1January 2013

Leadership Leverage Connecting the Dots

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January 2013

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Executive Letter . . . . . . . . . . . . . . . . . . . . . . 5

Member Profile . . . . . . . . . . . . . . . . . . . . . . 6May Speck, SPHRSenior Vice President of Human Resources,WageWorks, Inc . and Incoming NCHRA Board PresidentMember Since 2008

Continuing Education Calendar . . . . . . . . . . . 8

Hunting the High-Impact Leader . . . . . . . . . 10By Gautum Mukunda

Self- Awareness: Attribute of a Great Leader . . . . . . . . . . . . . 14By Hal Adler

The Leadership Role Only HR Can Play . . . . . . . . . . . . . . . . . . . . 17By Rogene Baxter and Chris Bennett

New Member Welcome . . . . . . . . . . . . . . . 20

Buyer’s Guide . . . . . . . . . . . . . . . . . . . . . . 22

Index to Advertisers . . . . . . . . . . . . . . . . . . 23

Scan to visit:http://www.nchra.org

2012 Board of Directors

Saul Macias, PHR Board President -Executive CommitteeVP of Professional Services Shared HR

LaTonya Olivier, SPHR-CA, M.Ed., CCP, GRP

Past Board President — Executive CommitteeCEO & Principal ConsultantBLC Partners

May Speck, SPHRPresident Elect—Executive CommitteeSenior Vice President of Human ResourcesWageworks, Inc.

Cynthia Nelson Holmsky, MA, SPHRExecutive CommitteeVP, Human Resource & Organization DevelopmentPacific Metrics

Ranu GuptaBoard of DirectorsPrincipalRight Talent Solutions

Birgit Hueglin-Wood, MS, SPHRBoard of DirectorsSenior Consultant CompAnalysis

Christine M. PallattoBoard of DirectorsDirector of Human Resources and Organizational DevelopmentGlobal Fund for Women

Delpha Snow, SPHRBoard of DirectorsHR Director, North and East Bay Field OperationsComcast

Walter StellaBoard of DirectorsShareholderMiller Law Group

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Published for:Northern California Human Resources Association425 California Street, Suite 500San Francisco, CA 94104-2190Tel: (415) 291-1992Fax: (415) 291-0217www.nchra.org

5January 2013

executive letter

The truly great and worthwhile concepts of humanity’s existence share a core commonality—they present themselves as enigmas. Justice. Beauty. Liberty. Knowledge. Truth. Love. Each deeply meaningful and comprised of multiple meanings. Each explored, studied, pondered, and pontificated about through the ages by our greatest minds; be they scholars, artists, philosophers, or the pillars of religious faith. Speeches given, brushstrokes applied, tomes written, verses spun. And yet they still remain worthy of our efforts. In some ways they refuse to be defined. Each having deeply significant meaning, and each meaning a personal one, crafted by our individual mores.

Leadership represents such an elusive concept at the personal, organizational, and societal level. Google the word and 119,000,000 results are returned in 0.17 seconds. Amazon carries 104,132 titles. Virtually every business book concerns itself with leadership in some way—what it is, how to discover it, how to practice it. And like all great concepts, the answers to those questions are myriad.

In many ways, the quest of human resources embodies the quest for leadership. Human resources is about impact. Execution. Accomplishment. Results. Collaboration. None achieved without leadership. Perhaps not of the titular or positional kinds, rather an application of understanding the inputs and desired outputs then selecting talent and crafting systems to accomplish goals. That requires leadership, whether we can share a common definition or not.

Leadership’s foundations have been said to rely upon trust (Covey) or authentic self (George). A colleague at Cal State

East Bay, Dr. Dan Martin, shared a few weeks back that it was compassion. The experts in the pages that follow have offered other views, including Hal Adler’s five attributes of leadership: self-awareness, bravery, kindness, innovation and inspiration.

My own definition relies heavily upon the ability to influence, which is based upon self-awareness, inspiration, and trust; a genuine respect for other human beings; and a willingness to serve a greater good that transcends, but does not necessarily negate, personal accomplishment. But then, I’ve never been much good at breaking concepts into small enough parts for real understanding—believing most everything is the result of multiple inputs and dynamics that cannot be separated.

Your own path toward understanding likely travels a different route than mine or the authors on the pages that follow. The important thing in the crafting of ourselves and our careers, then, is the quest.

Glory and reward lie in the pursuit of the questions, rather than in the answers themselves. HR

Wishing you success on the journey,

Danika Davis, PHRChief Executive Officer, NCHRA(415) 395-1911

6

member profile

How has HR changed over the course of your career, and where is it going?HR has changed significantly and continues to transform from personnel and transactional, to leaders serving as credible activists and organization architects. The competencies needed from internal HR professionals will not, as Dave Ulrich says, “propel us into the future.” We need to do more than just focus on talent; and instead we need to become organization architects—integrating organizational processes and systems with people to drive results. In addition, as credible activists, we will bring fresh ideas and continually innovate on the processes.

Successful HR professionals will get to know the businesses they serve, not just what a balance sheet is, but truly understand the business. Thus moving the focus from an internal viewpoint on being the employer of choice, to an external focus and being the company our customers choose. In other words, when making decisions, HR needs to filter through the customer’s eyes.

Of course it’s hard to predict the future, but if HR succeeds in making these critical shifts, I believe there will continue to be an important place for HR.

You’ve been very successful. What three skills should an HR person who aspires to be a senior VP have?

1. A passion and drive around what you do. For me, this is to be an influencer and activist working with business leaders to solve key people problems. By defining the guiding principles in your organization, you and your team can assess whether the solutions you are driving align to the organizational values and achieve the needed business results.

2. A strong desire for continuous learning and the ability to soak up knowledge at a rapid pace. I was fortunate

May Speck, SPHRSenior Vice President of Human Resources, WageWorks, Inc. and Incoming NCHRA Board PresidentMember Since 2008

to gain many mentors throughout my career who took an interest because of my dedication, inquisitiveness, and quick execution upon learning new things. Throughout your career, it is critical to stay relevant. No matter what level you are in the organization, you have to keep learning. The more you know, the more you realize what you don’t know. And what can be more exciting than to continue to learn and innovate?

3. Commitment, accountability, and a strong work ethic. While I love the theory and intellectualism, it is important to have an incredibly strong work ethic, day-in and day-out, to get action and results. I believe wholeheartedly that if I commit to something, I always follow through, regardless if it’s an e-mail I commit to send out by end of day, or a large complex project. Consistent personal accountability is important to build trust and integrity.

As I re-read my response, I realize I did not actually respond so much to what the question asked, which was what skills one needs, but rather I shared some important innate qualities. There has been so much great research done and shared around HR skills that I would turn to the best in this area of research, like Dave Ulrich and other researchers who outline six key competencies, Strategic Positioner, Credible Activist, Capability Builder, Change Champion, HR Innovator & Integrator, and Technology Proponent.

What has been your greatest professional accomplishment?I would say right now, my leadership position at WageWorks. It has been a great honor to be able to serve the customers, the stakeholders, and the employees to ensure that WageWorks builds and sustains a world-class, talent-based, service organization. I have a fantastic team, and together we can be proud of this year completing a successful initial public offering and then a secondary public offering. Much of this accomplishment to become a public company is due to everything the employees of

7January 2013

WageWorks have done to build, re-build, innovate, and sustain the company, all the while keeping a sharp focus on our customer’s and stakeholder’s needs.

What are the most important ways HR impacts an organization?In order for HR to have a significant impact on the business, we must determine what it takes to get the needed results and position the business for the future based on specific organizational needs. Beyond just knowing the business, it is knowing the strategy, the external influencers, understanding all the ways in which people interact, and the design elements that are driving the results.

Using an organizational systems design model, innovative ideas, and Service Level Agreements (SLAs), HR can work with key business leaders, stakeholders, and employees to solve core business problems. At the root of all business challenges lie organizational and people/talent issues—providing HR the unique opportunity to truly impact the organization. While we always need to tailor a plan to specific organization needs, some general areas of impact are:

• Know and build the workforce needed for the future

• Create and build new ways for people interaction

• Build leadership capability

• Initiate and sustain change

• Leverage technology

What do you see as the future direction of the NCHRA?When I joined the Board we worked hard to clarify our mission and vision. I am very proud of our mission, “To educate, connect, and lead the HR profession to achieve individual and organizational excellence” and our vision “To be the pioneering organization relied upon to lead the evolution of exceptional HR.” We have a very proud and strong purpose, and we are consistently focused on our 3,000 plus members and their needs as we continually evolve as a profession.

Three areas we will increasingly focus on in the coming year are: organizational architecture (driving HR skills and competencies), technology (streamlining operations and sharing knowledge faster), and social networking (building communities of practice).

NCHRA will continue on the course of our worthy mission and vision, while listening to our constituents, providing innovative learning opportunities, and building a strong HR community of practice. HR

May Speck is part of the leadership team responsible for executing WageWorks' strategic growth plan. In this role

May leads initiatives to ensure that WageWorks, Inc. builds and sustains a world-class, talent-based, service organiza-

tion. May is a proven leader with a solid track record of human resources leadership in driving change manage-

ment through value-added enabling processes within HR and across the organization. Before joining WageWorks,

May was the Director of Global Human Resources at Zilog, Inc. As the Director of Global Human Resources,

May was responsible for the entire company's domestic and international human resource function. Prior to her time

at Zilog, May was the Project Manager responsible for the restructuring of North America Hallmark Cards, Inc., as

well as, the Human Resources & Organizational Consul-tant (HRO) for the IT Division (700 plus employees).

Prior to Hallmark, May was an entrepreneur working at a start-up company, Shawnee Oaks Manufacturing.

May holds a Master’s of Science in Human Resources from Loyola University Chicago and a Bachelor of Science from

the University of Illinois Champaign-Urbana. May has a Senior Professional Human Resources (SPHR) certif i-

cation and currently serves on the Northern California Human Resources Association (NCHRA) Board of Direc-

tors and is currently the President Elect.

8

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January

Continuing Education Calendar

Because of our commitment to your development, and possible through our status as a non-profit, NCHRA offers nationally recognized training and development courses for less than half the rate for the industry, all with recertification credit for those who are certified. For a complete up-to-the-minute list and to register, please visit www.nchra.org> View All Events. (Below event list subject to change)

January 20131/8 Successful Project Management Skills for HR: eProgram Series Begins (Online)

1/8 Practicing HR in a Global Economy: eSummit Series Begins (Online)

1/8 HR as Business Partner: A Talent, Not a Title (Santa Rosa)

1/9 HR as Business Partner: A Talent, Not a Title (Pleasanton)

1/10 Employment Law Briefing (Santa Cruz)

1/10 HR as Business Partner: A Talent, Not a Title (San Mateo)

1/14 Core Competencies for Practicing HR in CA – Part One: eProgram Series Begins (Online)

1/16 Employment Law Briefing (Santa Rosa)

1/16 HR as Business Partner: A Talent, Not a Title (San Francisco)

1/17 HR as Business Partner: A Talent, Not a Title (Oakland)

1/18 Accomplishing More with Less: Time-Saving Strategies for an Overtaxed World (Free Member Webinar)

1/23 HR as Business Partner: A Talent, Not a Title (Santa Cruz)

1/24 2013 Legal and Legislative Conference (San Francisco)

1/25 Polishing Your Resume to Perfection (Free Member Webinar)

1/28 12-Week PHR/SPHR Certification Preparation Courses Begin (Locations throughout the Bay Area and Online)

1/29 Ins and Outs of Base Salary (San Francisco)

February 20132/6 Developing Core Competencies for the New HR Practitioner: eProgram Series Begins (Online)

2/7 Employment Law Briefing (Walnut Creek)

2/7 Onboarding: Starting Employees Off on the Right Foot: eProgram Series Begins (5 Online Sessions)

2/7 HR as Business Partner: A Talent, Not a Title (Fairfield)

2/12 Designing and Managing a Salary Structure (San Francisco)

9January 2013

2/13 HR in CA: Handling Time Off & Leaves of Absence Requests (Peninsula)

2/13 HR as Business Partner: A Talent, Not a Title (San Rafael)

2/19 HR as Business Partner: A Talent, Not a Title (Santa Clara)

2/20 Mastering Workplace Mediation (2-Day Program) (San Francisco)

2/20 HR as Business Partner: A Talent, Not a Title (Sacramento)

2/20 Employment Law Briefing (Santa Clara)

2/20 Solo eSummit Series Begins (Online)

2/21 Leveraging Influence and Motivating Others (Walnut Creek)

2/22 Employment Law Update: Stay in the Know (Free Member Webinar)

2/25 Online 7-Week GPHR Certification Preparation Course Begins (Online)

2/26 Establishing a Robust Career Development

Program (San Francisco)

2/26 HR as Business Partner: A Talent, Not a Title (Walnut Creek)

2/28 HRIS Summit (Santa Clara)

2/28 HR as Business Partner: A Talent, Not a Title (Napa)

March 20133/1 Getting Employees to Commit to Wellness (Free Member Webinar)

3/5 Conflict Resolution for HR Managers: eProgram Series Begins (4 Online Sessions)

3/5 Elevate Talent: When HR and Marketing Join Forces (Santa Clara)

3/6 Practical Accounting and Finance for HR (Santa Clara)

3/6 PERM Labor Certification and Pathways to Permanent Residence (San Francisco)

3/7 Coaching for Strategic-Thinking HR Leaders and Managers (San Jose)

3/7 Leveraging Influence and Motivating Others (Santa Rosa)

3/8 Employment Verification Part 1: Form 1-9 Compliance and Updates (Free Member Webinar)

3/11 6-Week Online CA Certification Preparation Course Begins (Online)

3/12 Conducting Effective Workplace Investigations (2-Day program) (San Francisco)

3/13 NonProfit HR Summit (San Francisco)

3/13 Designing Strategic Initiatives (Pleasanton)

3/13 Economics for HR: What Is Value and How Do People Create It? (Walnut Creek)

3/15 4-Day Condensed PHR/SPHR Certification Preparation Course (East Bay)

3/15 Business Behaving Well: Adopting Social Responsibility (Free Member Webinar)

3/15 The Winds of Change: Successfully Navigating Workplace Transitions (San Francisco)

3/19 HR in CA: Addressing Complex Time Off & Leaves of Absence Challenges (San Francisco)

3/20 Conflict Resolution: Master the “CALM” Approach (San Francisco)

3/21 Moving from Cost Center to Strategic Partner (Oakland)

3/21 HR 360: Developing a Revenue-Driving HR Strategy (San Francisco)

3/21 HR Metrics & Analytics Conference

3/22 Employment Law Update: Stay in the Know (Free Member Webinar)

3/26 Inclusive Leadership: People, Performance & Profitability (San Francisco)

3/27 HR in CA: Ensuring Successful Hiring & Termination Practices (Peninsula)

3/27 Moving from Cost Center to Strategic Partner (Santa Cruz) HR

10

In the middle of May 1860, delegates to the Republican National Convention met in Chicago to choose the party’s nominee for president. The United States faced

its greatest crisis since the Revolutionary War. The Demo-cratic Party was so bitterly divided that it had been unable to even choose a candidate at its own convention, so the man the Republicans selected would almost certainly become president and face the Herculean task of dealing with seces-sion. In this moment of crisis the delegates could have chosen either of two of the most accomplished politicians in America, William Henry Seward or Salmon P. Chase. Both had been United States senators and governors of major states. Both were superbly educated and had decades-long careers of public service. Both were renowned for their work in the antislavery cause. Both were at the peak of their powers and reputation. Instead the convention chose a one-term congressman whose claim to fame was an unsuccessful run for the Senate from Illinois: the convention chose Abraham Lincoln.Given the gravity of the crisis and what was known at the time about the candidates, choosing Lincoln instead of

Seward or Chase seems an act of shocking recklessness. Why pick a virtual unknown over two experienced and accomplished men of national stature? But there’s a tougher and even more important question: Did their choice matter? Would Seward or Chase have governed as effectively as Lincoln? Was Lincoln indispensable?

When groups succeed, leaders often get the credit. When groups fail, leaders often get the blame. Should they? Another way of asking this is: how much, exactly, does it matter who leads? Are individual leaders truly responsible for the end result, or do they just happen to be there—for better or worse? Is history made by forces outside our control, or can leaders make a real difference?

With Lincoln, questions like this seem almost heretical. We revere Lincoln. He must matter. But it’s not so clear that this is the case, and it is certainly not clear that every leader matters. Sometimes leaders have no choice. No presi-dent could have avoided declaring war on Japan after Pearl Harbor. But a president other than George W. Bush might not have taken the country to war in Iraq in 2003.

By Gautum Mukunda, Harvard Professor and HR West 2013 Keynote Speaker

High-Impact LeaderHunting the

11January 2013

The trick—and this book is dedicated to it—is figuring out which leaders matter, and when and why, and what lessons we can take from those who do. In puzzling out the answers to these questions, we will focus on those individuals who seem very different from everyone else who might have been in their shoes. The consistent pattern of their careers—and there is a consistent pattern—will help answer our question about which individuals in history really did have an impact. It will help identify contemporary leaders who could have a large impact, and even evaluate candidates for leadership. Along the way we will build a new theory about leaders that, even as it acknowledges that most individual leaders have little impact, identifies the relatively rare circumstances when a single individual in the right place, at the right time, can make history.

Philosophers and social scientists have debated the role of leaders for centuries. Plato, writing his Republic in the fourth century B.C., argued that the ideal city would have an elaborate system to choose its leaders that made any individual leader replaceable. Thucydides, writing just a bit earlier than Plato, took a very different position by describing how individual Athenian leaders, particularly Pericles, played a crucial factor in the course of the Pelo-ponnesian War, as their varying skills and preferences led directly to Athenian victories and defeats.

Many, many have followed the Greeks’ lead, but two nine-teenth-century thinkers have become more contemporary champions for each viewpoint. Karl Marx argued for the unimportance of individual leaders, proclaiming, “Men make their own history, but they do not make it just as they please; they do not make it under circumstances chosen by themselves, but under circumstances directly found, given, and transmitted from the past.” Thomas Carlyle, the Scottish writer who named economics “the dismal science,” famously declared for the other side: “The History of the world is but the Biography of great men.”

Our instincts might lead us to side with Carlyle (and Thucydides), to think that leaders matter. Certainly, many leaders (especially the successful ones) make this claim—just have a look at the business section of your local bookstore. But social scientists who systematically study leadership generally agree with Marx. From psychology to political science to management to economics, researchers who study leadership argue, or assume that individual leaders are surprisingly unimportant.

Strikingly, social scientists in every field have identified different versions of the same three forces that, together, minimize the impact of individual leaders. Although these three forces have only sometimes been explicitly identi-fied, they underpin every social science theory that argues or assumes the dispensability of individual leaders. The

combination of all three forces usually means that individual leaders have little or no real impact on the organizations they lead. The forces are:

1. The external environment: The external environment forces leaders to act in response to its pressures, leaving individual leaders little control or influence on policy and implementation.

2. Internal organizational dynamics: Leaders respond to the bureaucratic politics and interests of constituencies within their organization, making the identity of the leader unimportant as long as the internal dynamics of the organization remain constant.

3. Leader selection systems: The process by which leaders come to power homogenizes the pool of potential leaders. Different people might have acted differently, but those who would have chosen differently never gain power in the first place.

Forces 1 and 2—the external and internal forces—can be enormously strong and severely limit a leader’s impact. This problem is compounded by force 3: how organizations choose leaders. Organizations tend to select their leaders carefully, so managers become “more and more homogenous” the higher you go. Or, to put it another way, organizations try to weed out the crazies, the incompetent, or anyone who just doesn’t fit in. That means that CEOs and other leaders tend to be drawn from a pool of candidates that contains little variation. Established interests within organizations move to control the succession process to ensure that the winners are conducive to their interests. Management is important, but individual managers need not be.

The same is true of other selection processes that “filter” the candidates for leadership. The process will tend to prevent people with unique personalities from gaining leadership positions, or the state’s governing political ideology will ensure that only a certain type of person can come to power, or the process of choosing a leader will match person to circumstance.

The upshot of the three forces? Some person must fill the role of leader, but which person may not matter at all.

Given the power of the three forces, it might seem hope-less to believe that a leader could have any impact. Yet sometimes, particularly during crises, forces 1 and 2 are weak enough to allow leaders considerable discretion. And when someone manages to bypass the process that filters candidates for office, a leader who is very different from all the people who almost won can gain power. If that leader is sufficiently unconstrained, he or she can have a large impact.

What do we mean by leader impact? Should we give a leader credit or blame for everything that happens while

12

he or she is in power? This would ignore everything that the social science arguing for the relative unimportance of leaders has to teach us. Instead, I thought that the defini-tion of leader impact grows out of the influence of force 3. Not everyone is equally likely to become leader. We know who actually gained power and what happened afterward. If things had fallen out differently, someone else might have filled the same role. Leader impact can best be thought of as the marginal difference between what actually happened and what would have happened if the most likely alternative leader had come to power. A leader has impact because what happened to the organization on his or her watch is very different because he or she was in charge instead of one of the other people who plausibly might have been. Measuring leader impact depends on studying a historical process closely and identifying, as well as possible, what might plau-sibly have happened.

Think about Jack Welch’s time as CEO of General Elec-tric (GE). By most standards, Welch was an enormously successful CEO, one who did so well that Fortune named him the “Manager of the Century.” Welch’s predecessor as CEO of GE, Reginald Jones, was also an extraordinarily successful corporate leader. He was named CEO of the Year three times by his peers and dubbed a “management legend” by the Wall Street Journal. GE puts extraordinary effort into picking good managers and good CEOs. So how important was Welch?

Asking this question isn’t to suggest that Welch wasn’t a superb manager. The fact that an organization as thorough as GE thought he was the right person for the job is, by itself,

evidence that he was, even without his record of success. Welch’s impact wasn’t GE’s success; though, it was the difference between how well GE did under his leadership and how well it would have done had GE picked someone else. Given GE’s skill at picking managers, there is every reason to believe that this alternative CEO would also have been a very good leader. Maybe he or she would not have been as good as Welch—but that still leaves a lot of room for the alternative CEO to have been very good indeed.

If you’ve read the book Moneyball or seen the movie, you’re already familiar with a version of this idea. One way of analyzing a baseball player’s value is to measure him against a “replacement player.” So if you want to know how good your third baseman is, you’d compare how well he hits and fields to a really good minor league player whom you could add to your team for virtually no cost. You should only pay your major league third baseman for the marginal value he adds over that replacement player. Here, we’re measuring leader impact by comparing a particular leader to a “replace-ment leader”—the person who could have had the job instead of the person who really did.

So, instead of just thinking of leaders as good or bad, or even high impact or low impact, think of each leader as existing on a distribution, one that might look something like a bell curve, of all of the people who might have gotten the job. Most leaders will be at the fat part of the curve. They, or someone very like them, were pretty likely to end up in charge. If, like Welch, they are the product of a careful process of selection and evaluation, then those leaders might be very good at their jobs. But they’ll also

13January 2013

be roughly interchangeable with other leaders who have been similarly chosen, and so have a low individual impact. We can call such leaders—one who are near the mode of the distribution—Modal leaders. Others, the high-impact leaders who exist at the tails of the distribution, we can call Extremes.

The question, then, is how we can separate the Extremes from the Modals. The ideal way would be to rerun history over and over again and observe the different outcomes. Suppose we could rerun, say, the United States presidential elec-tion of 2000 many times, keeping all structural and candidate-specific factors (such as the political balance of power in the United States and the particular skills and personalities of George W. Bush, Al Gore, and John McCain) constant, but allowing random factors (such as the weather and the design of ballots in Florida) to vary. As these random factors vary, different candidates would win. Bush and Gore might win more often than other candidates, but sometimes McCain would win, and sometimes, as small events further in the past reverberated and caused large changes, other men or women who never even came close in the real world would become president.

The people who would have won most often in our imaginary replays of history are the most likely winners. They have the characteristics best suited to passing through the filters that a particular system uses to choose leaders. With a system that’s good at filtering the prospects, they’re Jack Welch and his cohort of GE managers. These are the Modal leaders, the ones near the mode of the distri-bution produced by the process. If one Modal replaces another, the difference in outcomes would likely be small. This is the Jack Welch scenario.

Sometimes, however, a leader from the tails of the distribution can win due to some rare combination of events. That person’s characteristics make it unlikely, but not impossible,

for him or her to pass through the organization’s filters. These Extremes are likely to be high-impact leaders—for better or worse.

You probably see the problem with this approach: we can’t do it. So how do we run the “Jack Welch test” more broadly? How do we figure out any one leader’s marginal contribution when compared with whom else might have gotten the job? These questions really focus on force 3, the process used to choose leaders (throughout the book I’ll call this the Leader Filtration Process, or LFP). No matter who gets the job, that leader will largely face the same kinds of forces that will constrain his or her actions (the internal and external constraints), and so the ques-tion is, Will he or she make signifi-cantly different choices than the other plausible candidates? HR

Gautam Mukunda is an Assistant Professor of

Business Admin-istration in the

Organizational Behavior Unit of

Harvard Busi-ness School. In his new book,

Indispensable: When Leaders Really Matter, he takes a hard look at the age-old question, “Does

history make the man, or does the man make history?” Mukunda has previ-

ously been published in The Washington Post, Security Studies, Parameters,

Politics and the Life Sciences, and Systems and Synthetic Biology. An

accomplished academic, Mukunda is a member of both the Council on Foreign

Relations, and the Massachusetts Insti-tute of Technology’s (MIT) Security

Studies Program and Program on Emerging Technologies. He is a Paul

& Daisy Soros New American Fellow, an NSF IGERT Fellow, and a Next Generation Fellow of The American

Assembly.

Reprinted by permission of Harvard Business Review Press. Excerpted from

Indispensable: When Leaders Really Matter. Copyright 2012 Gautam

Mukunda. All rights reserved.

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14

Lately much thought about leadership has focused on the idea of mindfulness for leaders. An impres-sive momentum gathers, and it draws attention to

what I believe to be the key element of great leadership, self-awareness.

In my years as President of the Great Place to Work® Insti-tute, it was my job to conduct and oversee research into what makes the nation’s top workplaces thrive. That meant studying these workplaces closely to come up with a deep understanding of what helps make people passionate about the places they work.

The reality is that creating a workplace of choice is no acci-dent. It is incredibly rare for workplaces to evolve organi-cally. Often it is the result of a concerted effort—a conscious plan set out by an employer, specifically a leader—to build a

self-awareness

bravery

kindness

Self-AwarenessAttribute of a Great Leader

By Hal Adler

great workplace. A company paying attention to the needs of its workers is repaid for that effort. People enjoying their work are more productive, stay at jobs longer, and are healthier. Not surprisingly these companies are profitable. The companies represented in the FORTUNE 100 Best Places to Work have been shown to consistently outper-form the S&P 500. They are businesses doing well by their employees, their customers and the world at large.

After leaving the Great Place to Work® Institute, I set out with the goal of determining the underlying principles that informed the leadership at these companies in order to help others emulate their success. I quickly found that there are common characteristics of great leaders in every sector. I call these common characteristics the Five Attributes of Great Leaders: self-awareness, bravery, kindness, innova-tion, and inspiration. I believe these characteristics taken

innovation

15January 2013

Self-AwarenessAttribute of a Great Leader

together and thoughtfully implemented have the ability to effect powerful change and the foundation necessary for success is self-awareness.

What is Self-Awareness?“Be the change you want to see in the world” – GandhiSelf-awareness is the cornerstone of great leadership. A leader that exhibits self-awareness displays a clear sense of identity, a sense of purpose, and a distinct, consistent way of interacting with others. Without self-awareness, char-acteristics such as bravery or kindness, while valuable, are ultimately stripped of their power. For instance, bravery without self-awareness can be reckless—even dangerous. Innovation without self-awareness often seems more chaotic than cutting-edge. Self-awareness allows one to be directed. By thoughtfully attempting to understand the outcome you wish to produce, you can more effectively utilize qualities such as bravery or kindness in a focused way to maximize their impact.

Leaders with a keen self-awareness—working within an organization allowing them to implement their visions—create positive working environments, driving performance, and employee engagement.

“Your true north cannot be redirected by external pressures. Once you start trying to satisfy one shareholder, you’ll have to deal with another shareholder with a different point of view. Same with board members and all your other constitu-encies. If you allow yourself to be pulled off course, you’re going to destroy your enterprise.” – Bill George

Bill George is a fantastic example of a leader that makes self-awareness his basis of leadership. For years, George has been an outspoken proponent of integrating mind/body awareness pursuits and work. While this may seem too esoteric to many organizations, George speaks openly about how meditation and his mindfulness practice provides him with energy, creativity, clarity, and calm. Bill George is a professor of Management Practice at Harvard Business School and former CEO of Medtronic, the world’s leading medical technology company where he presided over growth from a $1 billion company to a $60 billion company. And he’s not alone in his belief that meditation and mindfulness are valuable skills: Industry leaders including Google, Apple, Yahoo, Aztra Zeneca, IBM, 3Com, Texas Instruments, Raytheon, and Nokia have all provided meditation training to their employees.

Under CEO Henry McKinnell’s leadership, the Pharmaceu-tical giant Pfizer instituted a 360-degree performance evalu-ation process that allowed employees at all levels to provide feedback for each other. When the results came in, McKin-nell posted them to the company intranet for all to see. While his openness could also easily be considered an act

of bravery, what drove his behavior was clarity of purpose. His commitment to transparency and his confidence in his ability to address criticism in a constructive and straightfor-ward manner is a model of self-awareness.

Leaders such as Bill George and Henry McKinnell demon-strate the ability to be self-aware allows one to not only have a greater sense of perspective about themselves but also a wider view of the role they play within their busi-ness. By acting with a clear sense of identity and purpose and by maintaining a distinct, consistent way of interacting with others, leaders can more effectively communicate and inspire.

Simple Steps Lead to Big ChangePerhaps the most important thing to understand about self-awareness is that we all can have it. Self-awareness is an innate human characteristic. More often than not, the work is in relearning skills—getting back to our natural state—as opposed to being introduced to something new. Why is it that we predictably forget such a critical life skill as we grow older?

Cultivating self-awareness is not as difficult as one might think. It does require a conscious effort to begin—but like any skill, with more practice it becomes progressively easier, and over time becomes internalized and simply a part of one’s orientation to the world. Developing self-awareness and mindfulness requires one to consistently compare their feelings and experiences in different situations with different people in a personally probing and open way.

How to begin? It’s as simple as taking a deep breath. One of the key aspects of self-awareness is the ability to take a moment to gain perspective and focus on the present. Often, simple exercises allow one to just step out of the moment and evaluate. One easy way is to take a brief walk to clear your head—just step out of the moment literally and figura-tively and re-evaluate.

When tackling a task or interacting with others it’s impor-tant to remember to:

• Let go of held over frustrations—Concentrate on the task or interaction at hand without allowing negative aspects of your daily life to bleed into your thinking and cloud your judgment.

• Withhold judgment—When interacting with others, attempt to take their entire experience into account and take time to understand the full context of that interac-tion to the best of your ability. Refrain from making snap judgments. Try to see the world through their eyes.

One of the keys to maintaining self-awareness is to be aware of others. When interacting with others, consider their total experience. Consider their role and how they experience you

16

as an employee, supervisor, or leader. By taking these things into consideration and gaining a greater understanding of others’ point-of-view, leaders can speak in ways that others find most meaningful. For example, while leaders often have the ability to simply say, “Do this,” showing the rationale behind the decision-making process allows others to have confidence in how those decisions are being made. Further, it displays confidence in one’s own decisions and action while conveying trust and a sense of shared purpose. Self-aware leaders understand the value of making time to proac-tively develop relationships based on mutual respect.

Other simple steps include:

• Integrating the language of values and vision into your daily life

• Allow yourself to surrender to those events by with-holding judgment

• Be patient and forgiving with yourself and others

Meditation Builds Self-AwarenessAs I mentioned above, top thinkers such as Harvard professor and former Medtronic CEO Bill George and industry leaders including Google, Apple, Yahoo, Aztra Zeneca, IBM, 3Com, Texas Instruments, Raytheon, Sales-Force, and Nokia all believe in the value of meditation training for their employees.

Bill George pinpoints the time when he first began to meditate as the time when he found the greatest balance and success as a leader. Meditation—something as simple as sitting down for ten minutes before work, clearing one’s mind, and focusing on breathing, allows you to relax and refresh. Or maybe just feel your feet as you walk; how your weight is distributed over the soles of your feet and how they move as you slow your stride. Take time to slow down and note the experiences we have every moment but tend to tune out. This is mindfulness, the most important building block of self-awareness.

Self-Awareness and Great LeadersCompanies and leaders who pay attention to the needs of their workers are repaid for their efforts. By promoting self-awareness and mindfulness in one’s daily life, leaders can create work environments that are challenging, enjoyable, and rewarding—both personally and for the bottom line.

Studies show that 75% of a leader’s success is not about what they know but about how they behave and commu-nicate. Companies spend a great deal of time training to improve skill sets, but the difference between good and great leaders is often not about skill sets or the quality of manage-ment toolkits and training within their reach, but rather their ability to engage others.

It’s an exciting time as more and more attention is being paid to self-awareness and leadership. Leaders have an opportunity to lead by example, developing self-awareness within an organization resulting in powerful transforma-tions, more fulfilled workers, and an increased bottom-line success. HR

Hal Adler is President and Founder of Leadership Land-ingTM. Prior to founding Leadership LandingTM, Hal

was President of Great Place to Work® Institute, the global research and consulting firm best known for creating the gold

standard in workplace recognition; the annual FORTUNE 100 Best Companies to Work For. Hal joined the Institute in

2004 as a consultant, and in 2006 was asked to be President of the company. Hal's success over the years has been attributed to his keen and intuitive understanding of leadership, workplace

culture, and change. Hal is often touted as someone with a unique and special understanding of what makes organiza-tions tick and what individual leaders can do to support and

foster high trust and high engagement. Cited by clients as a "Trusted Advisor" and "Master Guide", Hal deeply under-

stands cultural transformation, and knows how to facilitate it, one leader at a time.

17January 2013

While using a three step process for leadership—Vision, Alignment, Execution—with senior leaders in different industries, each team we have worked

with has had the same glaring problem: alignment. Many have done quite well creating a compelling vision for their organization—the direction they will go for the next one to three years. In the past, organizations have set direction with a vision for longer periods of time, but with the weak and uncertain economy of the last few years, three years is about as far in the future as they feel comfortable looking.

The Leadership Role Only HR Can Play

By Rogene Baxter and Chris Bennett

18

Yet, even with a declared vision, alignment (which refers to getting everyone working in sync toward the same goals and vision) seems elusive. Often alignment is simply skipped over in favor of execution, which is something these senior teams do a lot and seemingly well. One wonders, though, how they are doing with making decisions, implementing new projects, and staying the course without alignment. Who’s going to implement their strategies in a consistent and productive way?

Let’s step back and look at the three leadership steps individually:

VisionA vision often gets hung on the wall and then regularly ignored. Sound familiar? During a recent leadership devel-opment program in a large organization, we asked managers what their department was doing to directly impact achievement of the vision. To be honest, it was an awkward moment. First, they weren’t sure of the vision, and second, once reminded, they had to stretch to come up with answers. Eventually, it became a lively discussion and opened the door for them to be more aware from a strategic point of view rather than just focusing on their own department.

Without a vision that people understand and agree with, it is not a surprise that alignment is a problem. What are you aligning to if you have a vision that no one buys? If the word vision puts you off or feels too soft, think in terms of a “declared direction.” Whatever you call it, it is imperative to figure out how to use thinking forward as something to be measured against. Some best practices for creating a vision include being bold, looking beyond where you’ve been, and inviting a diverse representation of different stakeholders to be a part of the generation of ideas. Once it seems to be taking hold, invite as many people in the organization as you can to help refine what you’ve come up with.

AlignmentWhen this term is mentioned, people usually think, “Do you mean we need better communication?” Of course, that is true for all of us! Yet while alignment does call for improved clarity and more consistent communication, it is also much more than that.

Alignment is more appropriately seen as getting people moving together in the right direction. As many of us have experienced, silos in organizations are common—even though most employees and departments are tied to others for their success. Unless individuals and groups move together in the same direction, organizational success is less robust than it ought to be, sometimes even grinding to a halt due to competing approaches. According to John Kotter, “the scope of alignment is much like the difference between

a football quarterback attempting to describe to his team the next two or three plays versus him trying to explain to them a totally new approach to the game to be used in the second half of the season.”

Does your organization operate as a team? Who needs to be included in alignment for an organization-wide team to become a reality? Anyone who can help implement the vision and strategies is relevant. How about starting with the senior leadership team and cascading it down through the organization: managers, managers’ direct reports, peers, staff throughout the organization’s different locations, vendors, and even customers. Your customers want you to be successful, and they love it when they know what you are trying to accomplish. This will work, if you have someone who commits the resources to make it happen.

Now imagine, if you will, a "super group" in that same organization with a unique combination of communication talent, people skills, and lateral reach to take alignment from a fond dream to an operational reality. And who could these heroic employees be? Yes, HR is in the right place with the right skills to spearhead this effort. By lateral reach, we mean that this department has in-depth knowledge of all other departments because they hear the issues and successes of each one. In turn, departments rely on HR to support what they do and how they make things happen.

But before you cry “I can't add another thing to my over-flowing plate,” we have one more piece of good news for you: it's absolutely not about doing more things, it's about embedding alignment thinking into the things you're already doing.

Here are some real examples:

If you are at the table as CHRO or VP of HR, you have direct impact with the senior leadership team and can promote these concepts to get buy-in at that level. You can support their leadership development using tools to bring alignment home and encourage cascading the learning and techniques down through the organization. Don’t worry about doing this quickly; instead allow each step to be absorbed, practiced, and then passed on.

At an operational level, we have a client preparing to reor-ganize his department, because he’s concerned that he has been underutilizing a section of his staff. He is excited about embedding alignment strategy to support what he sees as a bold step, giving people the tools and the confi-dence to move forward.

On another front, HR generally supports recruitment, hiring, and on-boarding. Working with hiring managers in the context of alignment is a powerful step. Aligning what

19January 2013

the manager is looking for with a discussion about how this position/role supports the organization’s vision is a new question added to the conversation you already have. In the hiring interview, a question or two about vision and posi-tion/role can be added to the interview. Once the candidate is hired, vision of the organization and alignment need to be a part of the on-boarding process.

The impact HR can have by focusing on alignment with the vision will be visible and strategic. As some line managers have commented in our consulting and training sessions, “Now I know who to call in the HR department for help—I never knew nor was able to find the right person to talk to. Consequently, I’d forge ahead by myself—with results that were sometimes more mediocre than successful.”

ExecutionAs your leadership process evolves, leaders at all levels will more often make decisions and choose projects by evaluating if and how their choices will get the organiza-tion closer to the vision. This analysis takes intention and on-going commitment. We recently worked with an execu-tive team that began by testing every major decision by this criterion, asking: “How does this decision get us closer to our vision/or keep us moving in our “declared direc-tion?” They were surprised to learn that they were regularly tempted to make decisions that would distract them from the journey. Staying focused by working the process gave them the determination to put strategies in place that would get them where they wanted to go.

This brings up another opportunity for HR to add value: use your facilitative skills to ask the questions leaders might have missed when focus has slipped or something exciting has not been thought out carefully.

Once clear about the direction forward and with increasing alignment in the organization, value of their choices and execution of strategies at the task level will be done with energy, enthusiasm, and engagement.

And when that happens, senior leaders will be coming to you for the real scoop on how your company vision lives and breathes. HR

Rogene Baxter founded Bridgewater Group LLC in 1986. Focusing on leadership, management, and team develop-

ment consulting and training, Rogene's work has brought increased organizational capacity and talent retention to

companies across three continents. She works collabora-tively with clients to align their business goals and strate-

gies, performance needs, professional development, and performance support. A Registered Nurse, Ms. Baxter holds

a BA in Behavioral Science and an MA in Career Devel-opment. Rogene was awarded the Certif ied Manage-

ment Consultant (CMC) designation from the Institute of Management Consultants. This mark represents evidence of the highest standards of consulting and adherence to the

ethical canons of the profession.

Chris Bennett has eighteen years’ experience in speaking, training, and writing. She is Principal of WorkVantage,

a workplace training and consulting f irm which delivers remarkable results with a human touch. She is also a Sr.

Associate with Bridgewater Group, where she specializes in helping organizations bridge the gap between strategies, operations, and people. Chris is an expert in career-related

training, including self-marketing and retirement plan-ning. She is co-author of the career self-help books Me,

Myself and I, Inc: 10 Steps to Career Independence, and Strong Voices, Real Choices: Professional Women Speak

Out About Their Decision To Work Less. Chris also special-izes in addressing management development issues such as coaching for success, making succession planning work, and

decision-making.

20

new member welcomeNCHRA would like to welcome the following new members who joined in the months of October and November, 2012. As our numbers grow, we become stronger in our ability to support the profession. Thank you and welcome!

Melissa AiuFaye AngDenyse BadheshaEvelin Bailey, CAEMark BaquiranAndrew Bartlow, SPHREra BatmanisAmy BeesonR. Lorenzo Blades, PHRBonnie BlankNancy BrazilJohn BronsonMimi CampbellAna Carreno, CAEMeredith Cassady, PHRFlorbela CavaleiroKathleen ChakkaphakKathryn Chan, SPHRKathy Chen, MBAMichael CilleyJames Clift, Esq.Heidi CollinsEmily ConlanJazmine CorbinCorinne da CunhaBrenda De Ramus, PHRYvonne DenisonArti DhuperCindy Dittman, SPHRMarina Djordjevic-GomezKathleen Dunn, SPHR - CASindia EstradaKaryn EzellPatricia Fisher, PHRJodi Fraser, PHRMonika GamzoNathalie Gireaud-FerkoKathy GlubetichCarol Gorski, SPHRMelissa Gottshall, PHRAmanda GriffithMarina HarperColin Heldt, SPHRSuzanne Hinton

Tara Hoey, PHRLinda HomTracy HughesZandra Hughes, PHRWanda HumphreyJuliana JohnsonCynthia KangGalina Karpinska, SPHRAntricia KimuyuSumitra krishnanKelley Lauritzen, SPHRDebbie LeBlancKelly LejanoClare LetourneauPatricia LewisMichaele LienJohn LightDeborah LindsayChristina LucasLaShelle ManningApril Masters Ruhne, SPHRElizabeth McCoy, PHRRavi MistryLauren Morgan, SPHRCheryl Morse, PHRTess MuetingAngelina MunozJanet NavarroSholly Nicholson

Ornella Novello, PHRCindy OConnorAllison Oppocher, CAEMaria OrozcoVanessa PadillaTamaira Patton, PHRDeidra Peiler, PHRElizabeth PeregrinoElizabeth Perusse, SPHRTia PhillipsSarah Ruane, PHRApril RuizGina ScoralleCharles SheppardChristina SoaresDebra SprinkelAmy SteadmanSarah StephensMichelle ThompsonAsako TsumagariMichael Ulibarri, SPHRJeff UnverferthNorma VillegasLori WaughJeff Wheeler, PHRAmy WhitescarverJaime Yas, CAEJoyce Ybarra HR

21January 2013

22

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