Line Management Zebras, Like Most Line Managers, Are Highly Social

LEADERSHIP ™

THE MAGAZINE OF LEADERSHIP DEVELOPMENT, MANAGERIAL EFFECTIVENESS, AND ORGANIZATIONAL PRODUCTIVITY VOL.Excellence 24 NO. 12 DECEMBER 2007

Line Management Zebras, like most line managers, are highly social. Some form family groups that remain together for a lifetime, even drinking together at sunset on the waterline. The challenge now is to reinvent management to gain a competitive advantage.

GARY HAMEL AND Judgment Calls STEPHEN H. BAUM SUSAN J. BETHANIS LOWELL BRYAN Exercise wisdom in Inside CEOs Conversations Reinventing Management three phases...... 7 Seize or create some Create a culture that Bring energy to this shaping experiences. . . . 12 welcomes discussion. . . 17 area of innovation...... 3 JIM TRINKA Leadership Legacies STEVEN BARRY, LOUISE BRUNA MARTINUZZI CLAYTON CHRISTENSEN Model transparency AXON & TOM ATKINSON A Leader’s Mood Beyond Price and keep learning...... 8 Ready for Take-Off Do you leave afterglow Look at performance Meet the challenge or aftermath?...... 18 dimensions...... 4 JIM MCNERNEY of leading growth...... 13 Innovation Myths DAVID MCNALLY HAL ADLER Be inspired more by J. ROBERT BEYSTER New Vision, New Year Key Leader your customers...... 9 Culture of Success You and I are born Characteristics Observe these nine to create a future...... 19 These are gleaned from JOHN IZZO timeless principles. . . . . 14 ALAN TODD the best companies...... 5 The Buzz Factor Follow four paths MARSHALL GOLDSMITH War for Leaders Improve your model for EILEEN MCDARGH to corporate soul...... 10 Achieving Goals developing leaders . . . . .19 Lessons for Leaders Help people set and Note that gratitude LANCE DUBLIN achieve stretch goals. . . .15 LOIS J. ZACHARY AND transcends latitudes. . . . . 6 Only People Change. . 11 LORY A. FISCHLER DEEPAK MALHOTRA The FACT Model ALLAN COX AND MAX H. BAZERMAN NOEL TICHY AND It’s an alignment and WARREN BENNIS Collaborative Relations. 11 Conflicts of Interest. . .16 engagement tool...... 20 Subscription and Renewal Rates: $129 annual (12 issues) E . D . I . T . O . R’S N. O . T . E $199 two years (24 issues) $279 three years (36 issues) (Canadian/foreign add $40 U.S. postage per year.)

Corporate Bulk Rates (to same address) Personal Side of Leadership $109 each for 6 to 25 $99 each for 26 to 99 Call for rates on more than 100 copies: The top 100 minds on personal development. 1-877-250-1983 Back Issues: $10.00 each Fax (one article): $8.00 by Ken Shelton 2. Character: values, ethics, beliefs, pur- Leadership Excellence (ISSN 8756-2308), published monthly by Executive Excellence Publishing, pose, mission, integrity, walk the talk. 1806 North 1120 West, Provo, UT 84604. ince 1995, we have pub- 3. Principles: big message, point of view, Article Reprints: Slished Personal Excellence, tenets, main points. For reprints of 100 or more, please contact the the magazine of life leader- 4. Personality: charisma, style, originali- editorial department at 801-375-4060 or send email to [email protected]. ship; however, this is the first year, we have ty, authenticity, one of a kind. ranked the 100 top minds on the personal 5. Performance: inspiring action, real- Internet Address: http://www.eep.com side of leadership, using eight criteria (see world performance, work ethic. Editorial Purpose: below) and a seven-dimension model: phys- 6. Experience: beyond local and regional, Our mission is to promote personal and organizational leadership based on constructive values, ical, mental, social/emo- more national and inter- sound ethics, and timeless principles. tional, professional, national. Editorial: financial, spiritual, service. 7. Expression sub- All correspondence, articles, letters, and requests stance and style in writ- to reprint articles should be sent to: Editorial Department, Executive Excellence, 1806 North Criteria for Ranking ing, speaking, coaching, 1120 West, Provo, Utah 84604; 801-375-4060, or What does it take today consulting, mentoring, [email protected] to be considered a top training, or teaching. Contributing Editors: Chip Bell, Dianna Booher, Kevin Cashman, thought leader in the field 8. Influence: differ- Jim Loehr, Norm Smallwood, Joel Barker, Joseph of personal leadership ence, results, change, Grenny, Jim Kouzes development? As with transformation. Wayne Dyer Oprah Winfrey Executive Excellence Publishing: Leadership Excellence (see Ken Shelton, Editor-in-Chief, CEO The Excellence 100 Sean Beck, Circulation Manager our ranking of the top 100 Geoff Pace, Sales Manager thought leaders in team For the past 13 years, Nancy Low, Business Manager and organizational leader- we have published the Allan Jensen, Chief Information Officer ship development in the best minds in the field The table of contents art is a detail from Waterline (image cropped) © Joshua Spies, and November issue of LE), of personal and profes- is courtesy of the artist and art print publish- the standards and expecta- sional development er Greenwich Workshop. tions keep rising. The around a Seven For additional information on artwork by coaches and consultants, Dimension Model of Joshua Spies, please contact: Greenwich Workshop authors and speakers, Personal Excellence. And 151 Main Street mentors and gurus who soon, we will introduce Saymour, CT 06483 Laura Schlessinger Dr. Phil 1-800-243-4246 make our Personal our searchable archive of www.greenwichworkshop.com Excellence 100 Personal list today score well on the some 3,200 PE articles in the new Full view of cover art. following eight criteria: Coach CD and on-line access. 1. Preparation: Academic, professional, Here’s our 2007 listing of the Top 100 and life preparation. thought leaders:

PERSONAL 14. Cheryl Richardson 36. John Maxwell 58. David Brownstein 80. Richard N. Bolles 15. Zig Ziglar 37. Patricia Fripp 59. Andy Andrews 81. Jason Womack THE Copyright © 2007 Executive Excellence Publishing.No 16. Peter Block 38. Matthew Kelly 60. Joel Barker 82. Nido Qubein part of this publication may be reproduced or transmit- 17. Marshall Goldsmith 39. Ben/Rosamund Zander 61. Suze Orman 83. Connie Podesta ted without written permission from the publisher. xcellence Quotations must be credited. xcellence 18. Nathaniel Branden 40. Ken Shelton 62. Julie Fuimano 84. Dianna Booher E 100 19. Oprah Winfrey 41. Ken Blanchard 63. Bob Davies 85. David Bach EXCELLENCE 20. Stephen R. Covey 42. Chris Widener 64. Noah Blumenthal 86. Lance Secretan 21. Lou Tice 43. Eileen McDargh 65. Victoria Castle 87. Matthew May 1. Robert Kiyosaki 22. Tom Crum 44. Beverly Kaye 66. Jim Cathcart 88. Bob Green 2. Wayne Dyer 23. David Allen 45. Bruce Cryer 67. Fran Harris 89. Robert Moss 3. Les Brown 24. Phil McGraw 46. Mark Victor Hansen 68. Patrick Lencioni 90. Martin Seligman 4. Joel Osteen 25. Guy Kawasaki 47. Matthew Cossolotto 69. Tony Schwartz 91. Jack Groppel 5. Tom Peters 26. Richard Chang 48. Robert Silverstone 70. Bob Danzig 92. Mike Krzyzewski 6. Depak Chopra 27. Jim Rohn 49. Kathy Smith 71. Jimmy Calano 93. Valorie Burton 7. Laura Schlessinger 28. Tony Allesandra 50. Amanda Gore 72. Mary Lee LaBay 94. Neil Fiore 8. Jim Loehr 29. Paul Zane Pilzer 51. Suzy Allegra 73. John Izzo 95. John Strelecky 9. Dave Ulrich 30. Marc Allen 52. Phil Geldart 74. Jay Forte 96. Deb D’Lorio 10. Charles Garfield 31. Jack Canfield 53. Charlene Proctor 75. Wolf Rinke 97. Susan Apollen 11. Lance Armstrong 32. Eileen McDargh 54. Tony Robbins 76. Leslie Froene 98.Michael Shenkman 12. Denis Waitley 33. Debbie Allen 55. Hyrum Smith 77. John Scherer 99. Linda Nacif 13. Brian Tracy 34. Leslie Groene 56. Dave Durand 78. Angelica Wagner 100.Tim Gallwey 35. Steve Young 57. Jim Meier 79. Keith Ferrazzi

2 Leadership Excellence MANAGEMENT INNOVATION overtly hierarchical management. Increasingly, the work of management won’t be done by managers—it will be pushed out to the periphery Reinventing Management and embedded in systems. Thinking- Old models of managing people lag behind the times. intensive people are increasingly self- directed—or directed as much by their the gifts of creativity and passion and peers as they are by supervisors. The initiative?” You can’t command those challenge is to enable such people to capabilities. Imagination and commit- make thousands of individual deci- ment are things that people choose to sions about how to live and work with- bring to work every day—or not. in the infrastructure you create. You’ve The technology of management is got to make it easy and natural for changing radically for three reasons. people to work alone and with others. by Gary Hamel and Lowell Bryan First, powerful new tools for coordi- Many executives believe that while a nating human effort are profoundly few people may be clever and creative, OU’RE CHALLENGED TO CHANGE IN changing the work of management. most folks aren’t (creative apartheid). Yways for which you have no Second, we face increasing demand for Great companies, like Toyota, mobilize precedent because your current deci- companies to be adaptable, innovative, the intelligence of “ordinary” workers. sion-making practices, designs, and and exciting places to work. Third, we Going forward, no company can afford employee and customer relations can’t face a revolution in expectations, as to waste one iota of imagination and guarantee your survival. Since old young employees—the first intellectual power. models of managing people and com- generation that has grown You need to bring talent panies lag behind the need for collab- up on the Web—assume or knowledge marketplaces oration and wealth creation, you must that your contribution inside, build formal net- bring the same energy to innovative should be judged simply works, introduce dynamic management that you bring to innov- on the merits of what you management principles, ative products and services. do, not on the basis of your enable peer-based decision- Only new approaches to managing title, credentials, or provi- making, and widely dis- people and organizing talent to maxi- dence. They’ve drawn this tribute the tools of mize wealth creation will provide lesson from their experi- creativity in order that competitive advantage. As you dis- ence with the “thoughtoc- ideas compete on equal card management orthodoxy, you’ll racy” of cyberspace. footing, strategies are built need to balance revolutionary think- The old management models are from the bottom up, and power is a ing with practical experimentation to ineffective at organizing the thinking- function of competence and contribution. achieve innovative management. intensive work of self-directed people To become management innovators, As we help leaders innovate, we who need to make subjective judg- leaders must think explicitly about the feel as if we’re trying to teach dogs to ments based upon their special knowl- orthodoxies—the habits, dogmas, and walk on their hind legs. Sure, if we get edge to create wealth. For such work, conceits—that bind their thinking. For the right people in the room, create we need a model that uses hierarchical example, many people believe that it the right incentives, and eliminate the decision-making only for activities that takes a crisis to trigger change, and yet distractions, we can spur innovation. need that authority, such as allocating it’s important to ask, “Is this a law of But the moment we turn our backs, resources, appointing people to jobs, or physics, or is crisis-driven change the the dog is on all fours again. holding people accountable—yet consequence of what we designed into Organizations lack innovation enables self-directed professionals to our management system years ago?” because management was designed to collaborate to create value and profits. We argue it’s the latter. In most compa- do things with replicability, at ever- Your biggest challenge will be nies, the authority to set strategy and increasing scale and efficiency. Now attracting and retaining top talent, and direction is concentrated at the top. there’s a new set of challenges: How then making profits off those people. Hence, a few people at the top hold the do you build nimble organizations? Leading companies combine talent, capacity to change hostage to their How do you mobilize and monetize technology, and organizational design own ability to adapt and to change. To the imagination of all employees daily. to generate much higher profits per change that reality, you have to change How do you create engaging places to employee. So the trick becomes, “How the distribution of power. work? To meet these challenges, you do I hire talent that I can profit from?” To get people to work differently, need to reinvent management. The secret is creating a culture in you may need to change the basic met- The Internet makes it possible to which you can steadily raise the ric for performance. Should it be return amplify and aggregate human capa- returns on human capital. The combi- on capital or profit per employee? bilities in new ways, but most CEOs nation of technology and talent is a Once you decide, you can launch ini- don’t know how these developments powerful catalyst for value creation, tiatives aimed at achieving your goals. change the way they must organize, but you must abandon the notion that You need to stage-gate the initiatives to lead, allocate resources, plan, hire, and strategy should be set at the top. In manage the risks of innovating. Risk motivate—the work of managing. managing creative-thinking people, stops innovation. CEOs can be terrified The old model was, “How do you you have to separate the work of man- of disruption because it puts at risk the get people to serve the organization’s aging from the notion of managers as ability to meet quarterly earnings. You goals?” Today we have to ask, “How a distinct and privileged class. Highly need a bridge so that people can be do you build organizations that merit talented people won’t put up with an innovative and still keep their jobs. Leadership Excellence 3 If you take the principles of private MANAGEMENT INNOVATION At first glance, it seems Amazon at equity, venture capital, and R&D and least has a differentiated business bring them inside the company to model that enables it to make good stage-gate your investments in innova- Beyond Price money at low price points. After all, tion, you can learn what works and Make it simpler and easier. key to Amazon’s success over the past then scale it, without taking excessive decade has been its low-cost business risk. You can’t see in advance the ulti- model, powered by Amazon’s mastery mate answer, because it lies in discov- by Clayton Christensen of its supply chain. That model works ering the operating detail to make new brilliantly for physical products, but it ideas work. You can see the broad doesn’t naturally port to virtual prod- directions, but not how they work—or PPLE HAS HAD A ucts that don’t require physical distrib- predict the consequences of the design Aremarkable five- ution and fulfillment. For these decisions you make. You need to dis- year run. Earlier this products, charging lower prices is sim- cover those through trial and error. year, it shipped its 100 millionth iPod. ply a way to make less money. When it comes to reinventing man- Macintosh sales are surging. iTunes Amazon could have chosen an all- agement, you must set aggressive owns the online music market. Apple’s you-can-eat subscription model or an objectives. You can’t tear up all the foray into the mobile phone market has offering of free music from no-name track at once and expose a company to created hype. But now Amazon.com is bands. It also could have tried to create an intolerable level of operational risk. opening its low-cost, on-line virtual novel revenue-sharing agreements with Yet you must be as purposeful and cre- music store, offering music with less providers of MP3 players (rumors say ative in thinking about management restrictive copyright protection and that Amazon.com will produce its own systems and processes as you are in lower prices than Apple’s iTunes store. e-reader for the digital book space). But thinking about R&D or new products. Should Apple shareholders worry? Amazon’s music model isn’t unique. It’s possible to experiment with Not much. Lower prices don’t trans- Amazon.com’s strategy of undercut- management by setting clear bound- late to market success. Amazon’s offer- ting Apple isn’t a recipe for disruptive aries around what risks you’re willing ing will struggle unless it takes a more success. It’s simply charging less money to take and then challenging people to innovative approach to selling music. for an inferior service. Amazon could test new ideas within the boundaries. The songs sold on “AmazonMP3” have stick at this long enough to suck all the To allocate resources wisely to cre- no Digital Rights Management (DRM), profits out of music sales, which could ate innovation and scale it to create meaning consumers can do what they hurt Apple’s long-term profit potential wealth, you need “the voice of the want with them: burn them as its devices commoditize. user” front and center—the voice of onto CDs, use them on mul- Our bet is that Amazon will those whose work is influenced by the tiple computers, and put find its results disappoint- core management processes. These them on any device capable ing and re-trench. people know which processes choke of playing audio files in the Price is important, but it innovation, impede adaptability, and MP3 format. Most songs isn’t the only thing that frustrate them. Yet, few leaders make sold in Apple’s store can be matters. If all else is equal, innovation everyone’s responsibility. played only on Apple’s price is critical. But making Leaders need to ask employees four music players or some com- things simpler and easier questions: 1) How have you been puters. AmazonMP3 sells can earn price premiums. trained as an innovator? 2) If you have songs for $0.89, 10 percent Remember when Apple a new idea, what must you go through less than the $0.99 price tag started selling songs via to get experimental capital, say 20 per- at Apple’s iTunes store. On the flip side, iTunes? Some pundits said it would cent of your time and $5,000, to test it? Amazon offers limited selection, lacking flop because of all the free content 3) Are you measured on your innova- part of Universal Music Group’s catalog available on the Web. That content was tion performance or your team’s inno- and the song catalog from Warner free, but the quality was variable. vation, and does it influence your Music Group and Sony BMG. Many consumers were willing to pay compensation? 4) Do the management A low-cost strategy is more likely to modest prices for more convenient, processes help you work as an innova- succeed when it: 1) targets customers reliable access to quality music. tor or get in the way? You’ll likely dis- who are overshot by the performance Don’t assume the lowest price wins. cover a big gap between the rhetoric of existing products; 2) offers tradeoffs Look at performance dimensions such and reality of innovation. that appeal to those customers; and 3) as functionality, reliability, and conve- Principles of standardization, spe- enables the provider to prosper at these nience. Assess whether customers will cialization, and hierarchy are inade- new, low prices. Amazon’s approach tolerate different trade-offs, whether a quate to meet the challenges ahead. The doesn’t meet these characteristics. There would-be disruptor provides “good ability to create wealth is being liberat- are no signals that suggest iTunes over- enough” performance along critical ed from the inputs of labor and capital. shoots its customers. People seem happy performance dimensions, and whether Ideas are being monetized in new to pay reasonable prices to obtain a great the disruptor has a business model ways, and the world is richer in finan- music selection that integrates seamless- that makes lower prices attractive. If cial wealth and in more stimulating ly with their computer and music player. these conditions aren’t met, a low- work and more valuable products. LE Also, Amazon’s offering is not so priced offering will still struggle. LE compelling. Its strategy is to have con- Gary Hamel is coauthor with Bill Breen of The Future of Clayton Christensen is a Harvard Business School professor, Management (HBS Press), and Lowell L. Bryan is coauthor sumers pay a marginally lower price author of Strategy & Innovation and founder of Innosight, a con- with Claudia I. Joyce of Mobilizing Minds (McGraw Hill). per song, but this price comes at the sulting and training company that creates new growth through Visit www.mckinsey.com. cost of less choice, worse integration, innovation. Email [email protected]. ACTION: Engage in management innovation. and an inferior interface. ACTION: Reconsider your pricing strategy. 4 Leadership Excellence LEADERSHIP CHARACTERISTICS chance to climb a 14,000 foot mountain in Colorado with company leaders. Having a healthy company is such an Key Leader Characteristics important goal for the leadership that it is measured, and people are held Taken from the best companies to work for. accountable to results. People there set annual health goals, agreed to in partnership with the company nurse and by Hal Adler same approach to employees as they fitness director. If a person falls short do to customer service. Befitting its of their health goals, it impacts their non-bureaucratic culture (new compensation, just as missing their EADERS OFTEN ASK ME employees are not given handbooks sales goals might. People are held Lwhat they can do to but instead told to do whatever it accountable to goals, but the company create a Great Place to takes to please the customer), leaders is there to help in every way possible. Work. Our model is recognized as the address issues raised by employees At Pfizer, the ability to lead teams standard. We recognize companies for and implement changes, just as they and build trust was such an important their achievements through our Best would customer complaints. By taking metric for CEO Henry McKinnell that Companies lists; help leaders create and action on these ideas, they build trust. he posted his performance review on sustain great workplace cultures; and 2. They move beyond the status quo. the company intranet—including neg- share resources and best practices. We’re often asked by leaders how their atives, such as the need to coach his Most leaders want to create a great practices compare to the 100 Best. executives more, to work more closely place to work, and they then ask what These companies offer a great bench- with them on problem-solving, and to they can do; however, this is the mark, and we find that leaders within critique more constructively. He then wrong question. Great workplaces them take bold action in support of posted a personal development plan and not-so-great workplaces have their people, raising the benchmark. designed to improve his weaknesses, many of the same things in place. Genentech celebrates successes with graphically demonstrating the open- Town hall meetings, breakfast with grand parties. One celebration honor- ness he wants from all his people. the CEO, onsite day-care centers, sub- ing the company’s 30-year anniversary 4. They are passionate about values sidized food service, flexible sched- featured a who’s who of popular (but and culture. Values are tied to success ules, work-life integration programs, measures, and the leaders are very and competitive benefits are all posi- familiar with the values. Their vigor tive things. What sets the best compa- for values and culture is contagious. nies apart, however, is how such At American Fidelity Assurance, Bill practices are delivered, to what degree Cameron, third-generation CEO of this they build relationships, and to what privately held insurance firm, sees his degree they foster trust—the corner- primary responsibility as “keeper of stone of great workplace cultures. the culture.” Values such as Always Fair, Flexible, and Future Oriented are Four Characteristics not merely spoken—they leap out at Leaders in the best workplaces exe- you in a tangible way. According to cute policies and practices in a way Bill, he is doing his job well if he can that positively reinforces their unique carefully selected) music acts that hire people who are smarter than he in culture. Great leaders at great work- appealed to different demographics, their areas of expertise. This allows places share four characteristics: sending the message that employees of him to focus on assuring that AFA’s 1. They have open channels of com- all age groups are important and con- culture—its most important competi- munication that lead to collaboration tribute to the company’s success. tive advantage—is thriving. and inclusion. These leaders are open Whole Foods shares the salaries of Servant leadership turns the hierar- with information, interested in learn- all its employees in its Salary Disclosure chical approach upside down. As a ing what employees think, and incor- Report. At Whole Foods, it is so impor- servant leader, you serve and work for porate their ideas into doing business. tant that people know they are paid those who report to you to assure their These leaders not only inform people fairly relative to their peers and man- success. TD Industries, a mainstay in about issues affecting them but agement that they share the numbers. the 100 Best, embrace this approach. involve them in decisions. When done for the right reasons in the Every partner (employee) works in a Lincoln Industries, a metal finish- right way, this practice builds trust in cubicle, not an office, including CEO ing company, has a monthly lunch leaders and in the system itself. Jack Lowe, Jr. Partners are encouraged roundtable. Senior leaders invite 25 3. They are very selective about to go to anyone in the company to people to join them in a meal and ask what to measure and why. Great lead- obtain any information they need. them questions. One young man ers know what makes their unique In great organizations, leadership asked the president about an upcom- culture tick and measure accordingly. behaviors reinforce the values and cul- ing acquisition. Informed and empow- A clear and accurate understanding of tural mores. Leaders build trust by ered, he left with a new understand- their culture allows them to choose modeling the four key characteristics. LE ing of the business strategy. and reward measures selectively. Since strong communication is two- At Lincoln Industries, employees Hal Adler is President of Great Place to Work Institute, con- ducting research on the characteristics of great workplaces. way, listening to employees is as are measured and rewarded for well- Visit www.greatplacetowork.com. important as delivering timely mes- ness. The top award consists of mem- sages. At Nordstrom, leaders take the bership in the Platinum Club and a ACTION: Cultivate these four characteristics. Leadership Excellence 5 LEADERSHIP LESSONS rope to the stranded crew, and together they created a pulley system for retrieving the barrel. While everyone was still concerned, taking action pro- Lessons for Leaders vided some comfort. Hand-wringing accomplishes noth- From the highest mountains. ing. Action gives a level of control over what might seem uncontrollable. A leader helps people take that action. by Eileen McDargh never have known Post-It-Notes. Had 5. Everyone deserves to be welcomed Larry Page and Sergey Brin ignored the home. When the stranded crew unexpected response to their simple appeared at day break, we cheered, HEN I JOINED AN search engine methodology, the word sang and welcomed them “home”. Wexpedition Google would not have become a com- Their faces glowed with a sense that through two remote mon word in our vocabulary. we weren’t just customers to serve, provinces of the Indian Himalayas, I 3. The more critical the effort, the managers to follow, but individuals was constantly overtaken by ah-hah more teamwork is required. The rivers who cared for their well-being. They moments that held lessons for leaders. of the western Himalayas cascade redoubled their efforts to work for us. Here are six principles: from melting glaciers. At night, when We all want to be welcomed and 1. Watch for patterns—different trees the glaciers freeze, water level is cheered. Whether in the remote regions grow at different elevations. The apple reduced. The timing of a crossing is of India or in company meeting rooms, trees of the Kullu Valley could not sur- critical, as water rises along with the people deserve to feel that someone has vive at Rohtang Pass. Nature allows sun. Rocks and debris swirl into seen their effort, hard work, and long for adaptation, to a point. As leaders, tumultuous rapids. Crossing alone can hours. The degree of engagement and we must know where we belong, what be suicidal. We created a human chain, retention would increase exponentially adaptations we can make, and how to grasping each other by wrists (not if leaders welcomed people “home”. help people find the best match for hands) and alternated smaller team 6. Gratitude transcends latitudes. their growth and abilities. members with larger ones. We suc- Regardless of nationality or geography, As the journey became more diffi- ceeded, cold and battered, but safe. people respond to expressions of grati- cult, our wise guide Ankit Sood tude. And the more personal the voiced his concern in a way that expression, the deeper the connection. enabled us to gracefully examine our While it is customary to pool money skill levels. Four of our party self- and give a bonus to the crew, our expe- selected to not continue. That showed dition wanted to extend a more inti- wisdom and courage, as they might mate thank-you. After all, these men have hurt themselves and the rest of had put our well-being ahead of their the group. Ankit paved the way for own. They paid attention to our per- that decision yet was prepared to take sonal needs, even found a way to bake them to a lower elevation had they a cake at 15,000 feet when they discov- insisted on continuing. ered that two of us had birthdays. A leader gives followers a chance Our solution was to gift them with to evaluate their own performance but personal items we knew they could use, is also prepared to transfer or termi- How often do we encounter the lead- including my new boots, thermal jacket, nate an employee who is not doing ers who insist on “going it alone” in a ski hat, and my husband’s favorite the job at hand, damaging the morale critical situation? To ask for help is per- parka. Our party left gloves, socks, and performance of a team. ceived as a weakness. Yet, the strength medicines, thermals, and bags of trail 2. Expect the unexpected and deal of collective brains and brawn can pro- mix and jerky. And we gave money to with it. Change is one thing. The unex- duce a better result. There is strength in have everything cleaned and restored. pected adversity or opportunity is numbers and in knowing how to opti- When gratitude comes from the something else. Great leaders live in the mize the strengths of team members. heart, is personal, unexpected, and out- present moment and make decisions 4. Action is the antidote for anxiety. of-the-ordinary, amazing linkages are based upon what is before them. As we We made it in time to cross the danger- created. The gifts showed that we had climbed higher into Spiti, the remote ous river that had claimed six lives. But observed their life and their needs. Himalayan cold semi-desert region, other members of our expedition crew Spontaneous appreciation that recog- Ankit learned that the Dali Lama were not so lucky. Their pace had been nizes the uniqueness of an individual would be teaching at a monastery in slowed by rounding up pack horses. In beats standard reward programs. the village of Nako. To venture there horror, we watched these men try three My expedition partners and I will meant changing plans on a dime, com- times to cross, spinning against rapids continue our relationships. In effect, we pleting bureaucratic paperwork, and and almost drowning. They had to stay have created a new company through going through time-consuming check- on the rocks and wait until morning. collaboration, cooperation, and consid- points. However the chance to see a I could see the anxiety in the eyes of eration. That’s a final lesson. LE world leader in a special setting was an our leader. While we hiked ahead to opportunity not to be missed. make camp, he devised a plan. With Eileen McDargh is ranked among LE’s top 100 thought leaders. She is the author of, Gifts from the Mountain and Talk Ain’t In business, had 3M ignored an another team member, he filled a Cheap—It’s Priceless. Visit www.eileenmcdargh.com. engineer’s idea that a less-than-sticky water-proof barrel with food, warmer glue could be useful, the world would clothes, and a small tent. He hurled a ACTION: Learn lessons from your expeditions. 6 Leadership Excellence LEADERSHIP JUDGMENT Chancellor Joel Klein transformed and the right people on your team and revitalized the city’s school system developing up-and-comers who show using good judgment. Bloomberg took good judgment. It may be possible to Judgment Calls his well-honed leadership judgment repair the damage to a company or capability and applied it to the NYC career that results from misjudgments It’s make-or-break time. school system. His first call was to about strategy or crises, but it’s tough frame and name the issue, which was a to recover from poor people judgment. leadership problem that needed to be fixed. His TPOV included an assump- Three-Phase Process tion that performance depends on a Leaders who regularly show good good leader. He made a bold judgment judgment aren’t just having a series of call by recruiting Joel Klein, a non-edu- terrific (or lucky) “aha” moments. cator, to be school chancellor. Klein in Rather, they use a three phase process: by Noel Tichy and Warren Bennis turn brought in Bob Knowling to head 1. Preparing for calls. During prepa- the Principals’ Academy. Leadership ration, leaders sense and frame the HE JUDGMENT CALLS MADE BY LEADERS judgment in public schools is about issues that demand judgment calls, Tand managers about people, strat- shaping the capacity for good judgment and align their team members so that egy, and crisis situations are called in children. The stakes are high. Today, everyone sees why the call is impor- into question every day. Yet there are a higher percentage of NYC high school tant. Preparation incorporates three few ground rules for leaders to help students are graduating. Bloomberg, steps: 1) sense and identify the issue, them exercise better judgment. We’re Klein, and Knowling are leaders who which entails reading early signals; 2) trying to de-mystify the process and exercise exemplary judg- frame and name it, set- explore how and why having good ment. Others include A.G. ting clear parameters and judgment is the essence of leadership. Lafley, who turned around providing a context; and The single most important activity P&G in a crisis and Jim 3) mobilize and align key leaders do is making good judgment McNerney who transformed stakeholders, inviting calls in three domains: 1) people (who both 3M and Boeing. their input and harness- is on or off your team); 2) strategy; and Some leaders make better ing their energy. Wise 3) crisis situations. It’s important to judgment calls than others. leaders habitually sense, have Teachable Points of View (TPOVs) It’s not how many calls they frame, and align so that when making judgment calls. Great get right, or even the per- they are prepared for the leaders are also teachers, using TPOVs, centage of calls they get call, which can arise at and developing others to be leaders right, but how many of the any moment without and teachers. They prepare for crises important ones they get right. Good warning. This is vital in crisis situa- before knowing what will occur. They leaders not only make better calls, but tions; the likelihood of making a good build aligned and trusted teams and they discern the important ones and call is vastly increased if the call is have clear TPOVs and story lines. get more of them right. They’re better made in the context of a story line. When a crisis arrives, leaders respond at seeing the need for a call, framing Wise executives use story lines to immediately, engage the appropriate the issue, learning what’s critical, and guide their calls and inform their people with the needed knowledge, mobilizing and energizing the troops. actions. A story line describes a compa- and mobilize their teams for execution. Moreover, the best leaders have ny’s identity and direction and con- Selecting a CEO is the most critical character, meaning they have a moral tains three elements: 1) an idea about people judgment call. We see some compass for what they will and won’t how to make the organization success- bad judgment calls in CEO succession, do—they know right from wrong, ful; 2) an articulation and reinforce- usually because there are no good having worked those issues out long ment of the values; and 3) a strategy candidates or no leadership bench before facing tough judgment calls. for generating the energy needed to strength, and this dearth may be the Character also means putting the achieve goals. When the need for a result of family nepotism, lack of a greater good of the organization, or of judgment arises, leaders can match the disciplined succession planning, society, ahead of self-interest. possible consequences of a decision board neglect, ignorance of the chang- The best judgments calls are well- against the story line to get a clear pic- ing world, poor talent management, informed, wise decisions that produce ture of what to do. A story line helps loose requirements, and ego issues. desired outcomes. When leaders show you frame your choices and make key General Electric is a great case study consistently good judgment, little else judgments. It also allows you to look in judgment because GE is the world’s matters. When they show poor judg- for events that may be influenced most complex multi-business company ment, nothing else matters. Of course, by—or change—your story so that you and the top producer of leaders run- no leader makes the right call every can proactively make judgment calls. ning other companies (Boeing, Honey- time, but effective leaders make a high The redo loop comes when you dis- well, Intuit, Polaris, Chrysler, Pfizer, percentage of successful judgment cover that you can’t mobilize and align Home Depot and Amgen). GE also calls, when it counts the most. And for the organization—perhaps because invests in developing leaders through leaders, the import and impact of you have not framed the issue correct- its leadership center, has highly effec- those calls are magnified exponentially or compellingly. Rather than digging tive succession planning, and rewards ly, because they influence the lives and in their heels, good leaders set the con- the exercise of effective leadership. livelihoods of others and often deter- text before pushing on to the call. They Wise leadership judgment can trans- mine their career success and an orga- reconsider the parameters of the deci- form any organization. New York City nization’s success or failure. sion, re-label the problem, and redefine Mayor Michael Bloomberg and School People judgments involve getting the goal in a way people accept. Leadership Excellence 7 2. Making calls. The call, the LEADERSHIP LEGACY with communicating clearly while moment of the decision, is often as respecting the views of all. quick as the flip of a switch. Leaders 2. Developing leaders at all levels. usually consult with others, and then Leadership Legacies Leadership today is less about “you” make the decision. At one instant, lead- How will you be remembered? as a leader and more about the “cli- ers haven’t chosen a course of action, mate of leadership” you create. Such a and by the next, they are in the execu- climate is distinguished by a belief that tion phase. But this is exactly why by Jim Trinka everyone has leadership in them and a good preparation and execution are commitment to develop leaders at all vital. It’s before and after the call that levels. During his GE years, Jack Welch leaders can take a breath and garner EOPLE REMEMBER THEIR modeled this commitment by teaching support. There’s a redo loop between Pleaders: how they at GE’s Executive Development Center the end of the preparation phase and made them feel, posi- every two weeks for 16 years. David the start of the call phase, when you tive changes they shepherded, or capa- Novak, head of Yum! Brands, leads 10 may get another chance to mobilize bilities they developed. All leaders weeks of leadership workshops world- and align if you’ve failed to do so. leave imprints—and some imprints are wide to grow the business. Try spend- Most leaders struggle to take advan- healthier than others. Effective leaders ing 20 percent of your time on tage of this opportunity. Once you leave healthy, positive legacies. employee development activities. Look make a tough call, it can feel irrelevant We approach legacy through the for teachable moments every day. to go back and invite input. But that prism of leadership, and leadership 3. Thinking differently. When you redo loop can make all the difference. through the prism of learning. We became a manager, you likely asked, 3. Executing calls. This means mak- focus on meaningful outcomes, accel- What’s not working? What are our ing the call happen. Once a call is made, erate strengths (rather than labor on challenges and weaknesses? Even if a leader needs to mobilize resources, weaknesses), and consider strategies you used a SWOT analysis of people, information, and technology to for creating a leadership climate. strengths, weaknesses, opportunities, support it. At Yum Brands, which oper- Effective leaders never stop learning. and threats, you likely zeroed in on the ates Taco Bell, KFC, and Pizza Hut, They continue learning, adapting, and problems and weaknesses. Today, CEO David Novak made a judgment seeking impact as they meet new peo- leaders benefit from looking more at call to appeal to consumers’ desire for ple, opportunities, and dilemmas. what works and finding ways to do choice by combining restaurants in sin- While core values may remain stead- more or leverage that success. This is gle locations—two stores within a store. fast and their leadership about appreciating what’s The goal was to increase volume. competencies may mature, working well and helping Consumers loved the idea of choice, but great leaders seek opportu- people learn from those employees balked, because they prided nities to enhance their lead- successes. Organizations themselves on the power of their indi- ership impact and that focus on problems will vidual brands. So, the strategic judg- imprint—their legacy. find more problems; orga- ment initially failed, and Novak and his How do great leaders nizations that discover team had to pull back and adjust. His leave a positive legacy? The what they are best at will passion may have interfered with exe- key resides in the learning find more that is good. Use cution. He neglected the learn-and- process. Does your organi- the appreciative inquiry adjust part of the phase. He now takes zation require transforma- process to engage people time to learn about people’s interests tion and flexibility now, or around what works, culti- and concerns, adjust his strategy, align should you focus on developing others vate a climate of acknowledgement of the members of his leadership team, or embedding a new era of collabora- contributions, and build greater energy. and accelerate the deployment of the tion in the culture? Great leaders learn 4. Continuing to learn. Leaders are multi-branding strategy. To make the the solutions to these leadership learners. They seek new perspectives, call happen, leaders must learn and dilemmas day-to-day. investigating what makes others suc- adjust along the way. cessful and reflecting on how they are You can change course during exe- Four Key Actions leading. This goes beyond curiosity for cution if you are open to feedback and We see four crucial actions of lead- hobby topics or literature of interest. take advantage of “redo loops.” ership worthy of legacy reflection: This is about challenging themselves The best leaders get most of the 1. Modeling transparency. It’s hard and others to continue reflecting, learn- important calls right. Enthusiasm, to keep secrets in organizations teem- ing, and growing. An organization-wide good intentions, hard work and smarts ing with e-mail, Internet, unions, cus- commitment to learning is a worthy may help, but what people remember tomer groups, and the press—and it’s legacy. Is there an open climate of learn- is the outcome. A good outcome is the a bad idea anyway. People want to ing, dialogue about successes and fail- product of a well-considered process, know what’s happening at their work ures, and non-finger-pointing autopsies reflecting collective wisdom and a and why. It takes time to inform and of less-than-optimal outcomes? commitment to results. LE provide rationale. However, trust, As you practice these four actions, commitment, and better decision-mak- you proactively choose your path and Noel M.Tichy ([email protected]) is a professor of management and director of the Global Business Partnership at the ing occur when leaders are open. Why recognize your passion, capabilities, University of Michigan’s Ross School of Business. Warren G. is it so hard to model an open style of and intended impact. LE Bennis ([email protected]) is a distinguished professor at leadership? Most leaders don’t trust the University of Southern California’s Marshall School of Jim Trinka, PhD, is coauthor with Les Wallace, PhD, of A Business. They are coauthors of Judgment (Portfolio). their associates with full disclosure. Legacy of 21st Century Leadership. Email [email protected]. Also, few leaders can share openly and ACTION: Get the important calls right. manage the tense dialogue that goes ACTION: Engage in these four actions. 8 Leadership Excellence CHANGE INNOVATION there is a need for discipline. At every stage, you must ask whether the project is on target to deliver a compelling value proposition to your customer Innovation Myths and to your customer’s customers. Seek to be customer-inspired. Sometimes a successful project can itself become a destructive myth. That happened at 3M with Post-it Notes. The by Jim McNerney part of everyone’s job. It’s not solely legend around Post-It Notes incorpo- about technology; it’s about creating rates most of the five myths. Happily, value for the customer in different the leaders running 3M today have NVENTION IS NOT THE ways. If you define innovation as find- switched the emphasis from the indi- Isame as innovation. I ing a way to do a task better, so that the vidual to the team, made the team an see some myths about customer benefits, it becomes clear that all-inclusive concept, and moved to a innovation—misperceptions that can innovation is part of everyone’s job. disciplined focus on customer-inspired trap even the brightest minds. Myth 3: It has to change everything. innovation. R&D was realigned, and We love to invent things—and then Fact 3: Always sweat the small stuff. the distance shortened between innovate to make them better. That will Incremental doesn’t mean insignificant. research and marketplace. A height- never change. Invention and innova- Never-ending incremental improve- ened focus on the customer does not tion are the engines behind growth. ments are needed to sustain current inhibit the flow of ideas or creativity. To invent means to find or discover. business and open new opportunities. Just the opposite: Through a more dis- Invention involves major discovery— Myth 4: Innovation is a matter of ciplined, customer-based approach, those “eureka” moments or big, con- serendipity, accident, or luck—the 3M raised the bar and growth rate. ceptual breakthroughs. In the 100-year happy thought that comes to you Much of the innovation at Boeing is history of aviation, there have been when you least expect it. Fact 4: The customer-inspired. Gone is the day only a few major inventions—includ- “eureka” moment, while exciting, is when we put technology into a prod- ing the miracle of powered flight, the rare. As Thomas Edison said, “Genius uct just because we can. Gone is the invention of the jet engine, the pres- is 1 percent inspiration, 99 percent per- day of the independent inventor. Gone surized cabin, and supersonic flight. spiration.” Even in the lab, innovation is the day when most technical ideas But there have been millions of impor- and input come from inside the com- tant, noteworthy innovations. pany. Today we manage inputs global- To innovate means to renew. Inno- ly across boundaries and disciplines. vation is vital to business success. It’s The challenge is to manage informa- about taking what’s there and making tion better and get more information it better—as quickly as possible. It to more people in a more usable form. takes advantage of anything that will That requires exceptional teamwork delight or better satisfy a customer. —extending from supplier-partners to A few amazing individuals—like dealings with customers. That’s what Steve Jobs, Bill Gates, and Thomas you see with the Boeing 787 Dreamliner. Edison—have excelled as both inven- The 787 could not have happened if tors, innovators, and as leaders—peo- we didn’t start with the marketplace— ple with a gift for bringing out the best should not be left to happenstance. The including our customers and the peo- in others in service to the greater good. effectiveness and productivity of R&D ple who finance the airplanes. Our Over the years, in my various jobs, efforts should be measured and man- sales and finance people did a great I’ve thought about how people can aged to eliminate duplication of effort; job of communicating their under- best contribute creativity. That’s led me to maximize returns; and to ensure the standing of what their customers to the five great myths of innovation: company pursues the right products, wanted to our engineers and leaders. Myth 1: The iconoclastic, crusading with the right partners, and does all We could have built a bigger or researcher, working out of a “skunk other things it must do to maintain a faster airplane. Instead, we decided to works” or bootlegging operation, is customer-oriented perspective. use advances in technology to build an responsible for most innovation. Fact Myth 5: Discipline and creativity airplane that gives the airlines more of 1: Innovation is a team sport, not a can’t coexist; hence, managers have to the things that they want so that they solo sport. It depends on a culture of accept that the creative process is can give everyone who travels by air technical sharing and openness to oth- inherently mysterious and unmanage- more of the things that we want—low ers. It takes people working together able. Fact 5: In business, you can’t fares, direct flights to our destinations, across different groups, disciplines, have creativity without discipline and relief from the fatigue of being and organizational lines to make it because not all ideas are created equal. crammed into a small space for hours. happen. It also takes real leadership in You need the rigor and discipline both As we work to convert our huge charting the course and inspiring peo- to say no on some projects and to put backlog—$250 billion—into delivered ple to reach for the highest perfor- the pedal to the metal on others. Not product and growth, we’ll need the mance with a focus on integrity. saying no is as frustrating to people best inventors and innovators. LE Myth 2: It’s all about technology— doing the work as it is to people not Jim McNerney is CEO of Boeing. This article is adapted from the techies are the only innovators. getting the results. They want to be his speech at the College of Engineering University of Fact 2: Innovation can and should deployed onto something successful. Michigan. Visit www.boeing.com. occur in all areas. And it ought to be As a project moves through marketing an everyday reality as well as a fun and manufacturing and into the field, ACTION: Master the discipline of innovation. Leadership Excellence 9 LEADERSHIP BUZZ 10 times lower than the industry aver- age. One key is that leaders consistently seek the opinions of employees, beginning on day one when each per- The Buzz Factor son is told that as a new person “we want to hear your ideas.” At places Why some companies have soul. like the Ritz Carlton, Nordstrom and Southwest, employees are given wide latitude to make decisions. At Westjet, by John Izzo with a vision of greatness. At Umpqua the Southwest Airlines of Canada, Bank, it was the “world’s greatest employees are treated like owners and bank”; at the Ritz Carlton, it was the have great latitude to make decisions. OME ORGANIZATIONS world’s “greatest service.” The bigger If someone goes too far to help a cus- Shave a buzz about the dream, the more people are likely tomer, they get coached instead of them. Their employees to get “buzzed.” Take Centegra Health, scolded. When people have the power have a deep pride and passion for the a hospital in rural Illinois. When Mike to be involved, they get buzzed; and organization and a strong motivation Eesley became the CEO, they created a when they lose that power, the buzz to help the enterprise succeed. They vision to “be one of the most respected dies. Community is also about people often provide superior service, are community hospitals in America with feeling appreciated and known. There magnets for talent, have low turnover the service quality of the Ritz Carlton is a reason why studies show a strong rates, and are consistently profitable. and the clinical quality of the Mayo connection between leader’s knowing Almost 15 years ago, we coined the Clinic.” Mike and his team focused on what is happening in people’s lives idea of corporate soul—the idea that creating excellence and a culture where and having “best” friends at work and some workplaces have a palpable mediocrity was not tolerated. In three high engagement. Buzz comes when energy that translates into business years, the staff became deeply passion- leaders take the time to get to know success. We have all experienced such ate about Centegra, and they became people as individuals and when people workplaces, whether at well-known one of the most respected hospitals in become a kind of family to each other. brands such as Southwest Airlines America. Part of “buzz” is recognizing The old advice about “not getting too and the Ritz Carlton or lesser-known that people want to be part of a “win- close” to your employees is nonsense. buzz places scattered across many sec- A great predictor of buzz is whether tors. What creates a buzz workplace? people feel cared about, appreciated and feel like they have a say. Four Paths to Buzz or Soul 4. The Path of Contribution. Buzz Here are four paths to soul or buzz: workplaces are places where people 1. The Path of Self. At buzz work- see a higher purpose to their work. places, the spirit is contagious, and Leaders work hard to help people see leaders carry the virus. People the “higher purpose” of their work. At respond to the passion of leaders. All Westjet, leaders emphasize that low great teachers and leaders have pas- fares mean people can visit friends and sion or enthusiasm. Buzz begins with family who they could not visit if not leaders who are passionate about the for Westjet. At the Ritz, they emphasize enterprise. One buzz workplace is the guest who can have a memorable Umpqua Bank, one of the most experience because of how associates respected banks in America. When act. At Medtronic, there is an annual Ray Davis became the CEO, they had ning team” where greatness is expect- event where staff meet and hear from only a few branches, but he had a sim- ed. The more we expect of people, the patients whose lives their medical ple vision to “become the world’s more they rise to the occasion. This is devices have saved. The more an orga- greatest bank.” Ray’s personal enthu- true for leaders and companies. When I nization helps people make a genuine siasm ignited the passion of others, ask people to identify the “best leader” connection between their job and and his vision created buzz. In a buzz they ever had, 95 percent of the time, something noble, the more people will workplace and culture, each individ- they identify a “tough but fair” leader engage at a deep level. This means cel- ual is seen as critical to the success. who challenged them to greater heights. ebrating the difference we make not Rather than a culture where the CEO 3. The Path of Community. People just the dollars we earned. is hero and takes all the credit, the cul- want to be on a winning team but peo- ture emphasizes each person’s role. At ple also need have a deep sense of Profitable Buzz Synovus Bank (a Fortune 100 best belonging. Over time, I have discov- Buzz workplaces like the Ritz, South- company), they teach a simple princi- ered there are a few ways to create a west, Westjet, and Umpqua are often the ple: 100 percent responsibility. Each sense of community that leads to Buzz. most profitable businesses in their niche. person is responsible for the success of First, create a culture where people Corporate soul is critical in determining the Bank, and front-line people say, “I feel like owners. People feel like own- long-term success. You can create Buzz don’t want to mess up on my watch.” ers when they have the power to make by pursuing these four paths. LE 2. The Path of Craft. At buzz work- decisions, when their ideas are sought John Izzo, Ph.D., is speaker and author of Awakening places, excellence is fostered. People and respected, and where they are Corporate Soul and The Five Secrets You Must Discover Before love working in places with high treated like adults. At TD Industries in You Die. Visit www.theizzogroup.com or e-mail john@theiz- expectations and where they know Dallas (a frequent top 10 company to zogroup.com or call 604-913-0649. what is expected of them. This begins work) they have a turnover rate that is ACTION: Create a Buzz workplace. 10 Leadership Excellence CHANGE PEOPLE forces the new attitudes and behaviors COMPETENCY COLLABORATION necessary to sustain the change. The I3 Change Implementation model Only People consists of three phases that form a Collaborative continuous cycle: Change Phase 1. Inform to generate aware- Relations Apply a systems approach. ness. Through information and mes- Prepare for your turn at the top. saging activities or marketing communications, people receive simple and clear answers to the what, why, by Allan Cox by Lance Dublin how, who, and when questions. And, you begin to answer the “what’s in it RGANIZATIONS DO for me” question as well. The goal is to ODAY CEOS UNDER- Onot change. People ensure the messages you want to be Tstand the need for change: employees, heard are heard in ways they are recog- collaboration—supply- managers, colleagues, partners, sup- nized, recalled and remembered. ing the energy source for building trust pliers, customers—one at a time and Activities might include: newsletters, and candor between their top team and then many. Change is hard, and neces- presentations, emails, web casts, voice- the Board. To govern with distinction, sary. Without change, people become mails, documents, and speeches. Boards need exposure to the thinking stagnant and organizations die. Phase 2. Involve to generate involve- of the top team. To produce the right Applying the discipline of change ment. Just giving people answers to outcomes, the top team needs engage- management boosts your odds these questions is not enough. ment with a Board composed of wise of success. Change manage- You must also change their heads and big hearts. It’s up to the CEO ment combines processes, attitudes and behaviors. to convert concept to action and serve activities, and approaches that Behavior change seldom hap- as alchemist to produce this bonding. enable you to manage people pens based solely on someone Outside Boards, no matter how through the transition from passively receiving informa- accomplished, diverse and committed the old to new way of doing tion or tokens. The key to this to their duties of care and loyalty, con- things. Change management change is engaging everyone sist of part-timers. They come together is about communication and and paying attention to the four-to-six times a year, usually for one exchange, dialogue and ques- key influencers. You want to day’s onsite work, including Board tions, leadership and support. Its focus provide a first-hand experience of the committee responsibilities. Fortunately, is on attitudes and behaviors with the change to give them a chance to experi- many do their homework and come to objective of winning the battle for the ence it for themselves, to try it on, to meetings well prepared to engage in hearts and minds of people. Effective ask questions, and form their own discussion and make decisions. change management alone is insuffi- opinions. The goal is to have them Many have also served as CEOs. cient to ensure success. internalize and personalize the benefits They accept invitations to join Boards Another important discipline is of the change; to have it become theirs. for various reasons: to reap honor and consumer marketing. Its goal is to Activities might include: videos, depart- prestige, to gain insights that may ben- attract and retain customers, and, at ment meetings, lunchroom fairs, hall- efit them, to protect and represent the its best, it is an ongoing process that way expos, and traveling road-shows. interests of large investors in the com- builds mutually satisfying long-term Phase 3. Integrate to generate company, to support the CEO as friend relationships. Building a brand that mitment. The long-term success of the and advisor, to enjoy intellectual stim- represents the change and creating change depends on it becoming part of ulation and confront the challenge of strong relationships in support of it the culture, fully integrated into the the business proposition, and to are important for any successful con- work-life of employees, supervisors, receive compensation in the form of sumer marketing program. Again, managers and executives. Identify the fees for service and stock opportuni- although necessary, effective change ongoing processes and systems, and ties. Gone are the days of hiring based management and consumer market- any critical initiatives the change both on titles, awards, and the old boy’s ing are insufficient to ensure success. impacts and supports, to ensure the network. Board members take their The success of any change requires change becomes accepted as the norm, responsibilities seriously and give all people impacted to be informed and critical to the success of individuals ample, candid, trust-based feedback. aware, involved and engaged. It also and the ongoing health and survival of Gone also are the days when CEOs requires the integration of the change. the organization. Activities might ruled by absolute control. Control When done right, all stakeholders of include: integration with the perfor- blocks candor, good will and trust; the organization become fully com- mance management process, linkage breeds adversarial relationships; and mitted to its ongoing success. to a new key business initiative, and adversaries breed conflict. Collaboration Change implementation is an inclu- integration with business processes. resolves conflict, builds respectful sive process- and system-based Leading change takes hard work and bonds, and breeds peak performance. approach. It draws upon both change a systems-based approach to change In the new era of higher standards management and consumer market- implementation to ensure success. LE for candor and accountability, you ing concepts and practices. It applies can’t neglect performance evaluation. principles of both cognitive and Lance Dublin is Chief Solution Architect at Dublin Imagine how hard it is for board mem- Consulting. Call 415-759-1258 or email lance@dublinconsult- behavioral psychology. It not only ing.net or visit www.dublinconsulting.net. bers to evaluate the performance of the ensures individuals think and act dif- board and each of its members. But ferently, but also develops and rein- ACTION: Use this three-phase change model. Boards are improving in this area. Leadership Excellence 11 Eight Rules LEADERSHIP CORE personal growth. They have been buffeted Here are my eight rules of engage- and shaped by challenges. They are ment that can help open doors and doing amazing things, carrying awe- lead to fruitful board relations: Inside CEOs some responsibilities. I find that 10 1. Engage in activities that can help What makes them tick? archetypal experiences shape a core of you become a better collaborator on strong leadership: 1) Swimming in water your current job, which is always your over your head (high stakes personal risk main priority. This can be any activity by Stephen H. Baum with no preparation); 2) Making the tough that requires team effort, perhaps a choice (especially a moral choice or sacri- building project or team sport. fice of something valued); 3) Selling 2. Volunteer to serve on task forces S YOUR BOSS A “MASK?” something (especially yourself or an or suggest creating one that might IDoes he use intimida- intangible); 4) Building a team (finding, open a window of opportunity or shed tion, bluster, and pre- selecting, assembling, motivating, lead- light on a nettlesome issue, such as tension to drive the enterprise? Does ing); 5) Developing your crap detector (who effective diversity hiring or alterna- she shy away from prudent risk, or go is telling the truth, who has hidden tives for affordable housing. This inter- to the other extreme of ready, fire, aim? agenda); 6) Parenting at work (caring for disciplinary, cross-functional nature of Do you eagerly go the extra mile for your team members as if they were fam- a task force parallels board work. the boss? Has the boss left a trail of ily, including tough love as needed); 7) 3. Think of your boss and her peers damaged careers? Or is the boss a real Developing character that is first imprint- as your board, your peers and/or the leader, motivated by good purpose, ed in childhood but gets real when test- people who report to you as your has the appetite to lead and the confi- ed and strengthened (or bent) by team. Voila! You’ve created another sit- dence to embrace risk, decisive when challenges; 8) Learning from shaping expe- uation that parallels board work, needed and knows what to do and say riences in daily activities; 9) Recovering where you supply the energy source to engage and inspire people? and getting back up from a setback or failure for two key groups, just like a CEO. What is inside the CEO? And what and dealing competitively with tough 4. Find some local government com- shaped, grew, and tempered what is adversaries; and 10) Being lifelong mittee that needs new blood on its inside? Several CEOs have told me learners—always looking for an edge, a advisory board. Perhaps your boss or their stories. Their journeys began with way to perform better, asking two ques- head of external affairs could make deep-seated motivations, such as to tions each morning: what must get done some introductions. You might also escape poverty or control their destiny. today, and who else can I get to do it? consult www.boardsource.org. Although some were late So, how can you be the 5. Follow press and news accounts of bloomers, many recalled go-to person? Seize or cre- organizations whose boards show you testing their appetite to lead ate shaping experiences. how to do it and how not to do it by taking charge in school. Revisit your motivations (Motorola and Qualcomm on the posi- There were setbacks, recov- for taking charge. Are they tive side; HP and NYSE on the nega- ery, learning, and trial still relevant and powerful? tive—although HP CEO Mark Hurd again. They moved along a Inventory your shaping deserves high praise for the way he rose natural progression toward experiences. What is your above the fray). If you’re a minority or a a preference to be in charge. story? What has made you woman, follow the stories and careers of From their stories, five emotionally and mentally people who serve as role models. components of a strong eager and ready for greater 6. Observe your bosses’ interactions leadership core emerge: 1) challenges? What shaping with the board. Listen for their com- Character—acting with integrity and experiences are you missing? Don’t ments about their exposure or presen- good purpose for the enterprise and all dismiss opportunities because they tations to the board. You can learn by stakeholders; 2) Appetite to lead—want- don’t look good on your resume. Ask asking, discreetly and diplomatically, ing to take charge for the right reasons; how they would change you, what you “what’s it really like in there? I’d love 3) Confidence to embrace risks—manag- would master, whom you would meet. to be a fly on the wall.” ing their emotional intelligence, taking Seek shaping experiences and leader- 7. Volunteer your assistance to some self-doubt out of the assessment of risk, ship opportunities. Assemble your own executive by putting a report or presen- being resilient in setbacks; 4) Capacity to board of directors who hold you account- tation together for the board. Even if be decisive—high-speed critical thinking able for growth and open doors. you play a modest role in a routine aided by a good memory for analogies If you seek to grow bench strength, project, you’ll gain valuable exposure and key facts and trustworthy sources; apply the principles in sourcing and and learn a lot about the process. and 5) Ability to engage and inspire fol- recruiting to on-boarding, training, and 8. Know the names of your compa- lowers—deeds and words that engen- career paths of high potentials. Ask: ny’s directors and follow their careers. der belief in the vision, the leader, and What shaping experiences and abilities Most board members have held big opportunities for individuals. do they bring? How has training and jobs earlier and may well serve as A strong leadership core is built the mentoring grown them? What positions directors of other companies too. same way as a strong physical core: offer opportunities for their growth? Today, opportunities abound for effort and experience over time develop People stay longer where they are those wanting Board involvement. LE strength, flexibility, balance, and resilience. growing. Leaders are grown by what You have little idea at the outset what they’ve tried, even if they fail. LE Allan Cox, CEO of Allan Cox & Assoc., advisor to CEOs and you can do. What you experience is in author of seven books, including Your Inner CEO: Unleash the Stephen H. Baum is an advisor and coach to CEOs. Visit Executive Within (Career Press). Visit www.yourinnerceo.com. your muscle memory and mind. www.stephenhbaumleadership. Men and women who exhibit a Action: Prepare for your turn at the top. strong core have experienced exceptional ACTION: Strengthen your leadership core. 12 Leadership Excellence LEADERSHIP GROWTH The leaders must align individuals and groups who see the world differently. High-performing leaders emphasize Ready for Take-Off painting a broad vision over pursuing a detailed strategy; they champion both Leading growth strategies. intra- and inter-organizational collaboration. And they let go of the “control gap are enormous: missed opportuni- mind-set,” engaging more in acts of ties, declining shareholder value, erod- influencing or relationship-building. ing customer relationships, and Top performers focus more energy on disillusioned people. For those who the building blocks of relationships: bridge the gap, the rewards are vast. building trust, modeling integrity, and building networks based on trust. … the Tough Get Growing by Steven Barry, Louise Axon Mergers and acquisitions. Executives and Tom Atkinson A critical few behaviors or practices who lead M&As cite “retaining and drive growth. Several behaviors are engaging top talent from merged or unique in individual strategies; others acquired companies” as their top chal- ICTURE YOURSELF IN THE COCKPIT OF are common to all strategies. lenge. Top-performers practice certain Pa Boeing 747, preparing for takeoff, Common practices include: 1) estab- behaviors associated with retaining surrounded by levers, dials, dash- lishing a climate of ownership and 2) and engaging talent (“recognizing and boards, and flashing lights. You have an understanding customers and their bridging differences in styles, values, experienced co-pilot and crew, and a unmet needs. These practices differenti- processes, and cultures,” “taking time virtual team in the tower providing you ate top performers. So, growth leaders to listen to and coach others,” and guidance and flight orders. Before you can add value by fostering a climate “communicating a compelling vision”). is the runway, and a finite distance and based on key drivers of employee own- Top performers are also more likely to time in which you need to get the plane ership (rewards and recognition, con- adapt their strategy to the environment. off the ground. Many people depend nection, work/life balance, community, One SVP of HR observed that success- on you. You ask, “Am I ready for this?” and opportunity) and by keeping focus- ful acquisition leaders are “externally Many leaders feel this way when ed on customers’ met and unmet needs. focused, adaptable, relationship- asked to grow their business. Many builders, and decision-makers.” feel they have inadequate preparation to lead growth, according to a study When Research Meets Reality by The Forum Corp, looking at lead- Companies need to develop flexible ership imperatives that drive growth. leaders, adept at multiple growth strate- Growth is driven by certain prac- gies, to enhance their ability to grow. tices and principles—whether you are These leaders need to know their prefer- leading growth organically, through ences, predilections, weaknesses, and strategic alliances, or through acquisi- strengths with regard to leading in dif- tions. Each strategy calls for different ferent growth contexts. They may need approaches or levers. If you sit in the to think and behave in different ways. pilot’s seat, you need to know your Leaders add even more value when It’s difficult for leaders to shift unique strategy and capabilities to they understand the imperatives that between strategies. The behaviors and decide which levers to pull. drive growth in particular strategies. preferences leaders develop for one Organic growth involves initiatives strategy may produce blind spots when When the Growing Gets Tough … that focus on bringing innovation in the implementing a different strategy. One The top two priorities of sustained form of products and services, identify- strategy’s leadership imperatives may and steady top- and bottom-line ing opportunities for existing offerings even conflict with those of another. growth remain difficult to attain. Few in new markets, or generating addition- Take a moment to reflect: companies outperform their peers in al revenue from current customers and • Are you prepared? Do your personal both revenue and profit. The failure to existing offerings. It demands a superior abilities match those required for lead- achieve such growth rarely lies in the focus on the customer. Organic-growth ing your company’s growth strategy? creation or viability of the growth leaders are challenged to “cultivate a • Do the skill sets of your leaders strategy. Rather, growth strategies fail satisfied and loyal customer base” and match those required for leading your when employees do not or cannot exe- “respond to customer pressure for growth strategy? Do they conflict? cute the plan. That begs two questions: improved products and services” that • Have your targeted hi-pos to serve Do certain leadership behaviors drive address unmet customer needs. as leaders? Are they equipped to lead the execution of a growth strategy? Do Strategic alliances. In this area, we growth by implementing your current these behaviors differ by strategy? considered growth through partner- strategy and other future strategies? To learn more, we examined the ships, joint ventures, and equity and Leading growth is risky business. leadership practices that business lead- non-equity alliances. Creating a strategic Flying so fast and high, can you afford ers often use to execute a growth strat- alliance can be a fast, effective way to not to prepare for leading growth? LE egy. We learned that many executives innovate and enter new markets. How- aiming to drive growth underestimate ever, to capture the competitive advan- Steven Barry is a consultant in Thought Leadership; Louise Axon is VP of Thought Leadership; and Tom Atkinson is direc- the leadership challenges involved, or tage that makes alliances attractive, tor of research with The Forum Corp. Visit www.forum.com. they are unprepared to meet them. leaders must move quickly, creating The consequences of this leadership alignment and building relationships. ACTION: Lead your growth strategy. Leadership Excellence 13 PERFORMANCE CULTURE people to constantly experiment with new entities, structures, and staff. To encourage experiments, managers were annually given control over pock- Culture of Success ets of money (guidelines) that they could use to pursue new contracts and Build it, and they will come. invest in growth. The degree to which discretionary money and decision- making were delegated to managers by J. Robert Beyster improving SAIC products and services was unprecedented in the defense and to make decisions and solve prob- industry and rare for any business. lems to put their ideas into action at 6. Organize for growth. We bucked HEN I FOUNDED the lowest level possible, thus cutting the traditional hierarchy, creating a WScience Appli- red tape and providing customers decentralized model that was fast and cations Intl. Corp. with more responsive service. Our cus- flexible. Our central organization pro- (SAIC) in 1969 with a handful of scien- tomers appreciated our responsive- vided essential policy guidance to busi- tists and administrative staff, we had ness, sending more business our way. ness units and exercised oversight and no business plan or blueprint for suc- 3. Let freedom ring (with strings financial control, but otherwise kept cess. Instead, we took an approach very attached). One reason I founded SAIC out of the way. This approach allowed familiar to scientists and engineers—we was to have a good place to work. My our motivated managers to build their experimented. During our early years, dream was to be an open organization businesses free of restraints that would we tried several innovations, most of where people would be free to pursue have fettered their efforts, and enabled them homebrewed. While none of our work they were passionate about—to us to respond to customer needs and ideas taken in isolation was truly new, start, operate, control, and grow their market shifts in near real time. each helped build a culture of success business units and unleash their ener- 7. Put your people first. Few man- that resulted in an $8 billion company gy and creativity. This is exactly what agers really put their people first. To with 44,000 employees worldwide. happened. By allowing employees to me, the company existed to provide the I’m often asked: What was the secret pursue their passions, SAIC grew resources needed to serve people and, sauce? We tried many different innova- quickly. However, while we gave peo- if it wasn’t doing this task, then every tions. Some worked well; many didn’t. effort should be made to quickly cor- However, if something did not work, rect this situation. During my years at we quickly tried another approach. the helm, I found that this basic formu- la worked very well: Hire smart peo- Nine Keys ple, encourage their entrepreneurial Nine concepts contribute to build- spirit, let them focus on customers, and ing a culture of success: reward them for their contributions. 1. Share your equity. When I started 8. Make every employee a salesper- SAIC, I owned 100 percent of the com- son. I knew that we needed people pany. However, I saw the challenge of who could both do the work and sell convincing scientists and engineers to the work. I shared equity with those leave the security of their government who brought in new business. By and aerospace employers to join me. I ple a high degree of freedom, we also enlisting the people who did the work knew I’d have to do something dramat- expected them to be accountable for in the selling process, we detected ic to attract talented and highly motivat- their own performance, and for the emerging customer needs, developed ed people. That something was enab- performance of their business units. close relationships with customers, and ling employees to become owners of Their stock ownership awards were minimized marketing expenses. SAIC through stock purchase programs. dependent on that performance. 9. Seek constant feedback. We used The more equity I shared, the more tal- 4. Don’t overplan the future. I have different “lessons learned” processes to ented people we attracted, and the never been a fan of long-term, strategic gather feedback from employees faster we grew. We built a culture root- plans. These tend to constrain the involved in new initiatives or complex ed in the idea that those who contribute actions of leaders rather than enable programs. The result was our uncanny to the company should own it, and them. So, instead of taking time to cre- ability to bring important insights to ownership should be commensurate ate plans that directed initiatives years light and record and distribute them with contribution and performance. My into the future, we encouraged SAIC widely for others to learn from. We used ownership share soon dropped to 10 to grow organically, following the different formats and held frequent percent; and when I retired, it was less interests and instincts of our entrepre- meetings to obtain feedback and learn- than 2 percent. Today, 80 percent of the neurial program managers. While we ing lessons, and they became essential employees own company stock. had an annual planning and budget- components in our culture of success. 2. Encourage widespread participa- ing process to ensure efficient use of So, engage the hearts and minds of tion in decision-making. For years, a resources, I always considered flexibil- every employee in addressing the poster hung over my desk: None of us ity and initiative to be more important needs of customers and finding new is as smart as all of us. I had no illusion than slavish adherence to “the plan.” and better ways of doing business. LE that the answer to the problems we 5. Experiment constantly. SAIC J. Robert Beyster is founder of SAIC and author of The SAIC faced could only be found in the exec- remains a company of scientists and Solution (Wiley) with Peter Economy. Visit www.beyster.com. utive suite. I expected everyone in the engineers. Hence, one hallmark of the company to contribute their ideas to company was the willingness of our ACTION: Cultivate a culture of success. 14 Leadership Excellence PERFORMANCE GOALS from an opportunity. It is hard to focus on long-term LD when the company is facing either a short-term financial crisis or a “once in a lifetime” short-term prof- Achieving Goals it opportunity. Assume that unexpected Turn plans into outcomes. distractions and competing goals will occur. Expect the unexpected. By planning for distractions, you are less likely Marshall Goldsmith but coworkers ignore their new behav- to give up on the change when prob- ior. We all tend to see people in a man- lems or opportunities appear. ner consistent with our stereotype—and 5. Rewards: Why am I working so ODAY, SUSTAINING we look for behavior that proves us hard at becoming a more effective Tpeak performance correct. The long-term follow-up and leader? After all my effort, we still requires a commitment involvement of coworkers tends to be aren’t making any more money! People to developing leaders who develop highly correlated with positive change tend to become disappointed when other leaders—helping people set and in the perceived effectiveness of lead- achieving one goal doesn’t translate achieve meaningful goals for personal ers. This positive change in perception into achieving other goals. There’s a change. Often, however, goals are not does not occur overnight. Harried exec- positive, long-term connection be- set in a way that ensures the follow- utives assume that once they know tween a company’s investment in LD through needed to turn great plans what to do—and communicate this to and its long-term financial success, but into successful outcomes. others—their problems are solved. If no connection between investment in By understanding the dynamics of only it were that simple! In helping oth- LD and greater short-term profits. goal-setting and the challenges of goal ers set goals, help them to be realistic Increasing leadership effectiveness is achievement, you can better see why about the time required to produce a only one success factor. For example, a people often set great goals, then lose positive, long-term change company may have the the motivation to achieve them. And in behavior. Habits that take wrong strategy or sell the you can help them stick with the plan 30 years to develop won’t wrong product. If a com- and reach their desired targets. go away in a week. And as pany is going down the Why do goal-setters often give up in they change a behavior, oth- wrong road, increasing their quest? Why do most New Year’s ers may not recognize it for people management skills resolutions fizzle by February? People months. Ultimately, will only help it get there give up on goals for six reasons: changed behavior will lead faster. If managers think 1. Ownership: I wasn’t sure this idea to changed perceptions and that improving leadership for changing behavior would work in more effective relationships. skills will lead to short- the first place. I tried it, and it was a 3. Difficulty: This is hard- term profits, promotions, waste of time. A common mistake in er than I thought it would or recognition, they’ll like- leadership development (LD ) is the be. The optimism bias of goal-setters ly be disappointed and give up when roll-out of a program that promises, applies to difficulty. Not only do most these benefits don’t occur immediately. “This will make you better.” If you achievements take longer—they also If they see personal change as a hope to help your people develop as require more hard work! We want to process that will help them become leaders, you need to communicate a believe that once we understand a con- more effective over time—they’ll likely clear message—ultimately, only you cept, it will be easy to execute a plan pay the short-term price needed for can make you better. The more leaders and achieve results. If this were true, long-term gain. commit to coaching and behavioral everyone who knows they should eat 6. Maintenance: I did get better change because they believe in the a healthy diet and exercise regularly when I was being coached, but I have value of the process, the more likely would be in shape. Our challenge for let it slide since then. Once a goal-set- the process is to work. The more peo- getting in shape—and changing lead- ter has put in all the effort needed to ple feel that the change is imposed ership behavior—is not understanding, achieve a goal, the reality of the work upon them, the less likely the coaching it is doing! Long-term change in leader- required to maintain changed behavior is to work. In goal-setting, you need to ship effectiveness requires real effort. can be tough to face. This mind-set ensure that the change objectives come For example, it can be challenging for leads to the yo-yo effect. Leaders need from inside the person you are coach- busy leaders to have the discipline to to see that LD is a process—leaders ing—and are not just imposed. People listen patiently while others say things can never “arrive.” Leaders are always being coached need to know that they they do not want to hear. While lead- “getting there.” Leadership involves are ultimately responsible for their ers may understand the need to change relationships—when people change, behavior. Leaders need to communi- —and even desire to change—it is still relationships change—and maintain- cate the same clear message. hard to have the discipline to change. ing any positive relationship requires 2. Time: I had no idea this process Real change requires real work. ongoing effort over time. would take so long. We underestimate 4. Distractions: I’d like to work to- Knowing these six roadblocks to the time needed to reach targets. Every- ward my goal, but my company is facing goal achievement can help you to help thing seems to take longer than we a unique challenge right now. Goal-set- others set goals and achieve them. LE expect. When the time to achieve a ters tend to underestimate distractions goal starts exceeding our expectations, and competing goals. You might tell the Marshall Goldsmith helps successful leaders achieve positive, measurable change, and author of What Got You Here Won’t we’re tempted to give up on the goal. person, “I’m sure that some crisis will Get You There. Visit www.MarshallGoldsmithLibrary.com. Busy professionals can be impatient, emerge next year!” The distraction or especially when they make a change crisis may come from a problem, or ACTION: See that real change requires real effort. Leadership Excellence 15 COMPETENCY NEGOTIATION close the deal quickly. Similarly, a seller may be in no rush to sell, yet her agent devotes considerable energy to per- suading her that it is best to make a Conflicts of Interest sale before the market cools down. They affect judgment and breed ethical breeches. What can be done about this problem? The common remedy to the failure and strategies that achieve desired of agents to act professionally is for results in negotiation. They identify governments to mandate disclosure. opportunities where others see no The reasoning is that, if consumers room for discussion. They discover the understand that their advisers and truth, even when the other side wants agents have a conflict of interest, they to conceal it. They negotiate success- can take the steps necessary to protect fully from a position of weakness. themselves. Are such remedies effec- by Deepak Malhotra and Max Bazerman They defuse threats, ultimatums, lies, tive? Perhaps not. Consider that, in and other hardball tactics. They over- most states, real-estate agents for buy- HEN PEOPLE TALK ABOUT CONFLICTS come resistance and sell proposals ers and sellers are required to have Wof interest, they assume that pro- using proven influence tactics. They their customers sign a disclosure state- fessionals actually consider these negotiate ethically and create trusting ment clarifying that the agent will earn opposing forces (what’s good for relationships—along with great deals. a percentage of any sales transaction. them versus their professional obliga- They recognize when the best move is Most people sign the disclosure form tions). Take, for example, the old to walk away. They employ and never again consider lawyer joke, “It’s not whether you win talking points that work in the actual conflict of inter- or lose, it’s how long you play the the real world, even when est between buyer and game.” This implies that attorneys are the other side is hostile, agent. Instead, they truly primarily motivated to maximize their unethical, or more power- believe that their agent is billable hours. However, when ful. They have an action providing objective advice. lawyers are paid by the hour, they plan for their negotiations. Disclosure could increase may believe that their clients are best They know what to do and the problems that result served by a time-intensive process, why, and build a reputation from conflicts of interest. whereas lawyers whose clients pay as negotiation geniuses. When advisers are required them a percentage of a settlement may to tell clients that they have believe that their clients are best The Problem of Agents a vested stake in having served by a quick agreement. Conflicts of interest often become them believe that a commodity has a These beliefs are biased by circum- most problematic when agents are high value, this disclosure leads advis- stance. As Upton Sinclair stated, “It is involved—some other third party with ers to feel more comfortable exaggerat- difficult to get a man to understand a stake in the negotiation’s outcome. ing their estimates. And, clients often something when his salary depends Consider what happens when a real- believe their advisers are more trustwor- upon his not understanding it.” estate agent advises you, the buyer, to thy if they disclose. So, advisers would In buyer-seller negotiations, sellers raise your bid on a house even though be more honest, and clients more cau- often believe that they are selling a your current bid is consistent with an tious, if there had been no disclosure! higher-quality product than the buyer assessment of the property’s value. Is If disclosure won’t resolve this di- thinks he is buying. In fact, buyers the agent thinking only of her own lemma, solicit advice from people who often believe that the goods offered by commission? We would argue that she do not have a stake in the outcome and different sellers are indistinguishable, is simply motivated to see the world in who do not profit from manipulating while sellers view their products as a way that maximizes her own returns. your behavior or decisions. Or, from much better. Thus, when a salesper- The agent can quickly think of past outside sources, collect information that son says, “Sure, I benefit if you buy situations in which a buyer preferred serves as a reality check. And, ask your our product, but I believe it’s the best to overpay rather than risk losing a agent to justify her analysis. Discover product for you and your company,” house, or bitterly regretted not heed- her criteria or procedure. She may trust she may believe this. Yet the seller’s ing the agent’s advice to overpay. It her intuition, but you should not. conflict of interest (being honest vs. will be harder for her to recall times Most of us view conflicts of interest making the sale) can lead her to view when this was the wrong advice, even as a problem that must be remedied, the world through a biased lens and though this happened more frequently. since they contort people’s judgments, to believe that her product is the best When you plan to buy or sell a but we have trouble believing that they option for you—even when it’s not. house, your agent will tell you that she affect our own judgments. Yet none of When a seller claims his products is working in your best interest. But us is immune. You will likely behave are the best on the market, and a when we look at the situation objec- similarly when you have conflicting prospective buyer believes that the tively, it becomes clear that the agent’s motivations and interests. To avoid products are the same, the buyer is interests do not perfectly match those such unintended unethical behaviors, likely to assume that the seller’s state- of her principal (buyer or seller). The first recognize your own fallibility. LE ments indicate unethical behavior buyer who wishes to pay as little as when, in fact, the seller is falling prey possible and who is in no hurry to buy Deepak Malhotra and Max H. Bazerman are leaders in executive education at Harvard Business School and coauthors of to the trap that Sinclair predicted. may have to deal with a well-inten- Negotiation Genius (Bantam Dell). Visit www.harvard.edu. What sets negotiation geniuses tioned agent who is paid more when apart? They hone the mental habits the selling price is high and wants to ACTION: Beware conflicts of interest. 16 Leadership Excellence CHANGE CONVERSATION humor. Ask how the employee’s day is going, what they’re working on, where they went on their last vacation. Next, assess the situation by moving into Conversations inquiry: ask powerful, open-ended They’re catalysts for change. questions beginning with what, where, and how. When you understand the situation and can paraphrase it back, ask Informal Conversations by Susan J. Bethanis more pointed questions that reframe Informal conversations help create the situation and get your partner to and define culture, and affect morale. think of it in a new way. Close by ask- ONVERSATIONS PLAY Walk through your office and ask: Are ing what the next steps will be. Ca key role in defin- office doors open or shut? Do people Spend most of this conversation ing the health and stick their heads up and chat or keep to time in inquiry. You need to go slow to effectiveness of a workplace. They cre- themselves? Are people hanging out in go fast. If you jump too quickly to an ate and define culture, disperse know- the lounge areas and lunchrooms? Do answer or conclusion, you’ll miss the ledge, and help turn ideas into action. people gather before and linger after chance to hear and inspire your peo- Far from mere idle chatter, conversa- meetings, or scurry back to worksta- ple’s original ideas and solutions. tions are mini-actions that occur daily tions? Do people speak in hushed tones —moving you forward or backward. or do their voices carry? Do they stop Group Conversations When you use conversations as a talking when they see you coming, or You need to make time for new powerful medium for change, you invite you to join them? ideas to arise. First, call boost your influence and motivation The answers give you for a round-table-style and generate sustainable change. clues as to how welcome meeting. Instead of pre- You may have been promoted to open discussion is in your senting information in a your position by minimizing chit-chat culture, and whether the speech or presentation, to do more work that has predictable, discussions are positive and open with a call to action: measurable outcomes. But you can enthusiastic about your ask people for their par- achieve outcomes through conversa- goals, vision and mission, ticipation and state that tions; workplace chatter doesn’t have or if employees are disgrun- no idea will be dismissed. to be idle gossip. It can be put to work. tled. If you can’t sense what Next, pose a few direct, The stories people share in hallways is talked about, ask direct provocative questions are the living embodiment of the com- reports to keep an ear out. about the nature of your pany’s collective knowledge. People If much of the chatter is gossip or business, its goals, values, vision, and learn and create best through narrative, speculation about politics in the upper strategy. Ask people what they think of or the stories they hear and tell. Stories ranks, you need to make adjustments. the current mission and strategy, how allow people to absorb information After evaluating the conversation they think the company is doing in and project into the future. The ulti- culture, ask what changes need to meeting its goals, and what could be mate story that you want people to occur. How can you better support done better. Ask: “If we could do one share in conversation is your strategy: spontaneous, creative conversations? thing differently, what would that be?” “where we came from,” “where we are Look first to the physical design. Do and “What might we could try that is now,” and “where we are going.” you have open space for gathering? outside our current strategy?” Sharing big-picture stories gets How comfortable are your lounge Break into small stations and assign your people to think of ways of doing areas? How formal are your confer- a “host” person to direct conversation things and opens them up to new pos- ence rooms? Formal settings can inhib- and record comments. After 20 min- sibilities. Would you rather have peo- it spontaneous, playful discussions. So, utes, send group members to the next ple who respond like automatons to a have small tables and comfortable station, while the hosts stay and begin top-down, pre-defined strategy or seating for smaller groups to gather the next discussion, using the best smart, idea-generating people who around. Supplement white boards ideas of the last group to spark ideas. disperse key knowledge, enhancing a with white construction or drafting By encouraging your managers to living, adaptive strategy? What your paper and have pens, chalk and hold coaching-style conversations with people talk about—and how they go crayons available for spontaneous their people, you create a chain reaction about it—can create the future. writing and drawing. Add plants, of support for change. And by holding Besides reinforcing the company’s fresh cut flowers and bright colors. regular roundtable discussions, you can mission, values, short-and-long-term sustain those changes. Short term, you’ll goals, healthy, open, casual conversa- Changing Conversations increase your influence and popularity tions can spark new and unique ideas. Next, co-create with your people an and the motivation of your people. As Through dialogue and conversation, a intellectual and emotional culture that open discussion spreads, you’ll see cross-pollination of concepts occurs, welcomes frank, open, honest discus- greater retention and higher sales due to creating new knowledge. Today, new sion. We teach In-the-Moment coaching a more responsive strategy and a happi- hires are valued for their intelligence techniques to spark ideas in brief con- er, more productive place to work. LE and quick-thinking, and for their skills versations. First, establish rapport by Susan J. Bethanis is CEO of Mariposa Leadership and author in performing particular jobs. You matching body language and tone, of Leadership Chronicles of a Corporate Sage (Kaplan). Call want to tap into that collective intelli- establishing common ground, allowing 415-861-5900 or email [email protected] or visit gence as much as possible, rather than for sharing of personal experience, and www.mariposaleadership.com. compartmentalize it and shut it down. just being friendly, even using a bit of ACTION: Try in-the-moment coaching. Leadership Excellence 17 COMPETENCY EMOTIONS your behavior in meetings, since these are “cauldrons of emotion.” Do you set a positive tone right from the start? Or do you impose your own “pace” based A Leader’s Mood on how you feel at the moment? Aim It’s the performance switch. for a calm, relaxed mood, and a consistent, positive approach. 2. Look for good in others. One of by Bruna Martinuzzi adversely affect business. When man- the central objectives of a leader is to agers are in an upbeat, positive mood, make others aware of the greatness their moods spill over to their staff, that lies in them. Be known as some- N DISCUSSING THE positively affecting performance and one who is always on the lookout for Ieffect of a leader’s sales. We can all take an inspiration what is right with people. It engenders mood on team perfor- from organizations that create a posi- good will and is good for business. mance, one person remarked: “I can’t tive climate, which ensures a pleasant 3. Read the climate. Can you accu- see how I am expected to be in a good customer experience and repeat visits. rately sense the emotional atmosphere mood for four quarters in a row.” A leader’s bad mood is a source of of your unit or organization? Is it As a leader, you can’t afford to infection—an emotional contagion that upbeat, energized, down, or dejected? entertain this thought. The French spreads to units. We can learn from Do people seem apprehensive and cau- concept of Noblesse oblige means that leadership in the military. Imagine the tious in your presence? Does the climate wealth, power and prestige come with effect on troop morale and energy that change when you are away? certain social responsibilities—with an overwhelmed, anxious, worried, 4. Be pleasant and cooperative. privilege comes duty. It is a privilege irate, or uncertain leader would have. Cultivate a pleasant personality. Make to lead a team of people, but with it Indecision is contagious—it transmits this a priority. Be cooperative by shar- comes many responsibilities—and one itself to others and becomes debilitating ing ideas and shortcuts. Your mood is managing your moods. and habit-forming, as people take their affects productivity. About 25 percent of financial results cues from the leader’s state of mind. 5. Be emotionally attractive. Become (as measured by performance indica- You might excuse a bad an emotionally attractive, tors like revenue growth, return on mood or rant by saying: resonant leader by manag- sales, efficiency and profitability) are “She can’t control her tem- ing your emotions and determined by the climate or culture. per, but she is so brilliant.” those of others. When you Leaders set the climate: their actions Or, “He has an amazing create a positive emotional and behaviors affect how employees mind, but shouts at people tone with mindfulness, perceive the climate. Leaders create the when stressed.” Brilliance is hope, and compassion, you climate that determines people’s moods no excuse for bad behavior. engage and inspire people. —and their mood, in turn, affects their It sends a message of incon- 6. Manage the emotions productivity and engagement. sistency—an undesirable of change. How you man- trait. age emotions either helps Afterglow or Aftermath? I’m not advocating that or hinders the change Have you ever driven home with leaders turn into shrink- process. If the resistance to an internal glow, reliving a positive wrapped models with false smiles and change is emotional, it is hard to over- encounter with an upbeat and sup- fake cheerfulness. People spot a non- come. As the leader handling a change portive boss, perhaps savoring a com- genuine smile anyway and notice initiative, don’t avoid the emotions pliment that made you feel so great when a leader infantilizes them. that accompany the change. Set the that you were eager to get back to the There are no easy answers to man- mood and manage the emotions—or office to give that boss the best that aging emotions in difficult circum- they’ll manage you. you have to offer? That’s the afterglow stances. However, a leader’s mood has If you cringe at the notion of emo- that lingers and gives you renewed the greatest impact on performance tion, empathy, compassion, intuition, energy to be more productive, to bring when it is upbeat—and in tune or in or emotional intelligence, you need to your finest talents to work. resonance with those around him. Good reconsider this mindset. Hone your Now, think about the reverse of the moods tend to galvanize good perfor- intuitive ability, and listen to hunches afterglow—the aftermath or bitter after- mance, but it doesn’t make sense for a that hint something in your behavior taste. This emotional wake is what leader to be upbeat when sales are and actions on bad days is damaging lingers with you after receiving acrid down. Your moods and behaviors others. As the leader, you have the remarks from a leader in a negative should match the situation—with a switch that controls the intensity of mood. How does that affect your deter- healthy dose of optimism. Respect how engagement of the people who do the mination to overcome difficulties in a other people feel—even if it is glum— work. A leader’s upbeat mood oxy- project, keep your heart engaged in the and model what it looks like to move genates the blood of followers—it’s process, and give your best game? forward with hope and humor. like a transfusion into corporate arter- The more upbeat, energetic, and en- ies. It’s one of the most potent contri- thusiastic the executive team, the more Six Steps to Better Performance butions you can make as a leader. LE co-operatively they work together, and Your moods and behaviors affect Bruna Martinuzzi is the President of Clarion Enterprises, spe- the better the business results. performance. You can cultivate emo- cializing in emotional intelligence and leadership training. Visit Nowhere is a leader’s mood more tionally intelligent leadership behav- www.increaseyoureq.com. crucial than in the service industry iors by following six suggestions: where employees in a bad mood 1. Model meeting behavior. Examine ACTION: Takes the six steps to better performance. 18 Leadership Excellence LEADERSHIP VISION through into new realms of possibility. PEOPLE DEVELOPMENT Creating a new vision is a courageous act, as the fear of failure is often an New Vision, insurmountable obstacle. People who War for Leaders realize their dreams are not without Are you winning or losing? fears, but they move forward in the New Year face of fear. Obstacles lie in their path, Create a prosperous future. too, but they understand that sur- by Alan Todd mounting these obstacles is a part of the game and, part of the reward. Here are three questions to get you S RULES FOR SUCCESS by David McNally started in clarifying your vision. What Aare transformed by do I wish to accomplish professionally competition, the best URING THE LAST WEEK in next year? What do I wish to accom- practices in leadership development Dof December, I plish personally next year? How do I (LD) are becoming antiquated. To reflect on all that hap- wish to feel, think, and act next year? maintain competitive strength, you pened during the year and envision When asked, If you had your life to must leverage knowledge through what I would like to happen in the live over again, what would you do differ- strategic LD. Failure to respond to this months to come. I forgive myself for ently?, most people say, “I’d think need will cripple your ability to resolutions not kept and acknowledge about whether the choices and deci- attract, retain, and develop top talent. what was accomplished. I express sions I’m making in life are leading me The models for selecting, develop- gratitude for my blessings and show to where I want to go.” ing, and retaining leaders need to be appreciation to those whose contribu- Being busy is an insufficient excuse updated, since “thinking-intensive” tion to my life makes it worth living. for failing to give careful thought to organizations are more competitive Professionally, I reflect on this com- the business of life. Clear mission, and profitable. You will boost your pelling insight: People are vision and guiding phi- revenue by effectively mobilizing never more engaged, losophy and principles knowledge, skills, and relationships to involved, and active than are the foundation of per- deliver superior service to customers. when they are totally com- formance. Being clear mitted to achieving what about where you are Real Leadership Challenges they believe is meaningful going and what you are In our Leadership 2012 study, we and desirable. The reason? about dramatically focused on trends and best practices for When we move purpose- enhances your level of developing leadership talent. Current fully, persistently toward personal fulfillment. models for developing leaders are not what we wish to accom- What you are and delivering the talent to execute strate- plish—we are immersed in where you are is the result gies. Of the organizations surveyed: the process of creation. of how you think and • 97 percent are concerned about cur- You and I are born to behave. You will be what rent leadership bench strength or their create—to bring into being something you will be, and go where you go, ability to develop the leadership talent that has never existed before. Between because of your willingness to adapt, required to support growth objectives. the ages of one and five, children change, learn, and grow. Those who • 81 percent have concerns about the experience much joy and happiness thrive, not just survive, have a purpose leadership bench strength and their because they are continually creating, to inspire them and a vision to moti- ability to support growth initiatives. learning, growing and achieving. vate them—a potent combination. • 69 percent are challenged to devel- Their curiosity is unparalleled. They Competition in global economy is op the leadership talent required to are unrestricted in terms of possibili- forcing us out of traditional, restrictive compete in emerging markets. ties. Their visions are unlimited. roles and limited definitions of who • 91 percent are challenged to identi- So, with 2008 just ahead, I invite we are and what we can be. There is fy high potentials early in their careers. you to put on the unfettered imagina- nowhere to hide. We are being pushed • While organizations say that devel- tion of a child, shake off the limita- to grow, mature, and soar. oping talent is a key competency for tions that the past year imposed upon Job security, advancement, and their leaders, this topic receives the you and courageously admit to what rewards are now tied to the contribu- fourth lowest attention in LD programs. you want for your life and work this tion each person makes to the growth • 68 percent said their firm’s commit- year. Establish a vision worthy of your and prosperity of their organization. ment to LD is either weak or not potential. Determine that it is time to Maximizing contribution can only backed up by financial investment. be bold. Your new vision will be your be done by fully utilizing our gifts, tal- More leaders recognize the need to declaration that you are in charge of ents, skills, and abilities. Motivation, coach and mentor employees, but their your life and not a victim of your must be followed by focused, goal-ori- actions do not match the rhetoric. daily circumstances. Affirm that you ented actions. We need to think and Leaders often do not release people for are taking responsibility for your life. behave in ways that result in us be- stretch assignments or give them time With a vision, you look to the coming thrivers, not just survivors. LE to complete their development plans. future with positive anticipation, not For example, only 32 percent say David McNally is a speaker and author of Even Eagles Need a anxious apprehension. As you declare, Push and The Eagle’s Secret and co-author of Be Your Own Brand. their leaders-as-teachers programs are “This is how I want my life to be,” Visit www.davidmcnally.com, email [email protected], highly effective. Cultural nuances can you are freeing yourself from the self- or call 1.800.228.1218 or 952.835.0300. make a program effective in one orga- doubt that stops you from breaking ACTION: Reflect on your vision or purpose. nization, and a wasted effort in another. Leadership Excellence 19 The challenge to attract, grow, and PEOPLE ALIGNMENT To ensure accountability, set goals; retain good leaders will only become clarify expectations; define roles and more difficult as the shortage in lead- responsibilities; ensure sufficient skills, ership talent becomes a reality. The FACT Model knowledge, and resources; monitor HR, learning, and talent manage- An alignment tool for leaders. progress; measure results; improve ment professionals are concerned that: processes; and reaffirm goals. they are not building a strong core of Communication drives the content, great leaders; programs and processes clarity, delivery, and timeliness of key for developing leaders need improve- information. Clear and consistent comments; and without change, shortages munication—from the broad messages of leaders and other key talent may pre- delivered by upper management to the vent them from achieving their goals. regular, routine interactions among employees—is vital to health and pro- A Time for Change by Lois J. Zachary and Lory A. Fischler ductivity. It builds confidence in lead- As pressure mounts to attract and ership and promotes alignment. retain top talent, LD processes must be UR EXPERIENCE REVEALS A CONSISTENT Regular, meaningful, and consistent managed as an integrated set of activi- Opattern that differentiates effective communication reinforces the message ties. The “integrated supply chain” is a leaders who are adept at aligning peo- to employees that their leaders care. better model, as it streamlines the flow ple, process, and action. These leaders Effective communication requires a of information among the owners of rely on four FACT practices. commitment to authenticity and honest the process steps and improves the Feedback. Agile leaders master the art feedback. Authenticity builds trust and efficiency for moving leadership talent of asking for, giving, receiving, accept- reliability that contributes to productiv- through its development evolution. ing, and applying feedback to enhance ity, since messages are clear. Effective Few companies offer transparency performance. Employees are hungry for communication is the art of exploring into leadership talent pools. In most feedback about their performance and ideas and options, not debating and cases, stand-alone systems monitor contribution. Feedback fosters owner- arguing, and identifying common performance results, 360-degree assess- ship, nurtures commitment, and creates ground rather than differences. Ideas ments, work experiences, special skills value. When leaders balance construc- are developed and minds are opened. and knowledge, formal training, task tive and positive feedback, they acceler- All parties speak respectfully to each force assignments, engagement study ate performance and minimize negative other without personal attacks, power results, development activities, and outcomes. Regular, proactive games, and intimidation. other variables that contribute to an in- feedback reveals options for To communicate effectively, depth profile of future leaders. improvement, creates self- listen actively, clarify One key to developing leaders has accountability, and enables assumptions, be authentic, little to do with formal training, more to poor performers to honestly explore shared meaning, do with challenging work experiences. reflect on their contribution and speak respectfully. Yet developmental tasks or positions and commit to an action Trust. Trust enables peo- are often assigned in an ad hoc manner plan for improvement. To ple to build and sustain rela- based on what experiences managers engage in constructive feed- tionships. With trust comes think potential leaders need. There is back, identify the issue; ask openness, introspection, can- little or no science behind how stretch the other party for their dor, and vulnerability with and rotational assignments are used to point of view first; offer your others. Trust implies an round out a leader’s development. observations and facts without judgment assumption of good intention; hence, To develop global leaders, try this: or assumptions; check for agreement; constructive feedback is received more • Create the structures, systems, and ask what they will do to correct the positively. With trust, a team can move measurements to make fact-based problem; offer suggestions; agree on an rapidly; they are more open to risk tak- decisions, and identify new metrics action plan; and end on a positive note. ing and more creative. They challenge that can predict talent needs and esti- Accountability leverages feedback by each other’s thinking in a spirit of under- mate the value of talent. driving learning, performance, and standing and acceptance. Trust must be • Include spouses or partners in the behavior. Everyone needs to be held to earned by sharing information. Infor- LD programs to strengthen their com- same clearly articulated high standards. mation enables people to focus, think a mitment to a future leader’s success. Recruitment and retention of top per- situation through, solve problems ratio- • Leverage “soft skills” to create lead- formers is the ultimate payoff. People nally, and make better decisions. To build ers who are committed to, and work who excel tend to resent working with trust, start with small commitments; toward, clearly defined company goals. others who aren’t held to the same stan- make promises you can keep; do what • Recognize that culture, personal dard. Accountability requires affirmative you say you will do; keep players in the ownership and job satisfaction are crit- answers to these questions: Are goals set, loop; address problems as they arise; and ical factors in developing and retaining communicated, and measured? Do peo- don’t defend or blame. innovative and competitive workers. ple have the resources, tools, and ability As you apply these four principles, Implement these ideas to develop a to achieve the goals? Are measurements your efforts will be more aligned, and strong leadership bench. LE performed and communicated so that people more committed and engaged. LE teams can adjust? What are the conse- Alan Todd is Chairman of the Board for Corporate University Lois J. Zachary is president of Leadership Development Xchange, a global learning and leadership research and con- quences for low performers who don’t Services and author of The Mentor’s Guide and Creating a sulting firm. Visit www.corpu.com/leadership. step up? What happens to popular Mentoring Culture. Lory A. Fischler is senior associate and co- employees who don’t do the job? Is author of Creating and Sustaining Collaborative Partnerships. Action: Develop a strong leadership bench. excellence recognized and rewarded? ACTION: Use the FACT alignment model. 20 Leadership Excellence or more than 20 years, our three monthly Invest $8-$10 a month in Leadership F magazines have been the best source for the best and brightest insights from all the top con- Development, Sales and Service sultants, coaches, authors, and top executives. Subscribe to Leadership Excellence, Sales and Service Excellence, and/or Personal Ex- Excellence, and Personal Growth! cellence—all part of the Excellence Performance System—and gain exponential return on your investment. Team Leadership Leadership Excellence ($10/month). print or audio CD Use all of our FREE Development Tools: Leadership Excellence ■ 1-year (12 issues) $129 brings together the best ■ 2-year (24 issues) $199 • Personal Excellence Plan, an easy-to-use thinking in the world ■ 3-year (36 issues) $269 guide designed to help you create and imple- on all the issues that print + audio CD combo ment a vision and mission, goals, and priorities. leaders encounter, and ■ 1-year (12 issues) $199 • Excellence in Action Cards to help you put offers it all in the most ■ 2-year (24 issues) $299 into action those ideas that will bring about time-effective format. ■ 3-year (36 issues) $399 desired change. Recent contributors include: Rudy Giuliani, Jim Collins, Tom Peters, Anne Mulcahy, • Excellence Worksheet, the perfect way to Warren Bennis, Michael Porter, Noel Tichy, Frances Hesselbein, and many others! bring Excellence into a meeting or team.

Sales/Service Leadership Sales and Service 20-Year Instant ($5/month). Available in Excellence (electronic) Consultant CD archive: com- electronic format only. ■ 1-year (12 issues) $59 Sales and Service Excellence prehensive, ■ 2-year (24 issues) $99 searchable data- covers seven dimensions of ■ sales, marketing, and service. 3-year (36 issues) $139 base of the best ideas and strategies Recent contributors include: Jake Steinfeld, Margaret J. King, Dianna Boohrer, Oren Harari, Pam Bilbrey, Dave Anderson, Jim Taylor, Peter W. Shutz, and many others! on management, leadership, and produc- “Sales and Service Excellence is crisp, succinct, and actionable—a nice change from tivity. Instantly access the perfect article Harvard Business Review, whose articles are interesting but too academic to be useful.” —PETER G. BALBUS, CEO & MANAGING DIRECTOR OF PRAGMAXIS for your presentation, meeting, or personal study. with over 3,200 articles by best-selling authors, leadership experts, coaches, and consultants, it’s the largest Self-Leadership Personal Excellence searchable database of management and ($8/month). Personal ■ 1-year (12 issues) $99 leadership articles in the world. Excellence focuses on ■ 2-year (24 issues) $169 ■ seven dimensions $199 ■ 3-year (36 issues) $229 of personal development and leadership. Please start my subscription! Recent contributors include: Laura Schlessinger, Jim Morris, Tony Alessandra, Tom DeCotiis, Kurt DuNard, Joe Klock, Sr., Marshall Goldsmith, Ruben Gonzalez, Wayne Dyer, Diane L. Please sign me up for the item(s) I checked. Dixon, Peter Block, Dan Higginson, and many others! Name ______“Personal Excellence is the only reading you’ll need to do for continual self-improvement both personally and professionally!” Company______—SHARLENE HAWKES, FORMER MISS AMERICA, AWARD-WINNING ESPN BROADCASTER Address ______Master of Excellence Leadership Package ______• 1-year Leadership Excellence (Print or Audio) ______• Your choice of 1-year Sales and Phone ______Service Excellence or Personal Excellence Email ______• 20-year Instant Consultant leadership library CD ■ Visa ■ MC ■ Amex ■ Disc ■ Bill me • 3-book package on leadership* ■ $329 (save over $150)** # ______exp. _____ ■ $399 Receive all three publications** Signature ______

LEADERSHIP Get Started Call Nancy Low at 1-877-250-1983 ext 158, or email [email protected]. Today! PERFORMANCE SYSTEM

*Books may be different than shown. ** For Canadian and International subscriptions, add $40 U.S. postage per year—all three publications include Leadership Excellence, Sales and Service Excellence, and Personal Excellence.