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Long-term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the fainthearted, and the people that expect quick results, are doomed to disappointment. His choice to be a leader has proven to be his most important professional decision. nd it could be yours too. !ut as "eming noted it takes deliberate work and is not a quick transformation. #t is the choice to make the effort that makes a leader. The choice can be made by anyone anywhere because leadership is not a title. #t is, as he states in ground rule $, the ability to offer service and the willingness to take action%especially on those things we already know we should be doing, but aren&t. He continues with ground rules on earning respect, integrity, motivation, preventive leadership, courage, leadership pitfalls, and some good commonsense. 'round (ule )* Leaders cannot function in a vacuum+ Leadership requires willing and able followers. 'round (ule ,* Leaders don&t plan to be disrespected+ Leaders practice universal principles than earn respect. 'round (ule -* Leaders don&t play loose with the truth+ Leaders lead from a position of unquestioned honesty. 'round (ule .* Leaders don&t motivate followers+ Leaders search for the wants and needs that motivate followers. 'round (ule /* Leaders can&t predict followers& behavior+ Leaders need to know why people do what they do. 'round (ule 0* Leaders don&t overreact to problems+ Leaders prevent problems before they materiali1e. 'round (ule 2* Leaders aren&t fearless+ Leaders face their fears courageously. 'round (ule 34* Leaders& wounds shouldn&t be self-inflicted+ Leaders flourish when serious errors of 5udgment are avoided. 'round (ule 33* Leaders don&t always need to plow new ground+ Leaders can watch, listen, and learn from the success of others. 6an Hooser on keeping your distance* 7ou can be a supervisor or manager without getting close to your followers+ however, you cannot be a leader unless you get close to your followers. 6an Hooser was given this advice on parenting* 87ou may not always be able to predict what your child will do, or say, or think. !ut you&re the father+ your child must always be able to predict with certainty what you will do, or say, or think. That way, he can adapt and ad5ust his behavior to yours.8 He relates it to leadership* leader&s consistency provides a predictive foundation from which followers can begin to think, decide, and act. #f a leader does not establish that foundation, he or she%albeit unintentionally%creates confusion, uncertainty, and potentially chaos in the followers& minds. Successful Companies: 3. !etter !efore 9heaper. 9ompeting on non-price value, not price. :hen it comes to how you differentiate yourself from the competition, seek out a position based on non-price value. "o not compete on price. ;rice-based competition can work, but only rarely does it drive exceptional performance. :hen the recession hit in $440, bercrombie < =itch >one of their exceptional companies? was critici1ed for not cutting their prices as most other retailers did. nd although their profitability suffered significantly in the short-term and full recovery remains an uphill climb, they are not struggling to cure their customers of a 8discount addiction.8 8Those competitors that coped with the recession with price discounts are finding it difficult to increase their prices, having taught their customer that their T- shirts do not have to cost @)4 after all.8 Af course, no company can afford to ignore its relative price position. That&s why the rule is 8better before cheaper*8 being price competitive is far from irrelevant, but when it comes to position in a market, exceptional performance is caused more often by greater non-price value rather than by lower price. $. (evenue !efore 9ost. Autperforming through higher revenue rather than lower costs. :hen exceptional companies face a trade-off between increasing profitability by increasing revenue or by decreasing cost, they systematically choose increasing revenue even if that means incurring higher cost. "o not try to 8cut8 your way to greatness. Bust like price-based competition, cost advantages can be effective, but only infrequently. ;rofitability advantages driven by higher revenue, even when they incur higher cost, prove to be more valuable than advantages driven by lower cost. 8To beat the odds,8 say the authors, 8you want to focus on creating value using better before cheaper, and on capturing value with revenue before cost.8