry Ellison, Julian Robertson, Jay Chiat, Bill Walsh,

George Lucas, Bob Noyce, Lorne Michaels, and Mary Kay Ash have in common?

Certainly all of them are known for being talented and successful even

legendary in their respective fields. All have reputations as innovators who

pioneered new business models, products, or services that created billions of

dollars in value. But there s one thing that distinguishes these business icons

from their equally famous peers: the ability to groom talent. They didn t just

build organizations; they spotted, trained, and developed a future generation

of leaders. They belong in a category beyond superstars: superbosses.

I started researching this cohort of managers a decade ago, when I noticed a

curious pattern: If you look at the top people in a given industry, you ll

often find that as many as half of them once worked for the same well-known

leader. In professional football, 20 of the NFL s 32 head coaches trained under

Bill Walsh of the San Francisco 49ers or under someone in his coaching tree. In

hedge funds, dozens of prot g s of Julian Robertson, the founder of the

investment firm Tiger Management, have become top fund managers. And from 1994

until 2004, nine of the 11 executives who worked closely with Larry Ellison at

Oracle and left the company without retiring went on to become CEOs, chairs, or

COOs of other companies.

Eager to learn the secrets of these star makers, I reviewed thousands of

articles and books and conducted more than 200 interviews to identify 18

primary study subjects (definite superbosses) and a few dozen secondary ones

(likely superbosses). I then looked for patterns common tastes, proclivities,

behaviors anything that might help explain why these people were able to propel

not only their companies but also their prot g s to such great heights.

I found that superbosses share a number of key personality traits. They tend to

be extremely confident, competitive, and imaginative. They also act with

integrity and aren t afraid to let their authentic selves shine through.

But far more interesting (and more important for teaching purposes) were the

similarities I saw in the people strategies that superbosses employed. Their

remarkable success as talent spawners was not the result of some innate genius.

These leaders follow specific practices in hiring and honing talent practices

that the rest of us can study and incorporate into our own repertoires.

Unconventional Hiring

Superbosses begin by seeking out unusually gifted people individuals who are

capable not merely of driving a business forward but of rewriting the very

definition of success. As Lorne Michaels, the longtime producer of Saturday

Night Live, has said, If you look around the room and you think, God, these

people are amazing, then you re probably in the right room. Here s how he and

others do it.

Focus on intelligence, creativity, and flexibility.

Superbosses value these three attributes above all others. C. Ronald

Blankenship and R. Scot Sellers, both prot g s of real estate guru Bill Sanders

before they became CEOs of leading property companies themselves, remember how

Sanders would brag about bringing in so many people who were four times

smarter than he was. He would insist that if you weren t going to hire someone

great, you shouldn t hire anyone at all.

Superbosses begin by seeking out unusually gifted people.

Superbosses want people who can approach problems from new angles, handle

surprises, learn quickly, and excel in any position. Norman Brinker, the

casual-dining innovator who founded Steak and Ale, was a good example. As Rick

Berman, who worked under him before founding a successful lobbying firm,

recalls, Brinker wasn t a fan of hiring people to play first base; he just

wanted to hire a good baseball player. That emphasis on versatility helped

give rise to a generation of top leaders in the restaurant industry, including

the CEOs of Outback Steakhouse, P.F. Chang s, and Burger King.

Find unlikely winners.

Superbosses consider credentials, of course, but they re also willing to take

chances on people who lack industry experience or even college degrees.

According to Marty Staff, who worked for Ralph Lauren before becoming CEO of

Hugo Boss USA, Lauren once made a runway model the head of women s design for

no other reason than she seemed to get it she got the clothes. At health care

giant HCA, Tommy Frist sometimes set even physical therapists on a path to the

C-suite, simply because he spotted something in them.

Because they reject preconceived notions of what talent should look like,

superbosses often show greater openness toward women and minorities. Mary Kay

Ash, in fact, expressly designed her company to empower women, holding sales

conferences where the message was If she can do it, so can I. Walsh started a

fellowship program in the NFL for minority coaches, giving participants a fast

track into the league and himself a chance to tap into a vast new source of

talent.

Superbosses often dispense with the conventional interview process, too;

instead, they pose unusual or quirky questions or use observation as a tool.

When Ralph Lauren met with job candidates, for example, he would ask them to

explain what they were wearing and why. Sanders would invite prospects to hike

a 7,000-foot peak on his New Mexico ranch with him and other managers. We

learned a whole lot about these kids on the hikes, recalls Constance Moore,

who worked for Sanders at Security Capital before becoming CEO of BRE

Properties. After, we would all sit down and talk about each of them and

figure out which ones we wanted to ask to join.

Adapt the job or organization to fit the talent.

Superbosses opportunistically tailor jobs and sometimes even their

organizations to new hires. As an assistant coach for the Cincinnati Bengals,

Walsh had to invent a new offense to enable the backup quarterback to excel

after an injury brought down the team s starter. Because the second-stringer

had more accuracy than arm strength, Walsh designed an unusual strategy around

short passes which later became known as the West Coast offense (when Walsh was

with the 49ers). Lorne Michaels lets his ensemble s ideas and abilities

constantly shape and reshape their contributions to Saturday Night Live.

Writers sometimes become performers, and performers or assistant directors

sometimes become writers. At Industrial Light & Magic, George Lucas s employees

didn t even have job descriptions. They were assigned tasks on various projects

according to what was needed and who was available. All these examples run

counter to traditional HR practices, but they reflect an innovative mindset

that superbosses bring to virtually everything they do.

Accept churn.

Smart, creative, flexible people tend to have fast-paced careers. Some may soon

want to move on. That s OK with superbosses. They understand that the quality

of talent on their teams matters more than stability, and they regard turnover

as an opportunity to find fresh stars. Consider how Discovery Communications

founder John Hendricks reacted when, in 1997, his second in command, Richard

Allen, was asked to become the head of National Geographic s for-profit arm.

Hendricks would have loved to have kept Allen but never tried to hold him back,

realizing that he d rather have a friend leading his rival than anyone else.

It was a real indication of his generosity of spirit, Allen says.

The Three Types of Superbosses

R1601J_FINKELSTEIN_A GLORIOUS BASTARDS

These superbosses care about one thing: winning. They re the ultimate hard

drivers, yet they realize that to get the very best results, they need to

develop the world s best people and teams. So they do.

EXAMPLES: Larry Ellison, Michael Milken, Bonnie Fuller, Julian Robertson, Jay

Chiat

R1601J_FINKELSTEIN_B NURTURERS

These coaches and teachers resemble traditional mentors the most. They take

pride in bringing others along and care deeply about the success of their prot

g s. They help people accomplish more than they ever thought possible.

EXAMPLES: Mary Kay Ash, Bill Walsh, Michael Miles, Norman Brinker, Tommy Frist

R1601J_FINKELSTEIN_C ICONOCLASTS

These executives usually operate in creative fields, where their single-minded

passion for their work inspires their prot g s.

EXAMPLES: Ralph Lauren, Alice Waters, George Lucas, Jon Stewart, Lorne

Michaels, Robert Noyce

Amanda Edwards, Graham Bezant, Neilson Barnard/Getty Images

This kind of attitude has an added payoff: When word gets out that people who

work for you succeed not only at your organization but outside it, the world

will start beating a path to your door. Superbosses barely need to recruit,

because their reputations bring a continuous stream of talent to them.

Hands-on Leadership

Superbosses also have a distinct way of developing employees. Take Larry

Ellison. His greatest strength, according to one of his prot g s, is his

ability to make exceptional people do the impossible. I heard stories in a

similar vein about other superbosses. From them, one can distill these

principles:

Set high expectations.

Superbosses are bullish on what their teams can accomplish. They demand

extraordinarily high performance; perfect is good enough captures their

attitude. The legendary Bob Noyce, for instance, could be a very, very tough

taskmaster, remembers his fellow Intel cofounder Gordon Moore. If you were up

for the challenge, you could be very successful. But superbosses go beyond

pushing hard for results and instill a sense of confidence and exceptionalism

in their people. Michael Rubin, who was a young member of Lucasfilm s Graphics

Group in the 1980s, recalls how transformational it was to hear Lucas talk

about his vision for digital filmmaking and the role they would all play in it.

I heard him explain what the future could be like, and I was infected with

that at age 22. I believed him. And it changed my career. Tom Carroll, now

chairman of TBWA Group, sounds a similar note about former boss Chiat: Jay

left something in people that makes it hard for you to go back to being

ordinary. Once you feel it, you can t change it.

Be a master.

Superbosses are extremely effective delegators. Having chosen smart, ambitious,

adaptable people and offered them a vision, they trust the team to execute.

Norman Brinker gave us incredible autonomy, explains Richard Frank, a former

senior manager at Steak and Ale who went on to run Chuck E. Cheese. We

definitely had the ability to fail. And yet superbosses also remain intimately

involved in the details of their businesses and their employees work. HCA s

Tommy Frist, a licensed pilot, would take subordinates on his plane to company

events, using the flight time to engage in what was almost a tutorial on some

aspect of what those people were working on. I compare it to the

master-apprentice relationship you find in a traditional artisan workshop. Like

highly skilled craftsmen, superbosses give prot g s an unusual amount of

hands-on experience but also monitor their progress, offer instruction and

intense feedback, and step in to work with them side by side when necessary.

Even if people leave the organization, superbosses continue to offer them

advice.

Superbosses teachings extend to leadership and life lessons as well. Frist

would counsel managers on everything from setting daily goals to the importance

of exercising to stay sharp. Luc Vandevelde, the former chairman of Marks and

Spencer and Carrefour, was taught by former Kraft CEO Michael Miles to walk a

fine line between partnering with subordinates and micromanaging them. Miles

advised Vandevelde to work closely enough with his people to elicit skills

but not so closely that he would limit skills. I ll never forget those

words, Vandevelde explains. They profoundly changed my management approach,

creating an environment where people can be at their best.

Encourage step-change growth.

All the superbosses I studied offered advancement opportunities far beyond

those found in traditional organizations. Rather than relying solely on

competency models to guide development and promotion decisions, they

customized career paths for prot g s who had proved their worth, seeking to

dramatically compress their learning and growth. Chase Coleman, a disciple of

Julian Robertson, says that his former boss was good at providing a steep

learning curve for people who excelled at their first task. In fact, just

three years after Coleman joined Tiger Management as a technology analyst,

Robertson sent him off with $25 million to start his own fund. Larry Ellison

took a similar approach, says Gary Bloom, a former executive VP of Oracle who

later became CEO of Veritas. One thing Oracle was incredibly good at was on a

continual basis throwing new responsibility at people, Bloom notes. For

example, Safra Catz was acting as CEO in all but name for a decade before

formally being elevated to co-CEO (with Mark Hurd) in 2014.

Stay connected.

For superbosses, counseling prot g s is a long-term commitment. Even after

someone moves out of their organization, superbosses continue to offer advice,

personal introductions, and membership in their networks. Former creative

director Ken Segall says that although he served under Jay Chiat for only three

years during the mid-1990s, he made a practice of calling his former boss

whenever he changed jobs. Usually within two or three hours at the most, I

would get a call back, Segall recalls. He would consult with me and advise

me. He was that kind of guy.

Maintaining relationships with ex-employees sets superbosses up for all sorts

of follow-on opportunities, such as developing business partnerships. Frist

helped many of the managers who d worked for him at HCA start companies in the

health care space by investing or becoming a customer. Lorne Michaels excelled

at this, too, producing films and TV shows with former SNL stars Jimmy Fallon,

Seth Meyers, Fred Armisen, and Tina Fey.

Superbosses employ practices that set them head and shoulders above even the

best traditional bosses. They seek out talent differently and hire them in

unusual ways. They create high expectations and take it upon themselves to

serve as masters to up-and-coming apprentices. And they accept it when

their prot g s go on to bigger and better things, making sure to stay

connected.

You, too, can move closer to this ideal. Don t feel you need to try every move

in the playbook at once. Experiment with one or two. Consider unorthodox

applicants for open positions, looking at people who might possess unusual

abilities. Remember that people are more effective when they feel confident,

and make it your job to build them up. Get in the trenches more often with line

employees, so you can learn more about their particular talents and challenges

and impart wisdom that will help them grow. Look for opportunities to delegate

big responsibility even to younger team members.

Following the superboss playbook, we can all become better at nurturing talent,

creating higher-performing workforces and, ultimately, more dynamic and

sustainable businesses and industries.

A version of this article appeared in the January February 2016 issue (pp.104

107) of Harvard Business Review.

Sydney Finkelstein is the Steven Roth Professor of Management in Dartmouth s

Tuck School of Business and the author of Superbosses: How Exceptional Leaders

Manage the Flow of Talent (Portfolio/Penguin, February 2016) from which this

article was adapted.