Agustin V. Arbulu C., CEOMetro Home Health Care
Summer 2012
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Individuals build organizations or succeed because they have a clear vision
◦Vision – 2 components
Core Ideology
Envisioned Future
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Drives Vision
Drives Strategy
Drive Climate/Culture
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Leaders Create the Climate for Success
50-70% of variance inOrganizational Climate explained by differences in Leadership Styles
28% of variance inFinancial Results (profits and revenue) explained by differences in OrganizationalClimate
Individual Competencies Leadership
StylesOrganizational
ClimateResults
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Emotional Intelligence We feel before we think Our thoughts are emotionally toned by the
oldest parts of the brain, not the neocortex
Individual Competencies
LeadershipStyles
Organizational Climate
Results
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Competencies Individual Emotional Intelligence suggests
how easy or difficult it will be to change leadership behavior to match the situation
Emotional Intelligence influences the optimal choice of leadership styles and the successful implementation of related behaviors
Individual Competencies
LeadershipStyles
Organizational Climate
Results
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Leadership Styles
Individual Competencies
LeadershipStyles
Organizational Climate
Results
Patterns of behavior Your ability to match your behavior to the
situation Use of the full array of styles
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Organizational Climate
Individual Competencies Leadership
StylesOrganizational
ClimateResults
“The feel of the place” Your opportunity to create “star”
performers The source of discretionary energy
Individual Competencies
Why do some intelligent people including students walk blindly through the realms of life unable to perform?
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Why Do Smart People Fail?
Studies found 81% of the competencies that distinguished outstanding managers were related to emotional intelligence. Boyatzis, (1982)
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Why Do Smart People Fail?
“In studies of 40 different corporations…emotional competencies were found to be twice as important in contributing to excellence as pure intellect and expertise.”Goleman, WWEI (cf. Jacobs and Chen, 1997)
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Further Data
Developing skills pertaining to self-awareness, social awareness, self-management and relationship management, account for close to 90% of what distinguishes outstanding performers or leaders from average ones.
“IQ is a threshold competence, . . . but it doesn’t make you a star. Emotional Intelligence can.” William Bennis
“An unprecedented number went on to get MBAs…in the past it helped them advance in their careers. [But] . . . what sets people apart….all boils down to EI.” Lori Kocon
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What Equates To Outstanding Performance?
67% are “emotional intelligence”“emotional intelligence” competencies
33% are related to cognitive or technical skills
To put it another way:
EI drives 2/3 of outstanding performanceEI has 2X the weight of cognitive ability and
technical skill combined
(See pages 31-37, Working with Emotional Intelligence)
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“The capacity for recognizing our own feelings
and those of others, for motivating ourselves, for managing emotions
well in ourselves and in our relationships.”
Daniel Goleman
The keystone is the old Socratic admonition, “Know thyself” and using it to enhance one’s performance.
It is also means having the ability to read, transmit to and engage with other people
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Positive impacton others
Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
RelationshipRelationshipManagementManagement
Self-Self-ManagementManagement
Self Others
Aw
aren
ess
Act
ion
s
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Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
Relationship Relationship ManagementManagement
Self-Self-ManagementManagement
• Emotional Self-Awareness• Accurate Self-Assessment• Self-Confidence
• Empathy• Organizational Awareness• Service Orientation
• Emotional Self-Control• Transparency• Adaptability• Achievement Orientation• Initiative• Optimism
• Developing Others• Inspirational Leadership• Influence• Communication• Change Catalyst• Conflict Management• Teamwork & Collaboration
Any measurable characteristic of a person that differentiates level of performance in a given job, role, organization, or culture
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Social Role, Values
Self-Image
Trait
Motive
Social Role, Values
Self-Image
Trait
Motive
SkillsKnowledge
Necessary fortop performancebut not sufficient
Characteristicsthat lead to longer-termsuccess
Characteristicsthat lead to longer-termsuccess
◦Focuses on behaviors/traits/characteristics that are developmentally scaled
◦For each competency, there is a target level of behavior that, when met or exceeded, positively impacts performance
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◦ One size does not fit all. “…often various combinations of compe-tencies lead to success.” David McClelland, “Where Do We Stand on Assessing Competencies,” 1994
◦ One competency may compensate for another.
◦ Certain combinations of competencies may contribute to outstanding performance.
◦ Some competencies are more critical than others.
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Positive impacton others
Self Others
Aw
aren
ess
Act
ion
s
RelationshipManagementRelationshipManagement
Self-Awareness
Self-Awareness
SocialAwareness
SocialAwareness
Self-Management
Self-Management
The key source for enhancing performance:
Emotional Self-Awareness: Recognizing how our emotions affect our performance
Figuring out one’s emotional pulse
Accurate Self-Assessment: Knowing one’s own inner resources, abilities and limits
Having a sense of one’s own strengths and limits
Self-Confidence: A strong sense of one’s self-worth and capabilities
Being self assured or having presence
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The essence of Self-Awareness is seeing yourself as others see you.
◦People with high Accurate Self-Assessment (ASA) have smaller gaps between self and others’ views than people who score low on ASA* (Burckle & Boyatzis, 1999). * N=214, t-values range from 2.27 to 6.46, p<.001
◦Key starting component. Individuals who accurately assess themselves can move toward success!!
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Self-Regulation◦Emotional Self-Control: keep disruptive emotions and impulses in check
◦Transparency: maintains integrity, acts congruently with one’s values
◦Adaptability: flexibility in handling change
Motivation◦Achievement: strives to improve or meet a standard of excellence
◦Initiative: ready to act on opportunities◦Optimism: persistence in pursuing goals despite obstacles and setbacks
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◦ Empathy: senses others’ feelings and perspectives, and takes an active interest in their concerns
◦ Organizational Awareness: reads a group’s emotional currents and power relationships
◦ Service Orientation: anticipates, recognizes, and meets customers’ or clients’ needs
Note: Gus Pagnois, a retired general, highly decorated in both Vietnam and first Gulf War, states empathy is an “absolutely vital quality” in being a leader . . . helps know “where you can draw the line and make it stick.”
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Positive impacton others
Self Others
Aw
aren
ess
Act
ion
s
RelationshipManagementRelationshipManagement
Self-Awareness
Self-Awareness
SocialAwareness
SocialAwareness
Self-Management
Self-Management
Leading Others
◦ Developing Others: senses others’ development needs and bolstering their abilities
◦ Inspirational Leadership: inspires and guides individuals and groups
◦ Change Catalyst: initiates or manages change
Working with Others
◦ Influence: has impact on others
◦ Conflict Management: negotiates and resolves conflict
◦ Teamwork and Collaboration: works with others toward a shared goal
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It’s About Two Things:
◦Ability to lead, inspire others
◦Ability to cooperate, work well with others
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◦The leader’s personal characteristics/traits (competencies identified with EI)
◦The styles used by others
◦The organization’s espoused values
◦Specific leadership situations and the people involved
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◦Experience
◦A person’s strengths and weaknesses
◦Complexity of tasks
◦Time pressures
◦Risk associated with deviating from performance
◦Resources available
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◦Directive
◦Visionary
◦Affiliative
◦Participative
◦Pacesetting
◦Coaching
Comment: In times of uncertainty and change, successful individuals use the 6 leadership styles.
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Primary objective:
Getting immediate compliance
Questions to ask:◦ Who controls the work?
◦ What is the nature of performance feedback?
◦ What is the nature of the work of the group?
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Most effective:
◦ When applied to relatively straightforward tasks
◦ In crisis situations◦ When deviations from compliance will result in serious problems
◦ With problem employees (when all else has failed)
Least effective:
◦ When applied to tasks that are more complex than straightforward
◦ Over the long term◦ With self-motivated, capable employees
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Primary objective:
Provide long-term direction and vision for employees
Questions to ask:
◦ Is there a vision for the group or organization?
◦ Are employees committed to the vision?
◦ How is the leader perceived by his/her direct reports?
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Most effective:
◦ When a new vision or clear direction and standards are needed
◦ When the leader is perceived as the “expert” or the “authority”
◦ With new employees who depend on the leader for guidance
Least effective:
◦ When the leader does not develop employees
◦ When the leader is not perceived as credible
◦ When trying to promote self-managed teams and participatory decision making
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Primary objective:
Creating harmony
Questions to ask:
◦ What are the predominant employee/employee and employee/leader interactions?
◦ What is the nature of performance feedback?
◦ How are goals and standards represented in this organization?
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Most effective:
◦ When used as part of a repertoire
◦ When giving personal help
◦ In getting diverse, conflicting groups to work together harmoniously
Least effective:
◦ When employees’ performance is inadequate
◦ In crises or complex situations needing clear direction and control
◦ With employees who are task-oriented or uninterested in friendship with their leader
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Primary objective:
Building commitment and generating new ideas
Questions to ask:
◦ How are decisions made in this organization?
◦ How is poor or less-than- satisfactory performance dealt with?
◦ Who provides the direction in this organization?
◦ What is the level of competence of the employees in this organization?
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Most effective:
◦ When employees are competent
◦ When employees must be coordinated vs. managed
◦ When a leader is unclear about the best approach
Least effective:
◦ In crises◦ When employees are not competent, lack crucial information, need close supervision
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Primary objective:
Accomplishing tasks to high standards of excellence
Questions to ask:
◦ What happens when work is not performed to expectations in this organization?
◦ Does the leader feel comfortable delegating his work to others?
◦ What is the pace of work in this organization?
◦ What is the level of competence of the employees in this organization?
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Most effective:
◦ When employees are highly motivated, competent, know their jobs
◦ When managing individual contributors
◦ In making the organization move fast
◦ For developing employees who are similar to the leader
Least effective:
◦ When the leader cannot do all his/her work personally
◦ When employees need direction, development, and coordination
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Primary objective:
Supporting the long-term professional development of others
Questions to ask:
◦ Do employees have development and/or career plans?
◦ Are employees supported in achieving their professional development goals?
◦ Are employees interested in their own personal development?
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Most effective:
◦ When employees acknowledge a discrepancy in performance
◦ With employees who are motivated to seek professional development
Least effective:
◦ When the leader lacks expertise
◦ When employees require considerable direction and feedback
◦ In crises
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◦Leadership style employed in the work place impacts outcomes/results.
◦People’s perception of “what it’s like to work here”
◦Aspects of the environment that directly impact employees’ ability to do their jobs well
◦Determines how well leaders optimize their human resources and tap their “discretionary effort”
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◦Flexibility
◦Responsibility
◦Standards
◦Rewards
◦Clarity
◦Team Commitment
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Definition:◦ Lack of constraints in the workplace
◦ No unnecessary rules, policies, procedures, or practices
◦ New ideas are accepted freely
Questions to ask:◦ Do employees have to fight against unreasonable constraints?
◦ Is it easy to innovate/get new ideas accepted?
◦ Are there unnecessary rules and procedures?
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Definition:◦ Employees have a lot of authority delegated to them
◦ Employees have freedom to make decisions about doing their own job
◦ Employees are held fully accountable for the outcome of their work
Questions to ask:◦ Are important tasks delegated to employees?
◦ Are employees encouraged to take initiative?
◦ Are individuals encouraged to take risks based on their own judgment?
◦ Are employees allowed the opportunity to experience the success or failure of their own efforts?
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Definition:◦ The emphasis employees feel management puts on improving performance and doing one’s best
◦ The degree to which people feel that challenging but attainable goals are set for individuals and the organization
◦ The extent to which mediocrity is not tolerated
Questions to ask:◦ Does the performance bar rise every year?
◦ Can employees get away with doing less than their best?
◦ Is mediocrity tolerated?
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Definition:◦ Rewards and recognition linked directly to performance
◦ Rewards and recognition differentiate levels of performance
◦ People know where they stand in terms of their performance
Questions to ask:◦ Do rewards outweigh punishment?
◦ Are rewards tied directly to the quality of performance?
◦ Does good performance lead to increased opportunities for personal growth?
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Definition:◦ Employees know what is expected of them
◦ Employees know how those expectations relate to the larger goals and objectives of the organization
Questions to ask:◦ Do employees have a clear idea of what is expected of them?
◦ Do employees know how they personally contribute to the mission?
◦ Are goals, policies, procedures and lines of authority clearly articulated and understood?
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Definition:◦ People are proud to belong to the organization
◦ Everyone provides extra effort when needed
◦ There is trust that others in the organization are working toward a common objective
Questions to ask:◦ Do individuals and teams cooperate effectively to get the job done?
◦ Do conflicts get resolved effectively?
◦ Do feelings of trust, pride, and organizational loyalty exist in the workplace?
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◦Individuals who demonstrate the job competencies required perform better than counterparts who do not
◦Managers who use leadership styles effectively perform better
◦Competencies and styles impact leaders’ ability to create a positive organizational climate
◦Organizational climate impacts performance
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General Managers who created high performance climate for their teams achieved better margins*
* Global Technology Organization, Hay McBer 2002
* p< .06= Statistically Significant Difference
General Managersn=21
Creating HighPerformance orEnergizing Climatesn=11
Average 2001 Business Results
Gross Margin* Profit Margin*
Creating Neutral or DemotivatingClimatesn=10
48% 29%
36% 17%
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The earnings impact of creating a positive climate is substantial*
* Global Technology Organization, Hay McBer 2002
General Managers
(n=21)
Creating HighPerformance or Energizing Climates (n=11)Average 2001 Account Revenue = $356MM
Creating Neutral or Demotivating Climates n=10Average2001 Account Revenue = $250 MM
2001 Business Results for the Accounts ($MM)
Gross Margin Profit Margin
Dollar Value ofPositive Climate
$1,880 MM $1,136 MM
$900 MM $425 MM
$980 MM $711 MM
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Over time organizational climate predicts financial growth and performance*
*Life Insurance Leadership Study, LOMA & Hay/McBer, 1996
Pro
du
cti
ve
Org
an
iza
tio
na
l C
lim
ate
The average growth among outstanding executives totaled 63%; growth among typical executives totaled 24%
25%
50%
Financial Success
75%
25% 50% 75%
Outstanding Executives
Good Executives
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**p < .05
General Managers
n=21
Creating High
Performance or
Energizing Climates n=11
Creating Neutral
or Demotivating
Climates n=10
Mean Percentile of Differentiating Managerial Styles**
>66 % is considered a dominating Leadership Style
Pacesetting Visionary Coaching Affiliative Participative
48% 80% 71% 76% 71%
75% 40% 40% 41% 46%
= Statistically Significant Difference
General Managers who created high performance climates had a broader repertoire of leadership styles*
* Global Technology Organization, Hay McBer 2002
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RelationshipRelationshipManagementManagement
Leadership styles:how we interact with those we lead
Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
Self-Self-ManagementManagement
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Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
• Empathy
Visionary Style
RelationshipRelationshipManagementManagement
Self-Self-ManagementManagement
• Inspirational Leadership• Influence
• Transparency• Emotional Self-Control
Visionary Style
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Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
• Empathy
Affiliative Style
RelationshipRelationshipManagementManagement
Self-Self-ManagementManagement
• Collaboration• Emotional Self-Control
Affiliative Style
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Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
• Empathy
Participative Style
RelationshipRelationshipManagementManagement
Self-Self-ManagementManagement
• Collaboration• Conflict Management• Influence
• Emotional Self-Control• Adaptability
Participative Style
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Self-Self-AwarenessAwareness
SocialSocialAwarenessAwareness
• Empathy
Coaching Style
RelationshipRelationshipManagementManagement
Self-Self-ManagementManagement
• Influence• Developing Others
• Emotional Self-Control• Optimism
Coaching Style
Concluding Remarks
Questions
For additional information contact:◦ Agustin V. Arbulu C.◦ E mail: [email protected]◦ Phone: 248.953.1614
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