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How to be a great CEO? 8 tips Tara Weiss, Forbes | February 27, 2008 John Deere. eBay. Johnson & Johnson. Disparate companies with one critical element in common: leaders who know how to create a sense of loyalty and passion in their employees. In other words, leaders who know how to inspire workers to go the extra mile. Vijay Govindarajan, a professor at the Tuck School of Business at Dartmouth, examines how the most successful leaders do this in his study "The Emotionally Bonded Organization: Why Emotional Infrastructure Matters and How Leaders Can Build It." (It has yet to be published.) In pictures: Govidarajan, also a professor in residence and chief innovation consultant at General Electric, recently discussed with Forbes.com how the best CEOs excite their workforce. Here is the edited transcript. A good example is how the CEO of eBay, Meg Whitman, handled a power outage in California, where the company is based. For 13 days, she stayed in the office 24/7. She slept on a cot and ate all her meals there until everything was restored. She didn't fix the power lines, but her act was symbolic. Instilling rituals. A good example is the tractor company Deere & Co's gold key program. On the day the tractor will be assembled, the company invites the farmer that placed the order to the factory, along with his or her entire family. They are received by a retired employee who walks them through the factory and shows the finishing touches being put on their tractor. Once the tractor is finished, they give them a gold key, and the farmer uses it to start the tractor. It's a powerful scene for employees. They can't help but feel a sense of pride. Social networks. When there's a problem at work, employees tend to go to their boss if they want a problem solved. There are two problems with this. The formal channels have a finite capacity. Also, subordinates might not feel comfortable telling the boss about an issue. General Motors encourages their employees to form affinity networks. These are groups of employees who have things in common, such as an Asian American group or working parents group. For example, in the early 80s Tylenol faced a crisis because six people died after someone in Chicago tampered with the pills. It was clearly established that Johnson & Johnson didn't have any legal responsibility -- they were the victim. But they wanted to do the right thing for their customers. So J&J withdrew Tylenol from every market in the U.S., even though they clearly established that the tampering only occurred in one pharmacy. It took several months for them to come up with a tamper-proof lid, and they spent $100 million between taking the items off the shelf and designing the lid. The competitors benefited by getting all of Tylenol's business. But J&J wanted to show they're serious about their values. Contrast this with how today's pharmaceutical companies deal with a crisis. When Merck dealt with problems with Vioxx they brought their lawyers out to fight the cases, instead of examining how the problem happened in the first place. Most executives are uncomfortable leading emotions. But we must create a sense of belonging at work, since most of us spend as much time there as we do at home. I want the same meaning at work that I have at home. More Specials | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||