← Success Story with Scott D. Clary
Success Story with Scott D. Clary
Lessons - Fixing the Leadership Crisis That's Destroying Companies | Klaus Kleinfeld - Former Fortune 500 CEO
00:15:05
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- [00:00]
Scott Clary
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Klaus Schwab
Why?
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Scott Clary
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Klaus Schwab
Success Story Partner now what does the future hold for business? If you ask nine experts, you're going to get 10 answers. Bull market. Bear market. Rates will rise. Rates will fall. Honestly, I just wish somebody could invent a crystal ball. But until then, over 41,000 businesses have future proofed their business with NetSuite by Oracle, the number one Cloud ERP bringing accounting, financial management, inventory and HR into one fluid platform. With real time insights and forecasting, you're peering into the future with actionable data. And when you're closing the books in days, not weeks, you're spending less time looking backwards and more time on what's next. Next, if I had needed this product, this is what I'd use. Whether your company is earning millions or even hundreds of millions, NetSuite helps you respond to immediate challenges and seize your biggest opportunities. And speaking of opportunity, download the CFO's guide to AI and machine learning at netsuite.com ScottClary the guide is free to you at netsuite.com Scottclary netsuite.com Scottclay in.
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Scott Clary
This lessons episode, discover how top performers avoid burnout by managing energy instead of time. Learn how small recharge habits like walking or breathing can quickly restore focus. Learn how recognizing your energy zones helps you return from survival mode to peak performance. And learn how having a clear purpose turns scattered effort into focused, meaningful action. I mean you've been, you've been working and you've been building for so long. I guess you, you see a significant difference. For me, I'm 34, so I see all the same people burning out, but it just seems like my peers, it seems like almost like a, a, a prerequisite for building a successful career because so many of them are doing it. I know it's not, but it just seems to be the norm. Right? And if you look at your, your entire career, nobody can look at you and say that you didn't basically accomplish what most people would dream to accomplish. Running. Running publicly traded Fortune 500 companies is pretty much the extreme of stress and performance and whatever you want to accomplish that's right up there. But even coming from you, it's interesting. You're saying that people are still not. The way that people work right now is not a healthy way for people to work. Even though you come from an environment of running one of the largest companies in the world.
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Unknown Expert
Well, but they don't. The interesting thing is many people think, oh, this is great advice, but I don't have the time for it. And what they don't realize is that many of the energy practices do not need much time. You have to have a conceptual understanding. And I give you the extreme example of this. I mean, if you look at top tennis players, the average top games last about more than two hours. And they cannot just say, I go, I have 20 minutes of time, I recharge, even though it's a hot day and I'm playing in Australia. So the Tennis association allows you only 20 seconds between the serves. It's 20 seconds. That's your kind of relaxation time. But what they have learned is how to condition themselves in such a way that in these 20 seconds they can fully recharge. Fully recharge. I mean, not fully, but maximum recharge. And there are techniques around how you do that. And you see it today when you watch a tennis game, they all have their routines and when they get the new balls, they do something with it. Something odd. You know, everybody has an odd, strange routine. They squeeze it, take three balls, squeeze it, throw two away, get another one. Why they do that? You know, they have a movie going through their head, you know, that completely recharges them. This is a learned routine. And these are things that pretty much all of the kind of top notch pros, you know, use today, you know, including also special forces. I mean, everybody uses that. Breathing plays a big important role. Yes, you have to have physical fitness. Yes, no doubt helps. But I think the discovery of saying if I recharge is part of performance. I mean, downtime is productive time. But it doesn't mean that you have to have equal downtime to the productive time. That's not necessary. You can develop microhabits. A good friend of mine, he works in Hong Kong at a high rise, his micro routine is he gives us cell Phone to his assistant, you know, and then drives down on the elevator, you know, takes a few minutes walk around the block, fresh air, goes up again, you know, and. And if somebody calls him, his assistant is right there and says, wait a second, he will come back in the next 10 minutes. I call you back. You know, that's easy, easy. And everybody can do that, you know, and there's a ton of stuff like that that I also wanted to put out and put into the books. Very practical things, you know, to recharge.
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Scott Clary
I think that's important too. I think that even those small things can really help somebody reframe. The worst thing you can do is just sit with your thoughts and stress for hours on end. And now, because we're virtual, I mean, myself included, we don't even leave the house if we don't force ourselves to leave the house. So you just end up sitting with your own thoughts. You have a really good story in the book about the miracle on the Hudson and why this illustrates it. Explain to me why this. You can walk through the story, but explain why it sort of ties back to this concept.
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Unknown Expert
Well, this now comes to the dynamics of energy and what happened. Sadi Sullivan is the captain. You know, it's a nice day and cold like today. It's cold, it's sunny, it's blue sky. And they are going down south, you know, and they are talking to each other, the co pilot and him. And then a flock of geese. They hit a flock of geese while they are ascending, you know, and first one engine goes off, then the other engine go off. And those who know New York, he comes from LaGuardia. He turns to the left. It's where the George Washington Bridge is. Over the George Washington Bridge. Both engine goes off. There's an airport right there. He thinks he can get there, but then he realizes it won't get him there. And then he basically turns left and goes and lands in the Hudson. So the likelihood of landing a plane safely on water is close to zero. So the guy's kind of crazy, but when you see what's been happening is he goes obviously from. He's relaxed. He is in basically almost like in relaxation. It's a beautiful day, they're going home. We had a great time in New York. So his colleague is a good friend, blah, blah, blah. They are talking to each other about what's happening in New York. Boom, these skis come on. He goes from basically relaxation to performance zone to survival zone. Survival zone. What happens in survival zone? Adrenaline. This beautiful thing of Adrenaline and kicks in, you know, hormones and adrenaline is extremely good. It makes us superhuman, you know, so your focus, your focus shifts, you know, all other body functions get reduced. You're completely focused on the task and you are literally superhuman. But then if you stay in that too long, you burn out. Boom. You know, so but what he does, he then switches back to performance zone. You know, he basically, you can see it in the transcript, you know, he first asks the tower, you know, can I lay land there in New Jersey? They give him permission to land. Then he turns around, doesn't even talk to the tower anymore, picks up the microphone and says, prepare for impact to the cabin. And then he lands. So how can somebody do this? He did it purely in performance zone. And why was he able to go with two engines off, landing on that and to go back into performance zone? Because he has trained us in a simulator thousands of times. Not only has he trained it in his training, but he was a trainer from the airline, you know, so obviously, obviously experience helps, you know, if you can move into, into, into a pattern where you say, I know what's going on here, I know how to handle this. And now we're going to land that plane. So he managed to go back between those patterns, you know, Extremely well. Extremely well, you know.
- [09:26]
Scott Clary
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Klaus Schwab
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- [12:22]
Scott Clary
That's it's interesting. And, and you're if you're talking to an entrepreneur or somebody who's earlier on in their career, what would be the advice to manage these different energy zones for sort of peak performance so you don't burn out?
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Unknown Expert
Well, the first one is, I mean relaxation time is productive time. I mean, don't into the fog and think of an ultra marathon where you push and push and push and forget to recharge. Eventually you hit the wall. That's it. No, no. Find a way how you can get into your performance zone and when you feel, yeah, you know what? Do some recharging again. Recharging can be very short. Like my friend in Hong Kong, get down on the elevator, go out, listen to a piece of music or whatever, whatever you like that gives you energy. There's thousands of things. Listen to a painting or whatever or call a friend for four or five minutes, write a nice email or whatever gives you Energy and then get back in it. Just get back in it. Or close your eyes, do a breathing exercise. Gets you back. Gets you back into it. That's one thing. Secondly, whenever you feel you're going from performance zone into survival zone, understand that that has a positive one because you're now superhuman. It has also a positive one because you're expanding your comfort Z. So it's good if you do that once in a while. But the moment this goes on, it's like you're on a clock. Now you have to make sure that you are relatively quickly going back to your performance zone. So in reality, you have to find a way how you frame the situation differently so that you are able to go back into your performance zone. So take an action that gets you out of the survival zone into your performance zone, or train this in a controlled environment like Sally has done. He's been in a simulator in a controlled environment. On smaller. I mean, I've done restructurings many, many times. When it started with small restructurings and they got big, and then they got very big, and I got gigantically big. But if I had done the gigantically big one, I probably would have died. But as I knew going into it, I had a pattern recognition and said, oh, this is happening. Oh, this is happening. So you know how to handle it.
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Scott Clary
You know, you mentioned something. So I want to move on to. I want to move on to some of the restructurings and sort of some transformational leadership stories that you've been a part of. Because I think that, I mean, you have some incredible stories. You can pick which ones I mean, you think are most relevant to the audience. But one that in particular I found interesting was the. I mean, you managed the Siemens X ray division turnaround. You managed to Alcoa from 2008, 2009. There was some crises that you dealt with. So talk to me about. I mean, now we understand sort of the playbook for what is optimal leadership. What is optimal. What is optimal leadership for yourself, for your team, for your company. Now, you've applied this very successfully. So let's talk about how a leader operating in the right mind actually sort of executes.
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Unknown Expert
Well, I mean, I think it brings us to the pinnacle that connects us because on the energy side, the one thing we didn't talk about was purpose. You know, we haven't talked about purpose. And purpose is what a laser does to light. When light is normally diffused, you turn it into laser, it brings it into a beam that can literally go through any material, destroy anything. And that's what purpose does to energy. Energy is diffused. You have it. But the moment you say this is my purpose or these are my purposes, you suddenly have something where the energy goes into Chung, you know, so this is important now purpose on the business side, if you want to translate your own purpose or the purpose of the business into the people who work for you, we would need a vision, you know, we need a vision that makes them understand I'm doing something that has a higher value than just putting together X ray machines, you know, or angiography machines, you know. And the problem there was at Siemens. It was the longest standing division and medical super successful. Super. The birthplace of Siemens Medical. But it has kind of been put into the shadow by the more modern ones like ultrasound, computer tomography, magnetic resonance, and was also not making money. So many people had tried to turn it around and then they gave it to me, kind of another guy trying it out, you know. And I asked them to be able to go to hospitals to see how the equipment is used. And then was the moment when my aha moment. Because I realized when I saw the patient and talked to the doctors that we had something that nobody else had. We actually could use the X ray for not just a diagnosis, but also for the intervention for the cure. And you may remember, you're too young probably to remember, but many other might remember there was a time when surgery was the thing these days. Fortunately, you can do a lot called minimally invasive, you know, so we're literally not even anesthesia as needed for this. And that needs image guidance in most cases, you know. So you need an extra machine to see where is this thing in your body that they are pushing through, you know. So I had this idea then I invited. I invited a young woman to our all hands meeting who I knew whose life was saved, you know, by exactly that. The right diagnosis with our equipment and then also treatment. And didn't tell anybody. She told her story and I gave her. In the medical environment you have stringent regulations. So. So you have to document who worked on what machines. So I gave her the list of all people who had worked on the machines that she was diagnosed and treated with. She read out these names and brought the people on stage. Whoa. I mean, these are people in the northern part of Bavaria who cannot easily be moved. You know, they've seen a lot in their lives, you know, but on that day there were a lot of people with tears in their eyes, you know. So now that and that, I mean in the evening the. The head of the labor union basically told me, klaus, you brought our soul back. You know, so. Because before they saw themselves as a restructuring case and had completely forgotten, completely forgotten what great things they have been doing. And when, I mean, when, I mean, I told some of the people on the shop floor, you know, who were late with their equipment, I said, do you understand that this equipment goes to the U.S. you know, to that little village. The village has just taken the old machine out and now in the radius of about 100 miles, you know, people cannot be diagnosed. Are you aw. This is what's happening. Because we cannot get this machine shipped on time. You know, and the moment people understand this, this is one thing, but the moment they see a patient and realize this could be me, this could be my mother, this could be my sister, you know, that makes all the difference. I mean, so from that on motivational, I don't think we had an issue and business wise, we did the right things.
- [19:33]
Scott Clary
Thanks for tuning in. If you found this valuable, don't forget to hit that subscribe button so you never miss an episode. And if you want to dive deeper into this conversation, check out the links in the description to the full episode. See you in the next one. I have to take a second and thank Northwest Registered Agent for supporting today's episode. Now listen. I know a lot of entrepreneurs listen to this show. If you're an entrepreneur, if you're building a business, you have to listen if you want to get more. When you're launching your next big idea, Northwest Registered Agent lets you establish your entire business identity in just 10 clicks and 10 minutes. For nearly 30 years, they've been the secret weapon for entrepreneurs who want to move fast while getting expert guidance. For just $39 plus state fees, they'll handle your formation, create a custom website and establish your local presence wherever your business takes you. As an entrepreneur myself, what I value most is their one stop business solution. You get everything from formation paperwork to custom domains to trademark registration all in one easy to use account. No more juggling all these multiple services or wasting time figuring out the legal stuff. So don't wait. Protect your privacy, build your brand and set up your business in just 10 clicks and 10 minutes. Visit northwestregisteredagent.com success and start building something amazing. Get more with Northwest registered agent@northwestregisteredagent.com Success Lingoda is a partner of success story. Look, I'll be real with you. My French used to be solid. I learned it in school. I even had decent pronunciation. But when I booked trip to France last year, it was a total blank. I could barely order a croissant without sounding like a tourist. So I jumped into the Lingoda Sprint challenge, and, man, it changed everything. I'd take live classes late at night after podcasting. Only five students, max. Real teachers, real conversations. And in just two months, I went from bonjour to holding full conversations at a Paris cafe. Confidence unlocked. Now, here's the play 30 or 60 classes in 60 days, and if you finish them all, you get 50% cash back. That's basically €4, or $5 per class. That's insane value. Go to try.lingoda.com success_ sprint, and then use my code. Scott Sprint for an extra €20 off on top of their current deal. Registration closes May 5th. Classes start May 12th. Let's get fluent.