One simple way to break this down is to work with the client/customer distinction. The WiseGeek suggests that looking into the history of these words can provide us some direction. The word “customer” is related to “customs” in the sense that a custom is a way of “doing things,” while “client” comes from the Latin cliens meaning dependent or follower. There are plenty of other nuances, but for our purposes, let’s go with:

• Customers – a person or entity who buys goods or services. The customer relationship is based on a transaction of some sort
• Clients – those customers who not only purchase goods or services, but also seek advice. This pushes the relationship to a deeper level

What we have seen over the last decade or so is a transformation of the relationship between our businesses and our customers. There are increasingly sophisticated approaches to customers that provide not just transactional value, but deeper engagement. Sometimes this occurs through customer relationship management systems, branding and social media. Sometimes this occurs through the personal one-on-one relationships we make at the storefront, on the support desk or over the phone. Often these “touchpoints” are monitored, tracked and evaluated. The data is pooled and cross-matched to help businesses improve their processes, products and customer service.

But it strikes me that while we are making an effort to turn our customers into clients, there is also enormous value in understanding customers as customers. This is especially true in the business to business world where we are working mostly with “clients”.

But let us not forget that these clients have customers of their own.

What would we do differently if we needed to reach our clients’ customers? This is not to suggest leapfrogging your clients. But how could you work with your clients to create value that extends beyond your relationship so that it directly impacts your clients’ customers. Perhaps we could call this “co-innovation.”

How do we get there? This is what I call “customer oriented thinking,” and it is something I’ll be investigating in the coming months as part of the innovation program we’re running at the SAP Premier Customer Network.

Nina Nets It Out: We have had decades of customer relationship management and eCommerce – and a slew of terms used to describe how we relate to our customers and clients. Perhaps the real opportunity for business leaders is not in the transaction, but in the deeper relationship that comes from co-innovation.

As with most conferences, it is not always about the mainstage. For example, SAP ran a Women’s Executive Leadership Breakfast event where attendees were treated to a conversation with Jeanne Ross, the director of MIT Sloan School’s Center for Information Systems Research. Tara Degler writes that rather than leading in with a raft of presentation slides, Jeanne shared her story – leaving the audience with three important actionable insights:

1. Work smarter – It is one thing to be busy – but quite another to be “productive.” When you multiply this across your organization, the effect can be profound.
2. Empower your people – Make sure that each and every role in your business is professionalized. Provide the structure to help make your teams successful and give them the power to achieve.
3. Create the space for unlearning – Old habits die hard, so when you want to transform your business and they way that people work, remember that it takes time to unlearn.

But how do you apply this thinking to your own situation? Are you working smarter? Are you empowering yourself? Are you able to unlearn?

Take a look at this brief interview with Shari Temple from Aidmatrix where she talks about the challenges of finding a mentor. While things have changed over the last 20 years, one of the most important steps we can take is (as Art Petty says), ask for a mentor. After all, as this breakfast demonstrates, there is no dearth of women leadership talent.

Nina Nets It Out: It’s great to attend events and be inspired by those you hear and those you meet. The challenge is taking your learnings back into the office with you. If you don’t have a mentor, think about reaching out to someone you respect. It could change your career.

But as we reach the last quarter of the year, leaders will be turning their attention to closing what business they can before the year end, as well as planning for the new year ahead. With the economy remaining tight, we may be tempted to focus only on the short term – securing business, bringing in every last dollar of revenue and squeezing out extraneous costs – leaving the 2010 plan open ended or only half-baked. If you find yourself in this situation, you may want to consider what I call “Do-able Strategy”.

• Direct business engagement – work with your leadership team to identify and prioritize the new business opportunities in your sales pipeline. Determine where best you can inject yourself into the process with a view to closing the deal – or get out of the way and let your team do its job.
• Objectives – scan your opportunity pipeline for the emerging “need states” of your top customers. Are there new issues or business problems appearing on your customer’s horizons? Use these to begin feeding your 2010 strategic objectives. Make sure that these are folded back into any customer discussions that are taking place during the last quarter.
• Authority and responsibility – Now it is time to invest your team with what Wally Bock calls authority and responsibility. Make them responsible for achieving outcomes and then ensure they have the authority to make it happen (remember the do-able strategy is as much about doing as it is about strategy).
• Breakdown – as all the elements of your near and short term plans begin to take shape, it can become overwhelming. Remember to breakdown your strategy into executable programs. Ensure that there is someone responsible for each program.
• Learn – we can always learn from a process. Make sure that your learnings are being recycled into your forward planning. Don’t repeat the same mistakes. The goal is to become a scholar-practitioner.
• Engage the emotions – many leaders tiptoe around emotions. They see them as the messy side-effect of dealing with people. But emotions can supercharge your team. Rather than avoiding emotions, engage them. Talk to your team about your vision. Work to include them in operationalizing it. As Steve Roesler reminds us, “emotions prompt us to act”.

Nina Nets It Out: Sometimes circumstances conspire against our best strategic efforts. Rather than sacrificing longer term planning for short term gain, consider accelerating your planning process. It’s not a substitute for a formal, rigorous plan, but it can alleviate the pressure in the short term.

Think of 20-somethings as a single work force, the best educated there is. In Japan, that work force will shrink by one-fifth in the next decade — a considerable loss of knowledge and skills. At the other end of the age spectrum, state pensions systems face difficulties now, when there are four people of working age to each retired person. By 2030, Japan and Italy will have only two per retiree; by 2050, the ratio will be three to two.

But as I have suggested previously, leaders need to work now to prepare their businesses for a different kind of future. We need to re-think the way that we manage the business of doing business – for economic crisis or not, the landscape in which many of us work will never be the same again. This means that, as leaders, we must now begin the hard work of orienting our organizations, our processes and our business cultures toward a new way of working that is more resilient and flexible – and one that builds learning into the very DNA of our operations. For while the “war for talent” goes through a recession-driven hiatus, this is not a permanent cease-fire. As the leading management author, Gary Hamel suggests:

Sure, it’s a buyer’s market for talent right now, but that won’t always be the case—and in the future, any company that lacks a vital core of Gen F [Facebook] employees will soon find itself stuck in the mud.

Hamel goes on to outline 12 characteristics of online life that will impact our management practices in the years ahead:

1. All ideas compete on an equal footing
2. Contribution counts for more than credentials
3. Hierarchies are natural, not prescribed
4. Leaders serve rather than preside
5. Tasks are chosen, not assigned
6. Groups are self-defining and organizing
7. Resources get attracted, not allocated
8. Power comes from sharing information, not hoarding it
9. Opinions compound and decisions are peer-reviewed
10. Users can veto most policy decisions
11. Intrinsic rewards matter most
12. Hackers are heroes

Now, I could easily write on each of these points, but I would like to concentrate on the last point – hackers are heroes. Having worked in IT companies for many years, I have had the benefit of seeing the power, innovation and energy that can come from genius programmers who push the limits of the work that they do. They truly provide the breakthroughs that we crave. But often this innovation comes at a cost – for while “hackers” make life uncomfortable for the organizations, they are celebrated in online communities. This can lead to a mis-match between the type of employee that we “want” and the type of employee that we “need”.

I have a feeling that, in the future, we will need to find a more cohesive way of bringing these “mavericks” into the fold of corporate life. And the thing is, we can’t wait for Gen Y to force this transition upon us – we should be actively preparing the ground work now. Our future prosperity and success may well depend upon it.

Nina Nets It Out: With so much change underway, you could be forgiven for wanting to “take cover”. However, now is the perfect time to begin the transformations that will pave your way for future success. Begin rethinking the way that your company works with the younger generation of workers. They are, after all, the future leaders of your business.

And while Dan Pink suggests that we have too many left-brain men who are spoiling the pot, many companies are just not designed to allow individual creativity to flourish. So while you may have a strong group of creative people working across your business – ask yourself – are they really working across your business, or are they working in your business?

Gill Corkindale looks to the so-called “creative industries” as a way of breaking out of the standard models of business that we often find ourselves. By looking at the worlds of fashion, advertising and publishing, she suggests, we can out-think the structures that we labor under, and unearth the creativity embedded within our businesses:

1. Fashion. While managers in the fashion industry were clear about the business direction and focus of their roles, they also valued ideas, difference, self-expression and personal growth. These additional focus areas ensured that leadership teams were vital, energetic and individual.

2. Advertising. The open spaces of advertising agencies contributed to the shared experiences and interactions of both junior and senior staff. Self-expression was again focused upon, with all team members encouraged to display their individuality and personal interests.

3. Publishing. While publishing is about creativity, it is also about deadlines. Wrapping rigor around the creative process allows publishers to focus on both the business imperatives and the creative output.

Nina Nets It Out: We all hanker for creativity within our teams, but often find that it is hard to unearth and encourage. Following some examples from other industries can provide leaders with a place to start. Each of these industries promotes the individuality of our team members and validates and encourages their broad creative participation in business.

One of the proven methods of extracting innovation from an otherwise stale organization has been to embark upon “skunkworks” projects. These are projects that are cobbled together by passionate instigators within an organization who see an opportunity to build upon or extend something they have happened across in their day-to-day work.

Gifford Pinchot has termed these people “intrapreneurs”.

Pinchot calls intrapreneurs “the dreamers who do”. They are the people within your organization who make things happen. They take an idea, pull together a team and then deliver the outcome … and when it comes to innovation within your business, you can’t live without them. Why?

The intrapreneur is unusually dedicated. When Texas Instruments analyzed 50 of their successful and unsuccessful product launches, they realized that the failures occurred when a “zealous volunteer champion” was not involved. It was these volunteers, the intrapreneurs, who would persist despite the roadblocks and issues – recruiting others as needed, lobbying for support and refusing to let an idea whither on the vine.

The innovation company, 3M, had the idea for post-it notes kicking around the business for almost thirty years before it was transformed into an “overnight success”. It wasn’t until the right combination of intrapreneurs came together that this office-staple gained traction in the marketplace.

There are many examples of the need for intrapreneurs. But the question remains a personal one – what are YOU doing as a leader to foster intrpreneurial spirit? Are you sponsoring innovative projects? Are you performing the role of “climate maker” – creating what Pinchot calls a widely shared belief in innovation across your enterprise? If not, why not?

It is precisely when the business environment slows that leaders are needed. And perhaps, more importantly, it is in these times when opportunities present themselves unexpectedly. Do you have the teams and resources capable of exploiting these opportunities? Look closely at your village … your intrapreneurs may be closer than you think.

Nina Nets It Out: In tough times, businesses have a tendency to “batten down the hatches”. However, while your competitors are putting their heads down, they may be missing the opportunities that change facilitates. The intrapreneurs in your organization can provide you with a distinct competitive advantage – tap their expertise, passion and commitment to outcomes.

We want the economy to be bailed out, but we don’t want to foot the bill. We want cheaper gas, but we want to continue to drive our vehicles of choice, eschew public transportation and equivocate when it comes to investments in alternative energy sources. We want to be homeowners, but we don’t want to have to save for a down payment or be bridled with uncomfortable mortgage payments. In essence, we want all the rewards with none of the accompanying risks or responsibility.

The role of the leader, however, is different. Challenges, difficulties and setbacks are all part of the package, and we must understand that these are essential components of standard business cycles, ongoing growth and development, and life in general. John McDonnell, former CEO of McDonnell Douglas, noted that “adversity introduces you to yourself.”  Indeed, it makes you come face-to-face with your strengths, weaknesses and abilities to navigate sub-optimal conditions. And it is from the midst of the most challenging conditions that true leaders emerge. Remember if you will just how much adversity Oprah Winfrey confronted in her own life and how she chose to emerge from it all like a phoenix rising from the ashes.

Of course no one likes discomfort, let alone failure. But “the fastest way to succeed,” IBM’s Thomas Watson, Sr., once said, “is to double your failure rate.” The best leaders know that failure is a prerequisite to invention and innovation — in fact, Wes Ball suggests that leaders must nurture others through a failure. Our best products and processes tend to be launched by those willing to both take and encourage risk taking, current and future leaders who are open and able to learn from – and take responsibility for – the subsequent and inevitable mistakes. As Marion Jones’ story demonstrates, failure is not only acceptable but, in many ways, desirable for it rewards us with lessons that could not otherwise be learned.

Challenging times require resilience, an ability to tackle and overcome adversity despite all. Setbacks and upheavals can provide incredible opportunities for innovation and growth, if you’re up to the challenge.  Leaders do not succumb to hardship; they acknowledge difficulties, learn from them and resolve to move forward.

Nina Nets It Out: “When nothing is sure, everything is possible.” – Margaret Drabble. Use these turbulent times to determine acceptable risk tolerance for your organizations, whether you are properly poised for less than ideal conditions, and how you can make the most out of the worst. Differentiate yourself with attitude and creativity. And remember — performance under pressure is a leadership prerequisite.

Marshall Goldsmith tells an interesting story about the behaviors and actions of a CEO, Bob — and how these combine to impact on Bob’s effectiveness as a communicator. Bob had fallen into the well worn trap of believing that those in his team liked being managed in the way that he enjoyed being managed. This presented a challenge:

My job was to make Bob see the problem, which I like to call the “golden-rule fallacy.” He assumed that his people were just like him and, therefore, liked to be treated the same way he did.

As we go about building our businesses, we find natural affinities with some people. We are drawn to them. We may even nurture those who demonstrate capabilities that are like our own. But what of the rest of your village? Sometimes we need to look into a different kind of mirror to understand how to inspire, drive and deliver high performance.

Professor Teresa Amabile conducted research that showed a powerful link between a leader’s behavior and the high performance, innovation and creativity shown by her teams. It boils down to five (yes only five) elements:

1. Emotional support: Clearly, if you consider your team as part of your village, you need to provide some form of emotional support.
2. Positive feedback: Leaders need to provide constructive feedback in a positive manner and also provide additional context to help your team members produce better work.
3. Recognizing good performance: It sounds trite, but publicly acknowledging good work is essential for high performance.
4. Consult with your team: Your village is a vast knowledge base. Use it to the advantage of your business.
5. Collaboration: One of the most powerful roles of the leader is to pitch in. Roll-up your sleeves and help your teams close the deal.

And while each of these elements seem to be “every day”, take a look into a different mirror. Think about what your team see when they work with you. What will they take away? How will your words and actions impact their performance both today and through the week? It is the every day, ordinary touches that can create an extraordinary team performance.

Nina Nets It Out: A leader’s behavior can have a significant impact on the performance of a team. Will your interaction with your team today result in a positive or negative experience? How do you ensure high performance? It is simple — focus on the every day interactions and watch the results.

Brick walls are not there to keep us out. They let us show our dedication.

– Randy Pausch

Randy Pausch was an extraordinary leader. This is his “last lecture” on achieving childhood dreams. The idea for this lecture is based on a series of lectures by recognized academics where they are asked to consider personally important topics and to prepare a presentation as if it was their last public lecture. Learn more about his life and work here.

This exuberant presentation covers many important aspects of leadership. Not only does he cover the importance of leaders recognizing and acting upon their past, present and future; he walks through some of the opportunities and challenges that he faced throughout his career. From his desire to become part of Disney’s Imagineering team through his work at Carnegie-Mellon. But one of the key messages is that leaders succeed when they provide opportunities for others to succeed.

You may know, that Randy Pausch passed away on July 25, 2008.

Nina Nets It Out: “To the extent that you can live on in something, I will live on in this”. Randy Pausch created a lasting legacy not only in his achievements, but in the number of talented leaders that he inspired. Be sure to heed his advice and do all that you can to foster opportunities for those around you. This will prove to be very valuable and rewarding to both you and those around you.

One thing that leaders must learn, especially those that lean toward an inclusive style, is that they are, as with George W. Bush’s nickname, the “decider”.  While they are happy to solicit thoughts and input from others, they must be comfortable with the fact that not everyone will be pleased with the final decision.  But they are not in friendship positions, they are in leadership positions.

A leader’s ultimate responsibility is to the best interests of the business not to any individual or group within the organization.  Of course, ideally, leaders want to be both respected and liked.  However, ultimately leaders must live by the expression “it is better to be respected and not liked than to be liked and not respected.” This is what I mean by “democratic dictatorship”. The success of a leader is in the making of decisions and successfully achieving outcomes or as Jim Estill succinctly states, “Successful People Do Tough Things” — even (or especially) the most democratic of dictators.

Nina Nets It Out: Be sure to understand your role as a leader and always know who your primary responsibility is to.  Don’t fall victim to trying to please all the people around you, as this will ultimately lead to an unachievable expectation.  While asking for input is often beneficial, the final decision and its repercussion is yours and yours alone.