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Ram Charan - Know-How: The 8 Skills That Separate People Who Perform from Those Who Dont

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Ram Charan Know-How: The 8 Skills That Separate People Who Perform from Those Who Dont
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The new grand theory of leadership by Ram Charan . . . The breakthrough book that links know-howthe skills of people who know what they are doing with the personal and psychological traits of the successful leader.How often have you heard someone with a commanding presence deliver a bold vision that turned out to be nothing more than rhetoric and hot air? All too often we mistake the appearance of leadership for the real deal. Without a doubt, intelligence, vision, and the ability to communicate are important. But something big is missing: the know-how of running a businessthe capacity to take it in the right direction, do the right things, make the right decisions, deliver results, and leave the people and the business better off than they were before.For well over four decades, Ram Charan has been learning in the most visceral way the underlying reasons why leaders succeed and fail. As one of the most influential advisers to top management teams of leading companies around the world, he has had a front-row seat to observe the cause and effect of leadership practices and behaviors.Ram Charans insight into the real content of leadership provides you with the eight fundamental skills needed for success in the twenty-first century: Positioning (and, when necessary, repositioning) your business by zeroing in on the central idea that meets customer needs and makes money Connecting the dots by pinpointing patterns of external change ahead of others Shaping the way people work together by leading the social system of your business Judging people by getting to the truth of a person Molding high-energy, high-powered, high-ego people into a working team of leaders in which they equal more than the sum of their parts Knowing the destination where you want to take your business by developing goals that balance what the business can become with what it can realistically achieve Setting laser-sharp priorities that become the road map for meeting your goals Dealing creatively and positively with societal pressures that go beyond the economic value creation activities of your businessKnow-How is the missing link of leadership. By showing how the eight know-hows link to, interact with, and reinforce personal and psychological traits, Ram Charan provides a holistic and innovative portrait of successful leaders of the twenty-first century.

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Table of Contents PRAISE FOR KNOW-HOW If Charan declares that something - photo 1
Table of Contents

PRAISE FOR KNOW-HOW

"If Charan declares that something matters, the chances are that it really does. This new book is a down-to-earth account of what it takes to be an effective leader today."

-Financial Times

"Uniquely Charan. Practical, insightful, application-oriented, and full of wisdom. Read it and then refer to it frequently to enrich your career. A real treasure."

Larry Bossidy, retired chairman and CEO of Honeywell International and coauthor of Execution and Confronting Reality

"Know-How is the distilled wisdom of one of our era's most insightful business minds. How do you achieve great business performance? Ram Charan knows how."

Geoffrey Colvin, editor-at-large, Fortune magazine

"Ram Charan cuts through the fog and "mystique of the leader" with bold, fresh insights into the real substance of business leadership. What is truly pathbreaking is Know-How's integration of the eight skills for running a business with the personal and psychological traits of the successful leader. It is the must-have book if you want to differentiate yourself from the pack."

Bill Conaty, senior vice president, human resources, General Electric

"What Peter Drucker's The Practice of Management and The Effectwe Executive were to the 20th-century industrial age, Ram Charan's Know-How is to the 21st-century global digital knowledge worker age. Brilliant, immensely practical, and comprehensivewith almost self-evident prophetic wisdom. But, as we all know, what is common sense is seldom common practice."

Stephen R. Covey, author of The 7 Habits of Highly Effective People and The 8th Habit

"Know-How brings the complex subject of business leadership down-to-earth with practical advice on what you really need to know to run a business."

Michael J. Critelli, chairman and CEO, Pitney Bowes

"Know-How puts to rest a lot of myths and false assumptions about the job of a leader. In a commonsense, practical way, it provides eight how-tos that are the foundation of leadership. Know-How is a breakthrough book for leaders and those who aspire to a leadership job."

James M. Kilts, Centerview Partners, former chairman and CEO of Gillette

"If you believe (as I do) that 'leaders are made,' or more precisely, choose to lead and to develop their skills as leaders, then you will find Ram Charan's very practical book on the eight 'know-hows' that are the foundation for leadership performance and success a very worthwhile read."

A. G. Lafley, chairman and CEO, Procter & Gamble

"Ram Charan has hit the nail on the head by constructively linking personal attributes and business success. His is an important message at an important time for business leaders."

W. James McNerney Jr., chairman, president, and CEO, The Boeing Company

"This is the leadership book for the new generation. It's not about climbing to the top of the heap. It's about substancebecoming the kind of leader who makes the right decisions time and time again. If you want to make your business, yourself, and your world better, use this book as your guide."

Ron Meyer, president and COO, Universal Studios

ALSO BY RAM CHARAN

Profitable Growth Is Everyone's Business
What the CEO Wants You to Know
Boards at Work
Boards That Deliver

COAUTHORED BY RAM CHARAN

Execution
Confronting Reality
Every Business Is a Growth Business
The Leadership Pipeline
E-Board Strategies
Strategic Management: A Casebook in Policy and Planning

KNOW-HOW

THE 8 SKILLS THAT
SEPARATE PEOPLE WHO PERFORM
FROM THOSE WHO DON'T

RAM CHARAN

WITH
GERI WILLIGAN

Know-How The 8 Skills That Separate People Who Perform from Those Who Dont - image 2

This eBook is copyright material and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased or as strictly permitted by applicable copyright law. Any unauthorised distribution or use of this text may be a direct infringement of the author's and publisher's rights and those responsible may be liable in law accordingly.

ISBN 9781407008141

Version 1.0

www.randomhouse.co.uk

Published by Random House Books 2007

2 4 6 8 10 9 7 5 3

Copyright Ram Charan 2007

Ram Charan has asserted his right under the Copyright, Designs
and Patents Act 1988 to be identified as the author of this work

This electronic book is sold subject to the condition that it shall not by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher's prior consent in any form other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser

First published in the United States m 2007 by Crown Business

Random House Business Books
Random House, 20 Vauxhall Bridge Road,
London SW1V 2SA

www.randomhouse.co.uk

Addresses for companies within The Random House Group Limited can be found at:
www.randomhouse.co.uk/offices.htm

The Random House Group Limited Reg. No. 954009

A CIP catalogue record for this book
is available from the British Library

ISBN: 9781407008141

Version 1.0

Dedicated to the hearts and souls of the joint family
of twelve siblings and cousins living under one roof
for fifty years, whose personal sacrifices
made my formal education possible.

KNOW-HOW

1
KNOW-HOW
The Substance of Successful Leaders

Know-how is what separates leaders who performwho deliver resultsfrom those who don't. It is the hallmark of people who know what they are doing, those who build long-term intrinsic value and hit short-term targets.

What gets in the way of finding people who can perform is the appearance of leadership. All too often I see people being chosen for leadership jobs on the basis of personal traits and characteristics, such as:

  • The seduction of raw intelligence: "He's extremely bright, incisive, and very analytical. I just feel in my gut he can do the job."
  • A commanding : "That presentation was awesome. How she ever boiled down all that data onto the PowerPoints is beyond me. She certainly had the committee in the palm of her hand. Mark my words, she's going to the top."
  • The power of a bold : "What a picture he painted of where we are going, moving forward."
  • The notion of a born leader: "The people in the unit love her. Such a morale builder and motivator!"

Certainly , presence, the ability to communicate, and having a vision are important. But being highly intelligent doesn't mean that a person has the knack for making good business judgments. How many times have you seen people confidently making decisions that turn out to be disastrous? How often have you heard a vision that turned out to be nothing more than rhetoric and hot air?

Personal attributes are just one small slice of the leadership pie, and their value is greatly diminished without know-how, the eight interrelated skills that bring leadership into the realm of profit and loss.

We need leaders who know what they are doing. Change is always with us, but its current magnitude, speed, and depth is unlike what most readers of this book have experienced in their lifetime. A can come from nowhere and grow into a multibillion-dollar business in a few short years, becoming one of the world's most highly valued companies. There are not only huge opportunities but also great pitfalls that can swallow up whole companies and industries. Think for a moment about the challenges Google has presented to companies in the advertising, broadcasting, and publishing industries, to name just a few.

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