Norelco Consumer Products, Philips Domestic Appliances North America
Strategic probing.
“Much is taught and written about what we need to do as leaders. The what is energizing, whether it is changing culture, hiring and grooming talent, redefining the mission, or creating a new business model. But successful leadership is more about how we do what needs to be done,” says Robert Baird, Jr., of Norelco Consumer Products.
“The technique I most frequently employ to get the results I want, regardless of the specific challenges I am confronting, is the practice of strategic probing.
“Strong executives are quick to formulate hypotheses, whether it is about strategy, executional recommendations, culture, or people. We get to where we are because we are smart and opinionated. Whether armed with concrete data or gut instincts—preferably both, most of us quickly figure out what we need to do and act quickly.
“What is often more difficult, however, is to identify the right team for the time and circumstances we face. Whether it is a strategic business or key people issue, strategic probing enables me to adjust or confirm my initial hypotheses. So I can better ensure that the right decisions are made, and that those decisions are energetically and skillfully executed and owned by the right people.
“Strategic probing of individuals can be uncomfortable, which is why it takes practice and great finesse. It is important to create an environment that respects the integrity of the person and is therefore conducive to dialogue—the free exchange of ideas and alternatives. The goal is to get to the best, not the good enough.
“When the technique worked most effectively, I did my homework, kept digging until I was satisfied we were at the level we needed to be, and ensured that the interaction ended on a positive note. While there is nothing sexy about this process, it is the critically important spadework that produces the best outcome.
“The steps in the strategic probing process include:
- Preparation. Formulating hypotheses and communicating expectations
- Creating a conducive climate for interaction. Warm, friendly, humor and a little flattery helps relax people, so use it. Read your audience; respond to their body language
- Posing the leading, open-ended questions. Start easy, with positives. Later, begin heavier probing and challenging assumptions
- Deepening the dialogue
- Peeling the onion. Asking “why” (and “why not”)
Bringing the meeting to positive closure.
“The result should be a deeper understanding of the persons rather than the personas; a revealing X ray of the problems, challenges, and opportunities; a robust set of alternative solutions, if appropriate; and a clear course of action that energizes the team. The process not only produces the best outcome for the organization, but also brings out the innate problem-solving creativity within people and raises their performance to a new level.
“I consciously practice strategic probing in interviews. Following this practice, I have been well able to separate the wheat from the chafe and those who claim versus those who excel at a competency. Also, this technique can be used to identify values, ethics, cultural fit, and the high-maintenance versus low-maintenance executives.
“During one interview with an ex-CEO, I kept probing to differentiate accomplishments from reality. Through this process it became evident that this person was unethical. He and his management team had essentially been cooking the books.”
By way of further example, Robert says, “I joined Philips as the CEO of their Domestic Appliance Group for North America, in May of 2002. This division had been incredibly successful, delivering nearly a decade of runaway success, surpassing every operation plan objective.
“Yet, for the prior eighteen months, the core shaving business (Norelco) had been under siege. The organization was facing tough competition and did not have some of the critical competencies that would be needed to regain and sustain market leadership.
“Also, the organization had grown very comfortable, given that winning had been so easy, and had lost its competitive instincts. People throughout the organization had extensive years of service (average of twenty years), and had succumbed to the inevitable complacency that accompanies such long-term success. For those who have read Good to Great, by Jim Collins, you can really identify with this syndrome.
“My challenge was to magnify awareness of the new reality confronting us, while maintaining an environment that would be as conducive as possible to objective, nonthreatening interactions. I needed to be able to make the assessments necessary to put together the team that could turn things around and take us where we needed to go.
“My hypotheses included the likelihood that some of the team had so much invested in the past that they would be unable to make the paradigm shift to the new direction. Others in the organization were clearly able to adapt and blossom under the new direction.
“Through relentless strategic probing over the initial 90-day period in town meetings, team meetings, and one-on-ones, the critical business and people solutions became readily apparent. One member of the team was not up to the challenges we faced, another was reassigned to a position that was more compatible with his talents, and one individual was very underutilized and could be a catalyst for change.
“As a result of that process it also became evident that several required competencies were missing, and that a deeper cultural transformation was needed. The team was transformed over the year into a much more energized, hungry, and effective management team.
“Strategic probing also works very well during strategy sessions. An example arises at Philips during marketing plan meetings. Despite given clear direction that I wanted a focused discussion of key strategic choices we would be making, the team came forward with a ten-inch binder of data.
“After politely listening to PowerPoint presentations of data, I stopped the meeting to get up and lead a discussion on using strategic probing. During this dialog, we were able to peel back the onion and gain much greater insight into the key drivers (or lack thereof) of the business.
“The marketing team had been formulating pedestrian marketing plans, including TV commercials and displays to drive share. During the probing it became clear that we were targeting virtually all audiences with the same old marketing techniques.
“Also, our household penetration was eroding and our franchise was aging. Our core users, who are incredibly loyal, were not being creatively persuaded to trade up to our new products.
“Despite the dramatic evolution of electric shaving technology during-the last decade, we were not breaking through to blade users. As a result of this ‘velvet hammer’ session with the team, we redefined our entire marketing plan to focus on increasing household penetration, accelerating our repurchase cycle among core users, and beginning youth recruitment initiatives.
“This was a fundamental shift that resulted in some amazingly innovative new approaches for achieving our strategies. To date, the business has responded and our share has rebounded. Importantly, the team has also learned a new technique to challenge themselves.
“Another subset was a product line for teens that the marketing group had developed. It was a good idea and the team was rushing against time to get it launched. When we met, we discussed all the good aspects of the proposal.
“But in their haste, they had not sufficiently thought about how this could potentially cannibalize the base business. The packaging was far too similar to our core line, did not have a unified look, and was lacking an intrusive subbrand. My strategic probing determined that several critical strategic issues had not been addressed.
“In spite of the deadline and their zeal to launch, I posed the key questions and engaged them in active dialogue. The team showed their disappointment, but as we engaged the issues more deeply, it became clear that what we had was only good enough, not the best.
“The team regrouped and brought forward a much better recommendation. In the end, the product line had a very successful launch and enabled us to more deeply penetrate this important target group with less threat of cannibalizing the base business. Everyone felt good about the end result.
“It is exceptionally helpful to have great leadership mentors. I adopt the best leadership techniques from them, and eliminate those that don’t square with my personal values or preferred style. I also learn from the industry’s thought leaders—people like Bennis, Covey, Bossidy, and Welch. Attending seminars, like the Center for Creative Leadership, also has good value.
“But the most critical leadership qualities require strong emotional intelligence, and the foundation of emotional intelligence is self-awareness. It is ironic that the closer we get to the top of the mountain, the less we get what we most need: feedback!
“I not only want to know how the company and the management team are doing, but how I’m doing, and what I need to be doing better. I measure that two ways: Am I creating the kind of culture that will optimize individual and group performance, and am I personally modeling the values and demonstrating the leadership that is needed.
“Because few people are skillful or courageous enough to give candid-feedback to the boss, I ask for it anonymously. I then set improvement goals and hold myself accountable for achieving them. When necessary, I won’t hesitate to use a professional coach.
“If I am not accountable for improving my leadership effectiveness, I can’t expect it from others. Ultimately, I am trying to enable an environment where anonymity is no longer necessary—where multidirectional feedback is seen simply as a way of doing business.”