Leadership and Capability
I think leadership is about three things: capability, collaboration, and character. Let me talk briefly about those three, and then I’m going to take your questions. Capability. Of course, when we think about capability, we think about skills, we think about experiences, all of those things are important. But sometimes, the most important capability you can have is the capability to ask a question and hear the answer. Every time you go into a new situation, you have to ask questions to understand what's there. I tell people all the time that the single best leading indicator of whether a business is doing well or a business is doing poorly is customer satisfaction. Customers always know what's wrong. They can't always tell you what they want, but they can always tell you what's wrong. And every time they tell you something that's wrong, it's an opportunity. So I think income statements and balance sheets are lagging indicators, very important. But an income statement or a balance sheet is a representation of decisions already made. Somebody's bought a product, that's revenue you post. A manager's made a decision, that's an expense you post. Lagging indicator. Real important, but you're looking in the rear-view mirror. They're things that tell you where a business is going. Asking the right questions of customers turns out to be really important. Customer sat is a vital leading indicator for businesses. And if you doubt me, way back in 2002, we were going through the proxy battle and the merger, and I made the incredibly outrageous comment that Hewlett-Packard would become the leading technology company in the world, and would beat both IBM and Dell. Everyone thought I was nuts. By the way, it has since happened. But what was interesting: people said, "How do you know you can beat them?" I said, "Well, because we can replicate their cost structure, we can replicate their distribution model, and because if you'll observe, our customer sat is going up, and theirs is...
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