Praise for The Success Formula
“Andrew Kakabadse’s book offers unique insights and practical
suggestions. Success, particularly in turbulent and unpredictable
environments, is driven by value and decisions anchored to value.
A recent parliamentary commission on future of management
identified people, purpose, and potential as drivers of success. This
book offers practical suggestions in all three areas.”
Professor Abby Ghobadian, Head of School of Leadership, Organisations
and Behaviour, Henley Business School
“In front of the ‘hard’ leaders are the smart leaders. A world filled with
smart leaders.”
Yvon Pesqueux, Professor, Conservatoire National des
Arts et Métiers, Paris, France
“Understanding what makes a successful organisation is vital in
today’s fast changing environment – The Success Formula explores the
relationship between, values, evidence, strategy and engagement.”
Lesley King-Lewis, CEO, Windsor Leadership
“Finally we have a book which recognizes that organizations cannot
achieve genuine sustainability unless social value is given equal
weighting to shareholder, other stakeholder and financial value.
If there is a strong values base, diversity of thinking and effective
governance, organizations can build long-lasting success.”
Simon Osborne FCIS, Chief Executive ICSA
“This book contains a multitude of insights concerning success that
Andrew has derived from interviews with senior managers from over a
100 organizations in 14 countries. It provides much useful advice as to
how to recognize successful organizations and how to determine what
is required to make success a reality.”
Dr Chris Pierce, CEO, Global Governance Services Ltd., London
“Kakabadse’s extensive global research shows how few top companies
have a proper engagement with their stakeholders and his evidence
reveals the great and sustainable success arise from so doing. A must
read for the C suite and the Board.”
John Board, Dean of Henley Business School
“Once again, Dr Kakabadse’s in depth research draws out governance
and dynamic governance insights, helping us to drive value in our
companies.”
Yasmin Allen BCom, FAICD and Company Director, IAG,
Cochlear and Santos Ltd
“The evidence-based account, and unparalleled access, of Professor
Kakabadse cuts like a knife to the very heart of this complex and
frequently misunderstood subject. This book is a must read for anybody
attempting to come to terms with organizational success - or failure.”
Dr Ian Richardson, Director of Executive Education, Stockholm Business
School, Stockholm University
“I read The Success Formula with great interest, and recommend it to
any business manager who seeks to ensure the health and continuity
of the enterprise he/she leads. Andrew Kakabadse’s guidelines in this
book strike me as convincing and eminently practical.”
André van Heemstra, Former member of the board of Unilever
“This book is about leadership, about sustaining vision and values to
deliver consistent quality, about the humility to respect the team and
the intellectual rigor to challenge its certainties. This is a manual on
how values generate value.”
Dr. Ilia Roubanis, Athens
“The Success Formula is a refreshing read for those leaders committed to
employee engagement and transformational results. It underlines the
role of the leader in building alignment and delivering results based
on trust, authenticity and a clear Organisational purpose.”
John Pollaers, Chairman of the Australian Advanced Manufacturing Council
and Former CEO of Fosters Group and Pacific Brands
“There a few books which combine such outstanding academic
knowledge and real world experience on leadership as this one.
Government and business leaders in Europe should use it when
preparing for the challenge to bring back economic growth and social
progress.”
Dr Stefan Schepers, Secretary General of the independent tripartite High Level
Group on Innovation Policy Management (2012–2014)
“Andrew and David have produced seriously worthwhile insights and
a global perspective on success. They focus on reality coupled with
sound delivery processes as a basis for successful decisions and that’s
just the beginning!”
Peter Jollie, Director, Reliance Rail
“Kakabadse has produced yet another outstanding work, cutting
through the complexity of leadership to the heart of the issue to
provide an accessible and actionable formula for success.”
Robert Galavan, Professor of Strategic Management,
National University of Ireland Maynooth
The Success Formula
The Success Formula
How smart leaders deliver
outstanding value
Andrew Kakabadse
Bloomsbury Information
An imprint of Bloomsbury Publishing Plc
LON DON • N E W DE L H I • N E W YOR K • SY DN EY
Bloomsbury Information
An imprint of Bloomsbury Publishing Plc
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1385 Broadway
London
New York
WC1B 3DP
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UK USA
www.bloomsbury.com
BLOOMSBURY and the Diana logo are trademarks of Bloomsbury Publishing Plc
First published 2015
© Andrew Kakabadse, 2015
Andrew Kakabadse has asserted his right under the Copyright, Designs and Patents Act,
1988, to be identified as Author of this work.
All rights reserved. No part of this publication may be reproduced or transmitted
in any form or by any means, electronic or mechanical, including photocopying,
recording, or any information storage or retrieval system, without prior
permission in writing from the publishers.
No responsibility for loss caused to any individual or organization acting on
or refraining from action as a result of the material in this publication can be
accepted by Bloomsbury or the author.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
ISBN: HB: 978-1-4729-1684-6
ePDF: 978-1-4729-1686-0
ePub: 978-1-4729-1685-3
Library of Congress Cataloging-in-Publication Data
A catalog record for this book is available from the Library of Congress.
Design by Fiona Pike, Pike Design, Winchester
Typeset by Deanta Global Publishing Services, Chennai, India
Contents
About the author
xi
Acknowledgmentsxiii
List of figures
xix
Forewordxxi
Prefacexxiii
Introductionxxv
╇ 1 Understanding value
1
╇ 2 Diversity of thinking
23
╇ 3 Discipline 1—Evidence
43
╇ 4 Discipline 2—Mission
61
╇ 5 Discipline 3—Alignment
75
╇ 6 Discipline 4—Engagement
95
╇ 7 Discipline 5—Leadership
113
╇ 8 Discipline 6—Governance
131
╇ 9 Discipline 7—Wisdom
151
10 Key questions
177
Notes183
Index187
About the author
Andrew Kakabadse is professor of governance and strategic leadership at Henley Business School, UK, and emeritus professor at Cranfield
School of Management. He teaches and consults in corporations and
governments throughout the world. His research covers boards, top
teams, governments, and policy design. Andrew has published fortytwo books, over 240 articles, and eighteen monographs. His books
include Leading the Board (coauthored with Nada Kakabadse), Bilderberg
People (coauthored with Ian Richardson and Nada Kakabadse), and
How to Make Boards Work which was co-edited by Lutgart Van den Berghe.
In 2011 and 2013, he was named in the Thinkers50 ranking of the
world’s top management thinkers.
More information can be found at Andrew’s website: http://www.
kakabadse.com.
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Acknowledgments
I would like to acknowledge with deep gratitude the fantastic inputs and
insights of all those who spared time to be interviewed. Thank you to
• Paul Achleitner, Chairman, Supervisory Board, Deutsche Bank,
Germany
• Achal Agarwal, President, Asia Pacific, Kimberly-Clark, Singapore
• Michael Andrew, Global Chairman and CEO, KPMG, Hong Kong
• Ilana Atlas, Director, Coca Cola Amatil, and portfolio NED,
Australia
• Gihan Attapatu, President, Ball Asia Pacific, Singapore
• Jaspal Bindra, Group Executive Director and Chief Executive Officer
Asia, Standard Chartered Bank, Singapore
• Ian Blackburne, Chairman, Aristocrat, Australia
• Peter Bodin, Chairman, Grant Thornton International, Sweden
• Ken Borda, Chairman, Santos, Australia, and Chairman, Aviva Asia,
Hong Kong
• Graham Bradley, Chairman, Stockland Corporation, and portfolio
NED, Australia
• Alec Brennan, Chairman, EMECO Holdings Limited, Australia
• Berndt Brunow, Chairman, Finnish Food and Drink Industries’
Federation, and Fazer Group, Finland
• Stephen Chipman, CEO, Grant Thornton, LLP, Member firm of
Grant Thornton International Ltd, USA
• David Cunningham, President, Asia Pacific, Federal Express,
Singapore
• Georges Dabaghi, General Manager, Middle East and CIS countries,
Vubiquiti, UAE
• Lord Geoffrey Dear, House of Lords, UK
• Bob Dudley, Group CEO, BP, UK
• Doug Elix, Chairman, Advance Global Advisory Council, Australia,
and retired Senior Vice President, Group Executive Sales and
Distribution, IBM, USA
• Jeff Fettig, Chairman and CEO, Whirlpool, USA
xiv Acknowledgments
• Mark Gainsborough, Executive Vice President, Global Commercial
Business, Royal Dutch Shell, Singapore
• Stephan Gerlich, Chairman, Bayer Group, Mexico
• Chris Gibson-Smith, Chairman, London Stock Exchange, and
Partnership, UK
• Rickard Gustafson, CEO, SAS Airlines, Sweden
• Stig Gustavsson, Vice Chairman, Konecranes, Sweden
• Diane Grady, Director, Macquarie Group, and portfolio NED,
Australia
• Russell Higgins, Director, Telstra, and portfolio NED, Australia
• Sarah Hillier, Team Manager, Northamptonshire County Council, UK
• Jeremy Hunter, President, Henkel Adhesive Technologies, India
• Belinda Hutchinson, Director AGL, and portfolio NED, Australia
• Mike Jeans, Independent NED (Deputy Chairman), Gemserv, UK
• Gunender Kapur, CEO and Managing Director, TPG Wholesale
Private Ltd, India
• Graham Kraehe, Chairman, BlueScope Steel, Australia
• Sanjiv Lamba, Member of the Executive Board, The Linde Group AG,
Germany
• Ronnie Leten, CEO, Atlas Copco, Sweden
• Rod Leaver, CEO, Lend Lease, Asia Region, Singapore
• Lionel Lim, CEO, CA, Asia Pacific, Singapore
• Catherine Livingstone, Chairman, Telstra, and portfolio NED,
Australia
• Kevin Lobo, President & CEO, Stryker Corporation, USA
• Dave Mackay, Director, Woolworths, Australia, and retired President
& CEO, Kellogg Worldwide, USA
• Vadim Makov, Chairman, OMZ Group, Russia
• Charlie Mayfield, Chairman, John Lewis Partnership, UK
• Alexey Marey, CEO, Alfa Bank, Russia
• Trevor Matthews, Chairman Financial Skills Council, and portfolio
NED, Australia
• Kevin McCann, Chairman, Macquarie Group, and Origin Energy
Ltd, Australia
• Paul McClintock, Chairman, Myer Holdings Limited, Australia
• Darshan Mehta, President & CEO, Reliance Brands, Ltd, India
• Bruce Morgan, Director, Origin Energy Ltd, and portfolio NED,
Australia
Acknowledgments xv
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John Neill, Chairman and Group Chief Executive, Unipart Group, UK
Helen Nugent, Chairman, Funds SA and portfolio NED, Australia
Renè Obermann, CEO, Deutsche Telecom, Germany
Michael Olosky, President, Henkel, Asia Pacific, Singapore
Sir John Parker, Chairman, Anglo American, UK
Jonas Persson, President APAC, Assa Abloy, Asia Pacific, Hong Kong
Madhabi Puri Buch, Director, Agora Advisory, and Greater Pacific
Capital, Singapore
Ed Rapp, President, Construction Industries, Caterpillar, Singapore
Monika Ribar, former CEO, Panalpina Group, Switzerland and portfolio NED.
Diane de Saint Victor, General Counsel & Board Secretary, ABB,
NED, Barclays Bank, Switzerland
Ulf “Mark” Schneider, CEO, Fresenius Group, Germany
Steve Sargent, CEO, GE Australia & New Zealand, Australia
Nitin Seth, Managing Director and Country Head, India, Fidelity
Worldwide Investment
Ranjit Shahani, President, Novartis Group, India
N Sivaraman, Whole-Time Director, L&T Finance Holdings Limited,
India
Sergey Soldatenkov, Chairman of Board of Directors, Megafon, Russia
Ajay Srinivasan, CEO, Financial Services, Aditya Birla Group, India
Sam Su, Chairman and CEO, Yum! Brands, China
Rajesh Sud, Managing Director and CEO, Max Life Insurance, India
Ashu Suyash, CEO, L&T Investment Management Limited, India
Robert Swannell, Chairman, Marks and Spencer, UK
Kim Taylor, Group Chairman, Asia Pacific, Johnson & Johnson,
Singapore
Shane Tedjarati, President and CEO, Honeywell Global, High Growth
Regions, Singapore
Michael Treschow, Chairman, Unilever, Sweden
Arvind Uppal, Regional President, Asia South, Whirlpool, India
Rajiv Verma, Group CEO, HT Media Ltd, India
Petteri Walldén, Chairman, Nokian Tyres, Finland
Vladimir Yakunin, President, RZD (Russian Railways), Russia
The designations and organization of each interviewee are as offered at
the time of interview. Numerous respondents now hold different
positions in different enterprises.
xvi Acknowledgments
Thank you also to all who have made this book possible.
My heartfelt gratitude goes to Stuart Crainer and Des Dearlove,
outstanding editors and accomplished authors in their own right. You
have really brought this book to life.
My deepest thanks go to my wife, Professor Nada Kakabadse, and
Madeline Fleure, who patiently and with good humor prepared numerous drafts.
Very special thanks to my Heidrick & Struggles colleagues who have
given so generously of their time to make this project happen.
My thanks to the partners and staff of Heidrick & Struggles, who
arranged the interviews and discussions with top executives worldwide
and developed and coordinated the global surveys.
Thank you to
Torrey Foster, Bill Matthews, and Randall Thorne in America
Vicki Hickson, Russell King, Will Moynahan, Andrew Myers, Anabelle
Parsons, and Dave Tullett in the United Kingdom
Tuomo Salonen in Finland
Alain Deniau in France
Christine Stimpel in Germany
Elise Andström and Carina Nordgren in Sweden
Christina Atchison, Anna Knuckey, and Thomas Liddle in Australia
Yao Li and Linda Zhang in China
Karen Fifer, Robert Knight, Karen Lau, Richard Meiklejohn, Harry
O’Neill, Seth Peterson, and Lily Siu in Hong Kong
Rajiv Inamdar, Neha Jain, Arun Das Mahapatra, Gauri Padmanabhan,
and Puneet Pratap Singh in India and
Stafford Bagot, Karen Choy-Xavier, Charles Moore, Hamish Shaw,
Frazer Wilson, and Alex Yew in Singapore
Acknowledgments xvii
In addition, there are my three Heidrick & Struggles colleagues without
whom this project would never have taken off.
Peter Lever in London championed and supported this project from
the start with his initial thoughts on engagement and alignment. Thank
you, Peter.
My deepest gratitude goes to Steve Mullinjer in Shanghai whose
thoughts on cultural diversity brought an exciting and new dimension
to the original thesis. His support and thoughtful guidance has not
only made this study possible but has enriched it with new insights.
Finally, I wish to convey a very special thank you to David Pumphrey in
Sydney for his facilitation, perseverance, and persuasion in making this
project happen. He guided me through the study and through the writing of the manuscript and ensured that the process ran smoothly. I and
this book have benefited considerably from his generous counsel.
As you can see, this book has been made possible by an extraordinary
level of team work. From those who gave their time for interviews, to
those who organized one meeting after another, to those who managed
the surveys, and to those who were part of the development of the
manuscript, I am grateful for all you have done.
Andrew Kakabadse
List of figures
Figure 2.1 Diversity
40
Figure 6.1 Quality of relationships
100
Figure 6.2 Organizational performance qualities
109
Figure 6.3 Impact of handling awkward or sensitive
discussions at an earlier stage
110
Figure 8.1 Enterprise fault lines
143
Figure 8.2 Input into the development of the
corporate strategy
146
Figure 8.3 Average number of meetings per annum
147
Figure 8.4 Shared view regarding the criteria for
appointments to the Board
148
Figure 8.5 Shared view regarding the criteria for
the appointments to the Executives/
Management Team
148
Figure 9.1 Those involved in determining the strategic
direction of the organization
174
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