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September 21, 2010

Common Purpose
How Great Leaders Get Organizations to
Achieve the Extraordinary
Joel Kurtzman

©2010 by Joel Kurtzman


Adapted by permission of Jossey-Bass
ISBN: 978-0-470-49009-9

Introduction
In Common Purpose, Joel Kurtzman utilizes his 30 leader’s success. Not only must the leader be willing
years of experience to explore the central question of and able to make this connection, they mush also be
leadership: what is common purpose, and how can able to sense the emotional tone of the group. Great
it be achieved? When a leader coalesces a group in leaders create a sense of inclusiveness by utilizing
an organization to achieve a central goal, this is what tools such as their own emotions, arguments, ideas,
Kurtzman defines as common purpose. When the and numbers, but in disciplined ways.
organization’s tools, values, and objectives are inter- Those organizations that rely on the “us versus them”
nalized by each individual, common purpose can be frame of mind are bound for some degree of failure.
achieved. Leaders are expected to solve problems with minimal
Common Purpose and the Leadership response time, but thinking in traditional hierarchal
Disconnect terms can hinder overall purpose. A traditional hierar-
chy means a division of leaders and followers, where
Common purpose is when a leader transforms a group
those at the senior level tend to look at any informa-
and makes it reach towards a goal. The leader reiter-
tion provided by their subordinates with insolence.
ates the goal, holds the group together, and directs the
Kurtzman cites the FBI’s response to 9/11 and the
action. Leaders should not stand on the outside of the
Enron scandal as examples. In both cases, information
group but should be very much a part of the group.
presented by a subordinate was practically ignored,
Bonding with the group as a whole is critical for a
and this led to disastrous results. Organizations with
Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved
Common Purpose Joel Kurtzman

traditional hierarchal structures not only crumble due


to inaction upon presented information, they can also
slow because of missed opportunities. Key Concepts
Avoiding the Toxic Work Environment In Common Purpose, Joel Kurtzman explores
and Retaining Talent the power of setting and achieving common
Retaining talent is also vital to an organization’s suc- goals within organizations. He defines common
cess. Toxic work environments can impact employees purpose as when a leader encourages everyone
on a large scale; a negative work environment can in the organization to reach towards a goal and
affect health, creativity, mood, and productivity. then keeps the group together and directs the
actions to achieve that goal. Kurtzman brings
Kurtzman mentions that people generally want to be
up the following points:
part of a winning team. People often yearn for rec-
ognition when they do a good job. In his experience, • Many people are more eager to work with
leaders hold people back when they crave power and an organization with a clearly defined
do not delegate responsibilities. Hoarding power common purpose and a positive work envi-
leads to less assistance overall, since people will not ronment as opposed to taking a position
feel at liberty to help. It also creates second-guess- merely for higher pay.
ing and mistrust. During his research for an annual
• Overly competitive organizations, micro-
survey of CEOs around the world, Kurtzman found
managing, and not being receptive to ideas
a general, growing mistrust of leaders. CEOs were
can result in a toxic work environment.
skeptical of employees’ advice, how well they man-
aged risks, and were worried whether the financial • Successful leaders utilize a blend of empa-
figures they reported were reliable. thy, positivity, listening skills, and the
transfer of knowledge to incite the organi-
According to Kurtzman, now is a good time to recre-
zation to achieve a common purpose.
ate and address corporate hierarchies as well as the
mistrust and confusion they create. Kurtzman notes • An amalgamation of senior level and
the reason many strong organizations have failed is younger employees helps companies create
due to leadership issues. Negative leadership tends to and take advantage of new ideas.
perpetuate itself and can carry on for years. Kutzman g g g g
notes GM as an example. Peter Drucker’s 1943 study
on GM was compiled into his book, The Concept of Information about the author and subject:
Corporation. Drucker pointed out that GM’s impend- www.kurtzmangroup.com
ing leadership troubles could be turned over by being Information about this book and other business titles:
open to criticism and complaints from both their cus- www.josseybass.com
tomers and their dealers. However, Alfred P. Sloan,
Related summaries in the BBR Library:
GM’S CEO and chairman at the time of the study,
How the Best Leaders Lead
ignored the advice. By being responsive to outside
Proven Secrets to Getting the Most Out of
criticism and moving towards a common purpose,
Yourself and Others
GM could have avoided problems. Kurtzman com-
By Brian Tracy
pares GM to Toyota, a company he considers to be
moving towards a common purpose. Purpose
The Starting Point of Great Companies
During the environmental movement of the 1970’s,
By Nikos Mourkogiannis
GM tried to work with the government to restrict
fuel-efficient Japanese imports. They opposed fuel
economy standards and ignored environmental con-
cerns. This, Kurtzman says, was the beginning of

Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 2
Common Purpose Joel Kurtzman

GM’s downfall. His view is that if leadership issues Organizations that value talent stand the test of time.
would have been handled early on, they may have People who work in these kind of successful firms feel
avoided bankruptcy and the ridicule associated with as though they are expanding and feel as though the
Rick Wagner’s (GM’s former CEO) private jet plane firm has a common purpose.
trip to Washington to ask for tax-
payer bailout money. Organizations are simply ways people have developed for
Why is this happening to corpo- achieving goals that are beyond the capability of an individual
rate giants? Kurtzman says their to accomplish alone.
decline is due to poor selection of
leaders or failure to provide leaders with the means Good leaders provide space, responsibility, and
to prevent disasters. Also, talented people tend not provide resources, yet hold people accountable.
to stay with poorly led organizations; therefore, high Kurtzman mentions Jean-René Fourtou, former
turnover rates are prevalent. It is also important to CEO of Rhône-Poulene and Vivendi Universal, who
note the factors that can destroy organizations: believes everyone in the organization is an individual.
Fourtou also says that negative people who cannot
• not adapting to change
change must be let go; they hinder the progress of
• being too rigid achieving goals.
• insularity Ramit Varma and Jake Neuberg of Revolution Prep,
These factors can all play a role, but a good leader a college and graduate student preparation program,
should know if their organization is inhibiting or pro- agree. Leaders, they say, should be open to criticism
moting progress. and challenges, but those who do not share the orga-
nization’s purpose or who are perpetually negative
People want to have a shared interest that aligns with must be dismissed.
the organization. People want to grow and be chal-
lenged, and they need the tools and capabilities to do Replacing Traditional Hierarchy
so. The organization should keep these goals alive, Structures
as well as ensure that interests are well balanced. Simon Cooper, CEO of Ritz-Carlton, uses a method of
leadership he dubbed “scriptless service.” Since hotels
cater to a wide variety of clients, problem-solving

About the Author scripts are not effective or practical. Scriptless service
means staff must think on their feet. This means more
Joel Kurtzman has more than 30 years of experi- diversity because employees must be able to think
ence working with, interviewing, and consulting for themselves while keeping the company’s mission,
CEOs of some of the world’s largest compa- brand, and common purpose in mind. Everyone at
nies. He is chairman of the Kurtzman Group, a Ritz-Carton is considered a leader and is responsible
research and consulting firm. He is also a senior for creating the best possible experience for guests.
fellow at the Milken Institute and Wharton’s SEI This type of leadership, says Kurtzman, is about
Center for Advanced Studies in Management. making decisions on behalf of the organization and
He is an advisor to the World Economic Forum taking risks to please the customer. Navy Vice Admi-
and to the United States Council on Competi- ral Arthur Cebrowski, who argued that the field
tiveness. Kurtzman has past experience as the dynamic of U.S. combat troops changed due to tech-
editor of the Harvard Business Review, editor and nology, used a similar approach. Small groups of
columnist at The New York Times, founder and soldiers no longer employed the “seek and destroy”
editor of strategy + business, and a columnist at method. Instead, they sought out the enemy and were
Fortune. presented with quite a few options to move forward.
Employees today are now presented with more diver-
Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 3
Common Purpose Joel Kurtzman

sity, which forces them not only to think on their feet, individual stores.
but also to do so while keeping their organization’s
People in organizations tend to emulate their leaders.
value and purpose in mind. People should make
Kurtzman says people watch their leaders carefully
decisions based on their understanding of the organi-
and often copy their worst characteristics along with
zation, along with the experience associated with its
the best ones. This concept is backed up by V.S. Ram-
identity or brand.
achandran of the University of California, San Diego,
Internalizing the Common Purpose who says humans have mirror neurons. These neu-
Message rons are in place so we can observe and copy the
How does a leader convey a company’s common pur- behavior of others. As a result, it is suggested that
pose? It starts at the top; if a great leader sets a great leaders must only exhibit behavior they wish to see
example, it will be replicated throughout the whole emulated.
organization. Feedback is also important; it lets people
Kurtzman makes an example out of Shivan Subrama-
know how close they come to the standard. Common
niam, the current chairman and CEO of FM Global.
purpose requires a common goal from every worker,
Subramaniam treats everyone with respect, is serious
as well as communication of what is expected and
about his commitments, and does not treat himself
feedback when goals are carried out accordingly.
differently compared to the rest of the firm. He is
also willing to work outside of his
Common purpose organizations hold to the view that knowl- comfort zone and is more inter-
edge is developed and embedded throughout the organization, ested in helping employees make
their own decisions. Subramaniam
not just at the top. believes in mixing with everyone
Kurtzman analyzes one company in particular in the company to avoid barriers.
because of its success in customer service, underwrit- Keeping and Appreciating Leaders
ing, positive working relationships, responsiveness
Retaining leaders is not always easy. New talent will
of claims processing, and willingness to pay claims.
bring new ideas, which can be beneficial to an organi-
FM Global has a high retention rate (95 percent in
zation, but each time an experienced executive leaves,
2008) and is at the top of the list in its field of property
it can lead to loss of knowledge. Leaders must feel
insurers. Kurtzman speculates the reason behind FM
as though they are challenged, wanted, and needed.
Global’s success is due to its founder, Zacharia Allen,
Kurtzman has a few suggestions on how to retain
who coined the term “preventable losses.” Instead of
leaders: find them early, acknowledge their accom-
insuring against risks, FM Global strives to prevent
plishments, educate them, let them communicate
problems.
with top leaders, respond with an offer if they attempt
Kurtzman considers FM Global a common purpose to leave, and reward them with new challenges. As an
organization. The culture is built around consensus, example, Colgate-Palmolive strives to integrate their
so opinions are heard and taken into consideration. leaders into the firm by inviting them to meetings and
Listening and communication are both paramount to presentations, as well as dinner with the CEO.
leadership. This transfer of knowledge from one client
To have a successful organization, trust and an under-
to another is one of the key elements to FM Global’s
standing of each other’s strengths and weaknesses are
success.
important in leaders. Kurtzman found that a com-
Modeling Behavior After the Leader pany’s success is increased by as much as 30 percent
Leadership must saturate all levels of an organization when the founders have worked together in the past
if it is to be successful. Great leadership, says Ronald and know each other well. Kurtzman refers to this
Heifetz, psychiatrist and leadership expert at Har- group as a homogeneous group.
vard, is distributed. Starbuck’s, for example, has seen In a case of longevity or homogeny, the key to working
great ideas come from innovative people working at together is trust. To maximize the upside of a stable
Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 4
Common Purpose Joel Kurtzman

foundation, leaders must have their teams focus on abilities in a way that is balanced. While the invest-
the common purpose of the organization. Companies ment in education may be large, it is well worth the
that are able to make quick, efficient decisions due so return as long as the training falls in line with the
because they have a common purpose, a common lan- organization’s purpose.
guage, and an effective way to set decisions.
Creating a culture of leadership is just as crucial as
FM Global has stability in employment because the continuing education. Everyone within the organiza-
leaders are not overpaid and employees share in the tion should have the same goals. Character, integrity,
success of the company. They have also devised a pro- and honesty are all crucial leadership characteristics.
gram call “off-boarding” so when someone does leave Deciding whether the individual fits can be difficult to
the organization, the company attempts to under- determine; some may have high IQs, but their ability
stand why. to work well with people is also very important. Top
performers know how to work with other people and
Kurtzman refers to FM Global as a flat, or “script-
are also skilled at building support networks. Accord-
less” organization, in which inexperienced people
ing to Kurtzman, organizations should not only focus
feel comfortable calling on more experienced employ-
on training, they must also train people to improve
ees for assistance. To make this kind of organization
their communication skills. Communication can yield
work, leaders should encourage respect. They should
positive results when organizations face a problem.
also encourage their employees to make decisions
and train them efficiently so
these employees feel comfortable Even at the highest levels of an organization, the job of leaders
making decisions on their own. is to bring out the best in people on [their] team and to coach
Employees should also feel com-
them into using all of their talents.
fortable asking for advice.
Leaders are responsible for setting goals, measuring
A leader’s ability to build a support system to execute
progress, holding people accountable, and removing
their plan is also a very important element in the
obstacles to success. They should convey to the orga-
company’s overall success. For example, former CEO
nization that everyone is a leader and a contributor,
Jean-René Fourtou of Rhône-Poulenc made it a point
and that everyone has a say and a share in creating
to connect with the top executives three times a year.
value in the organization. The leader’s job is to help
This method proved to keep people in touch without
everyone in the organization do their jobs. Good
being too intrusive. These meetings allowed ideas to
leaders should be accessible. For example, Gordon
be presented in a casual environment, as well as pres-
Bethune of Continental Airlines invited people at all
ent an opportunity for everyone to get to know each
levels to his office for pizza lunches. Michael Bloom-
other better. FM Global employs a similar strategy,
berg of Bloomberg LLP put his desk in the middle of
holding conferences so the firm’s world leaders can
the newsroom. Leaders should be a part of the team,
meet with each other, discuss ideas, communicate the
not outside of it.
firm’s culture, educate and train each other, facilitate
The Leadership Culture networking, and have fun.
Valuing employees is just as important as educating
The “Us Versus Them” Mentality
them. Learning organizations work well, Kurtzman
Organizations that take on an “us versus them” men-
says, because knowledge increasingly becomes obso-
tality are setting themselves up for failure. Kurtzman
lete. Education and training will keep the individual
suggests focusing on the people the organization
aligned with the organization, and education to cus-
wishes to serve instead of worrying about the compe-
tomers, results in longer relationships. Leaders at
tition. Kurtzman suggests too much competitiveness
every level need to take charge of their careers if they
energizes the opponent. This results in justification to
wish to grow and flourish. The individual, team, and
create a coalition against the competitive organization.
the entire office should strive to upgrade talent and
For example, Microsoft’s early days of highly compet-
Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 5
Common Purpose Joel Kurtzman

itive growth strategy eventually resulted in the Justice idea of introducing Mac to other countries. Steve Jobs’
Department calling them out for unfair competitive positive creativity and his vision permeated through-
practices. Their fight for supremacy against Netscape out the organization, and people emulated it.
created more opposition, further fueled by opposition
An organization’s environment can be much more
from the entire industry and even the government.
positive when rude behaviors, lack of respect for col-
While Microsoft improved its approach, Kurtzman leagues, and dismissive attitudes are dealt with. The
believes many organizations can learn from this highly competitive nature that is often present with
example. The right kind of incentives must be in place; companies in the same industry can also be found
if not, competitiveness can perpetuate and it will within the company. Compared to GM, Ford, and
create an environment where people will do anything Chrysler, Porche has made risks and has been open
to succeed. Rather than focusing on the competition, to new ideas, thus resulting in their success. Detroit’s
leaders should focus on what they can do for their “Big Three,” on the other hand, are not receptive to
clients. This means being flexible and being commit- advice, even if it is within their own organizations.
ted to solving their problems. Great leaders also set This kind of negative behavior, Kurtzman notes, is a
up programs so leaders at any level can assist their large reason the American car companies are suffer-
clients. They should study the competition and fulfill ing.
needs in an improved way.
This kind of toxic environment
also breeds discord, disruption,
Common purpose leadership, at its most basic level, is about
and jealousy between employees.
recognizing people as individuals. Richard Boyatiz, a business pro-
fessor at Case Western Reserve
Even without much difference in products, compa- University, notes that some firms can become toxic
nies can still outcompete their rivals. In his article places to work because of negative attitudes from
“How to Brand Sand,” Sam Hill discusses this point leadership. Dedicated leaders with a solid determina-
with an example of Australian’s Wheat Board. The tion to succeed and a willingness to inject hope into
company could demand higher prices without under- the organization usually see positive results, Kurtz-
cutting farmers from other countries simply because man says. People within the organization should be
their product had few impurities. Companies that willing to work together to solve problems.
are willing to go above and beyond for their custom-
According to Boyatzis, resonant leadership means a
ers will be more successful than the company that
leader who is in tune with his or her organization. An
is highly focused on destroying what they perceive
overall sense of hope and a positive emotional tone
as the enemy in the industry. The luxury hospitality
help an organization reach its goals. Boyatzis notes
industry is an example Kurtzman uses often; success-
that high levels of dissidence, or quarrelsome objec-
ful companies such as Wynn Resorts and Ritz-Carlton
tionable attitudes, keep organizations from reaching
focus on the customer’s experience rather than the
their goals and relates to the high levels of stress
competition.
within an enterprise.
Positivity Goes a Long Way Boyatzis states that people need challenges to face, but
Positive thinking is another way to permeate the they need to be left alone to accomplish their goals.
common purpose throughout the organization. Fear People can actually become physically ill in a toxic
and negative emotions close people down. However, work environment, leading to a high turnover rate.
positive emotions result in an open atmosphere where
people are receptive to guidance, ideas, and new ways The Learning Organization
of thinking. They are also more likely to take risks. The transfer of knowledge is also crucial to an organi-
Apple, a company that really believes computers will zation’s success. Leading is a mental game, Kurtzman
make the world better, also maintains a positive envi- says, and leaders should have people who join them
ronment. For example, they were very receptive to the in pursuit of a shared goal, not just following their
Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 6
Common Purpose Joel Kurtzman

leader. The mental aspect of leadership can be found generations, particularly Generation Y, are natural
in negative and positive examples. Organizations common purpose leaders. Younger workers crave
sometimes exploit fear to accomplish goals; for exam- more variety and stimulation in shorter time frames.
ple, it has been speculated that President Bush used Generation X and Y are more computer literate,
the color-coded terrorist warning system to boost his more welcoming of diversity, have a healthier dose
popularity. On the other hand, IBM’s positive leader- of skepticism, are frequently bored, are interested in
ship and long-running success is due to a group of the environment, and are more apt to join organiza-
individuals who can freely think and who align their tions in which they agree with the mission. They are
interests in pursuit of a common goal. more comfortable as part of a group and are ideal-
istic. People from this generation do not want to get
People have a desire to collaborate now compared
caught in a rut or trapped in a job that has no mean-
to a few years ago. Before everyone was linked elec-
ing to them. Kurtzman believes these generations can
tronically, leaders often organized and developed
endure into the future and thrive in the workforce.
information and hoarded it. This meant followers had
far less information than their
leaders. Great leaders are constantly reading, constantly replenishing
their intellectual capital, constantly generating and developing
Kurtzman discusses three types
of leaders: new ideas.
1. Strategic leaders are often long-term thinkers, Emotional Intelligence Triumphs
have analytical skills, and work well with num-
Kurtzman suggests that leaders do not have to be ruth-
bers.
less in order to guide an organization. William Baker,
2. Operational leaders often think in terms of oper- a Columbia University professor, agrees and remarks
ations; they make sure everything runs on time, that empathy, kindness, and social intelligence are
processes are adequate, and that everything is in all comprised of great leadership. Kurtzman notes
place. that leadership is not about money; he says money-
oriented people are likely to end up in situations they
3. Bridge-builders connect people, transfer knowl-
detest.
edge, and help people within their organization
achieve goals. When a person is unhappy in an organization and
everything has been done to address his or her con-
Kurtzman says that all three types are critical to the
cerns and provide counsel, the individual may be
success of an organization. However, as noted by
doing more harm to the organization than good.
Elliot Jacques, a researcher and psychoanalyst, the
Happiness, says Robert Maxon, president of Sierra
most important factor in what type of leadership role
Nevada College, is important because it boosts peo-
one would assume has to do with how far into the
ples’ energy and helps them connect with life. A
future he or she can think. Jacques stated that a suc-
leader’s job is to make sure the organization is free of
cessful leader should be able to think roughly 20 years
toxins, so negativity must be dealt with quickly.
ahead by employing the strategic way of thinking.
Jacques believed this ability was inherent and could Empathetic leadership is important for business suc-
not be learned. Kurtzman, on the other hand, believes cess, but so is the concept of thought leadership.
that people are more adaptable; he believes that all Great leaders are always generating new ideas, con-
three types of leaders have a purpose within the orga- tinually educating themselves, and disseminate ideas
nization and are imperative to the smooth functioning throughout the organization Any knowledge taken
of the organization. away from training, seminars and conferences should
be shared. This provides an environment where ideas
The New Generations
prevail.
Kurtzman goes on to discuss different generations
and how they relate to the workforce. He says younger It is also important to mix senior employees with

Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 7
Common Purpose Joel Kurtzman

younger generations. Originality requires a mix of Chapter 9: How Leaders Stay Positive and Deter-
people, and ideas do not have to always come from mined
leaders and consultants; they should come from
Chapter 10: Leading is a Mental Game
everyone in the organization.
Chapter 11: Different Strokes for Different Genera-
g g g g
tions

Features of the Book Chapter 12: You Don’t Have to be Ruthless to Lead

Reading Time: 4-6 hours, 212 pages Chapter 13: Ideas Matter

Seasoned leaders as well as emerging leaders will Epilogue: The Future of Leadership
glean valuable information from Kurtzman’s exper- A Leadership Library
tise. Common Purpose is written specifically for
About the Author
people in upper management and those interested in
climbing the corporate ladder. Throughout the book, Index
Kurtzman draws on interviews with CEOs from
a multitude of industries to demonstrate different
styles of leadership. Kurtzman offers his own insight,
combined with other experts’ thoughts, as to why
some of these leadership styles do not work and what
can be done to rectify past issues. Kurtzman utilizes
summary boxes in each chapter to illustrate his main
points. Although the reader can grasp the basic con-
cepts from these bulleted summaries, the book is best
read in its entirety.
The book provides valuable insight into traditional
leadership and provides a constructive discussion
on how CEOs can redefine the traditional hierarchy
structure and change the workplace for the better.

Contents
Foreword
Introduction
Chapter 1: The Leadership Disconnect
Chapter 2: The New Rules of Employment
Chapter 3: Leaders at All Levels
Chapter 4: Internalizing What the Organization
Stands For
Chapter 5: The Best Leaders Are Part of the Group
Chapter 6: Cultivating Curiosity, Not Complacency
Chapter 7: Creating a Culture of Leadership
Chapter 8: We’re All in This Together

Business Book Review® September 21, 2010 • Copyright © 2010 EBSCO Publishing Inc. • All Rights Reserved Page 8
Common Purpose Joel Kurtzman

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