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LEADERSHIP AND THE NEW NORMAL
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ORGANIZATIONAL EFFECTIVENESS AUDIT Answer the following questions as honestly as possible using this 1-10 point scale: 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure
7 = Agree Somewhat 10 = Strongly Agree
_______ We have a clear and detailed vision for the direction of our company that is very well communicated throughout the entire organization.
_______ Every employee has clear / quantifiable / observable performance objectives.
_______ There is a high level of very open and honest communication throughout the organization.
_______ I have a high level of trust in the skills, abilities, and integrity of my co-workers.
_______ There is a high sense of urgency within the organization to get things done.
_______ We have only the best, highly competent people in all areas of the organization.
_______ We focus very intently on the needs of our customers.
_______ There is no politics, rumor-mongering or finger-pointing within our organization.
_______ Our key leaders operate as a highly-effective team.
_______ There is a high level of both personal and mutual accountability within the organization.
_______ People display a positive, enthusiastic attitude throughout the organization.
_______ We are superb at collecting and using feedback from our customers.
_______ Our organization displays great discipline in pursuing our focused business objectives.
_______ I am very pleased with where our organization is in the marketplace today.
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THE 5 ELEMENTS OF STRATEGIC THINKING
P
P
P
P
EFFECTIVE STRATEGY = VALUED DIFFERENTIATION X EXECUTION
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THE FOUR I’S
Aggressive external market focus.
Ridiculously high level of customer focus.
Keep the “Main Things” the main things.
Bullish on knowledge sharing and learning.
Teamwork is mandatory – not optional
Passion and commitment at all levels.
Foster a healthy paranoia.
Revel in change.
HOW TO AVOID THE 4 I’S
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(T + C + ECF) X DE = SUCCESS
HOW I DEFINE TALENT
Impeccable Character
Excellent Communicator
Positive Attitude
Customer Service Focused
Creative / Innovative
Strong Drive = Proactive
Solid Team Player
HIGH PERFORMANCE TEAMS:
D
M
C
C
M
D
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KEY TEAM COMPETENCIES 1-10
1. Setting clear, specific and measureable goals _______
2. Making assignments extremely clear and ensuring required competence _______
3. Using effective decision making processes within the team _______
4. Establishing accountability for high performance across the entire team _______
5. Running effective team meetings _______
6. Building strong levels of trust _______
7. Establishing open, honest and frank communications _______
8. Managing conflict effectively _______
9. Creating mutual respect and collaboration _______
10. Encouraging risk-taking and innovation _______
11. Engaging in ongoing team building activities _______
Fully engaged customers deliver a _________ premium over the average customer in terms of share of wallet, profitability, revenue, and relationship growth.
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What this chart shows: According to this global research study, by going from an average of “Somewhat Agree” to “Agree” on the Quality and Customer Relationship scores (in the eyes of the staff) the average company would more than double (104%) its financial performance! As another example: If you improve the average rating on Employee Satisfaction by 10 –15% (again going from “Somewhat Agree” to “Agree”) it will cause a 42% improvement in financial performance, including both profitability and growth.
Financial Performance
Highest Quality Products / Services
& Excellent
Customer Relationships
Employee Satisfaction
Empowerment High Standards
Long-term Orientation
Enthusiasm, Commitment,
Respect
Training & Development
Fair Compensation
CR=104.12
CR= .404
CR=.334
CR=.27
CR=.275 CR=.249
CR=.280 Coaching
CR=.285 CR=.371 CR=.365 CR=.191 CR=.247
CR = Causal Relationship
TOLERATE NOTHING LESS
Based on: “ Practice What You Preach” by Maister
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HERE IS THE LIST OF THE TOP FACTORS THAT DROVE THESE COMPANIES TO BRING IN FINANCIAL RETURNS THAT WERE OFTEN 20 TIMES LARGER THAN THEIR COMPETITORS... 1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree
_______ We have an uncompromising determination to achieve excellence in everything we do.
_______ We have a real commitment to high-quality work, and tolerate nothing less.
_______ We have a real commitment to high levels of customer service, and tolerate nothing else.
_______ In this company we set and enforce very high standards for performance.
_______ Everyone in the organization has been trained on the important of superior customer service.
_______ We keep customers informed on issues affecting their business with us.
_______ We make our customers feel as though they are very important to us.
_______ Customer satisfaction is a top priority in our company.
_______ We do consistent training on delivering the highest quality products and service possible.
_______ We listen very well to what the customer has to say.
_______ We are extremely good at building long-term customer relationships.
_______ The people in our company do “whatever it takes” to do a good job for the customer.
_______ We do a good job of resolving customer problems when they occur.
_______ We always place the customers’ interests first, even ahead of those of the company.
_______ Our employees are highly engaged in their work.
_______ Our employees take great pride in working for our organization.
READ THAT LIST AGAIN… AND AGAIN!!! THIS IS CRITICAL TO YOUR SUCCESS
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KEY ATTRIBUTES OF A WINNING CULTURE
High aspirations and a desire to win _______
Customer / market focus _______
Ownership mentality _______
Bias to action _______
Individuals who team _______
Passion and energy _______
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HOW WELL DOES YOUR ORGANIZATION STACK UP? 1= POOR 5 = AVERAGE 10 = SUPERIOR
______ Fun: people smile at work and enjoy their day and who they work with.
______ Family: people genuinely care about others and how they are doing.
______ Friends: many friends at work, sometimes a best friend.
______ Fair: people are treated with dignity and respect, their opinions matter.
______ Freedom: no micro-management, people are empowered to succeed.
______ Pride: employees are proud to tell people where they work.
______ Praise: some sort of sincere and specific praise once every 7 days.
______ Meaning: more than a pay check, employees feel like they are doing something important.
______ Results: employees feel like they are making real progress, getting key things done.
THE SIX UNIVERSAL DRIVERS OF ENGAGEMENT ______ Caring, competent, and engaging leaders.
______ Effective managers who keep employees informed, aligned and engaged.
______ Effective teamwork at ALL levels.
______ Job enrichment and professional growth.
______ Valuing employee contributions.
______ Concern for employee well being.
S B A
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DO YOUR EMPLOYEES LOOK LIKE THIS?
_______ They give more discretionary effort.
_______ They consistently exceed expectations.
_______ They take more responsibility and initiative.
_______ They receive better customer service ratings.
_______ They offer more ideas for improvement.
_______ They promote and model teamwork.
_______ They volunteer more for extra assignments.
_______ They anticipate and adapt better to change.
_______ They persist at difficult work over time.
_______ They speak well of the organization.
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THE FIVE STEPS TO IMPLEMENTING A WINNING CULTURE
1. Perform a culture audit and set new expectations. 2. Align the management team. 3. Focus on results and build accountability. 4. Communicate and celebrate.
MOST IMPORTANT LEADERSHIP SKILLS Do the leaders in your organization display these attributes? Superb communication skills _______
Lead by example to demonstrate character and competence _______
Establish and maintain clear and meaningful vision _______
Provide motivation to create ownership and accountability for results _______
Clarify performance expectations _______
Foster teamwork and collaboration _______
Develop clear performance goals and metrics _______
Consistently deliver superior results ________
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IS YOUR COMPANY UP TO SPEED? ADAPTED FROM FAST COMPANY MAGAZINE
Score your company from 1 to 10: 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure
7 = Agree Somewhat 10 = Strongly Agree
WE HAVE A STRONG EMOTIONAL BOND WITH OUR CUSTOMERS: ________ Competing strictly on price, quality, and features is the road that most companies travel—and it is the road to disaster. In a world of overcapacity, endless choice, and savvy buyers—there will always be some company that can do it a little faster, a little cheaper, or a little better than you can. Companies that prosper over the long haul don’t just offer good deals, they exude genuine affection and concern for their customers. They build strong, customer intimate relationships as trusted advisors and true business partners.
WE HAVE A UNIQUE STRATEGY THAT CLEARLY STANDS OUT: ________ You can’t do great things if you are satisfied doing things just “a little better” than your rivals. If you want to win big, you have to think differently. You must pursue strategic ideas that challenge the status quo in the industry. You must create a position that is unique, highly valuable in the marketplace, and defendable from your competition.
OUR ORGANIZATION IS A FUN PLACE TO WORK— AND A FUN ORGANIZATION TO DO BUSINESS WITH: ________ The most productive companies have an atmosphere of fun and excitement that permeates their entire culture. This does not mean people sit around and play video games and tell jokes all day long, it simply means that people smile and have fun while at work. They enjoy their work and the people they work with—and especially serving their customers.
WE ARE BUILT TO CHANGE: ________ The only certainty in business today is that some crucial elements of your strategy, the competitive landscape, your customer’s expectations, the underlying economics of your industry will be different tomorrow. That is why change itself has become a core capability in organizations that prosper over the long run. Companies that succeed—embrace, even revel in change.
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WE STRONGLY EMBRACE THE VALUE OF VALUES: ________ Today, more than ever, customers don't just ask “What products do you make?” or “What services do you offer?” they also ask “What values does your company stand for?” The company with the clearest sense of purpose, bolstered by honesty and integrity wins.
WE ARE AS DISCIPLINED AS WE ARE CREATIVE: ________ (AND AS CREATIVE AS WE ARE DISCIPLINED) Creating long-term value means delivering short-term results—every quarter, every week, every day. There is no contradiction between creativity and execution. The most innovative companies tend to be the most disciplined when it comes to making their numbers. Think outside the box, but build a strong box to stand on while doing it.
WE USE TECHNOLOGY TO CHANGE EXPECTATIONS AND RESHAPE OUR BUSINESS: ________ Every business is a technology business. Regardless of your product, service or industry—every company that hopes to survive, let alone win, must embrace technology as a fundamental driver of their business strategy. Fundamental values and core business excellence is powered by relevant (to the customer) technology.
WE ARE BUILT FOR SPEED: ________ Being fast does not mean reckless. But fast companies do understand the cost of hesitation and delay—whether responding to a customer’s complaint or launching a new product. Successful companies know that time is as valuable a resource as money or talent and treat it accordingly.
WE HAVE BUILT A COMPANY OF LEADERS: ________ There is much more to leadership than the vision and charisma of the CEO. The most effective form of leadership is grassroots leadership; the companies with the most confident and committed leaders, in all levels of the organization, are companies that win.
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THE WEB OF VALUE: VOC + MOT + WOM
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VOC + MOT Answer the following questions as honestly as possible using this 1-10 point scale: 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent
______ We have a very robust and well-developed process for capturing the VOC.
_______ We do numerous customer surveys annually.
_______ We have a “Customer Advisory Panel” that helps us understand the VOC.
_______ We meet with our top clients regularly to solicit their feedback and ideas.
_______ Everyone in our organization understands what our customers think/say is important.
_______ We clearly understand our key Moments Of Truth (MOT).
_______ Our MOT were defined specifically from the feedback of our customers.
_______ We have built very well-developed and clear processes/systems around each of our MOT.
_______ We are nearly flawless in consistently delivering our MOTs perfectly.
_______ We truly own the Voice Of the Customer (VOC).
THE KEY MOT FOR OUR BUSINESS ARE:
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WHAT ARE THREE THINGS YOU CAN DO RIGHT AWAY TO GENERATE POSITIVE
WORD OF MOUTH AND STRONG PERSONAL REFERRALS?
WOM = WORD OF MOUTH
From John Jantsch: The Referral Engine
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THE 4 + 2 FORMULA The Four Primary Management Practices 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent _______ Strategy: Devise and maintain a clearly stated, focused strategy. Whatever your strategy, it will only work if it is sharply defined, clearly communicated, and well understood by employees, customers, partners, and investors. _______ Execution: Develop and maintain flawless operational execution. Winners consistently meet the expectations of their customers by delivering on their value proposition. Bad quality, in products or service, surely will hurt. _______ Culture: Develop and maintain a performance-oriented culture. One of the best indicators of being performance-oriented is the way you deal with your own poor performers. It is easy to reward good performers. What matters is whether you have the courage to get rid of poor performers. _______ Structure: Build and maintain a fast, flexible, flat organization. What really counts is whether structure reduces bureaucracy and simplifies work. Simpler and faster - such are the best goals for all organizations. The Four Secondary Management Practices _______ Talent: Hold on to talented employees and find more. Winning organizations pay great attention to finding, growing, developing, and rewarding very talented people. _______ Leadership: Key leaders are truly committed to the business. The research data clearly showed that the leadership effectiveness of the top executives, on average, influenced 15% of the variance in corporate performance, for better or for worse! _______ Innovation: Make innovations that are industry transforming. Agile companies that were highly innovative and able to anticipate rather than react to disruptive events in the marketplace, were always the winner. _______ Partnerships: Make growth happen through winning combinations. Internally generated growth is essential, but companies that can also master partnerships, alliances, mergers, and acquisitions are much more likely to be winners in the long run.
Based on: “ What (Really) Works” by Joyce
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WHAT INHIBITS EXECUTION?
Inability to work together = poor teamwork
Company culture = tolerating mediocrity / lack of accountability
Economic climate
Holding onto the past = unwillingness to CHANGE
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DISCIPLINED EXECUTION 1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree
______ We have a clear vision for exactly where we are trying to take our organization. ______ We have a detailed and specific plan to accomplish the key objectives we are trying to execute. ______ Our senior leaders are all 100% committed to executing the key objectives. ______ The key leaders/employees in our organization are all superb at execution. ______ All of the major objectives we are pursuing are fully aligned and mutually reinforcing. ______ We have excellent systems and processes in place to ensure consistently superb execution. ______ There is continuous and transparent communication throughout he entire organization about exactly where we stand on executing on our key objectives. ______ Every employee has all of the training, support, equipment and resources they need to deliver the results required of them. ______ We are superb at adjusting and adapting our strategy and objectives when truly necessary. ______ We do a great job of celebrating both small and big wins and praising great performance. ______ We refuse to tolerate mediocrity or lack of accountability and deal decisively with people who are not able to meet the clear standards of performance in our organization.
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IBM
•Collaborative partnerships with customers.
•Drive unique value and growth through
innovation that matters.
•Invest in people.
•Leverage talent and knowledge through
trust and communication.
Charlie Trotter
•Only the best people (passion)
•Lots of communication
•Highest standards
•Innovation
•Truly delight the customer
Good to Great
•Best people
•Effective (Level 5) leaders
•Deal with difficult issues
•Focus on the main things
•Patience + discipline
Results Rule
•Tell the truth
•Pursue the best over the easiest
•Leverage the power of partnerships
•Focus on the main things
•Accountability
•Constant improvement
Microsoft
•Best people
•Bet the company
•Require failure
•Managers are qualified
•Performance is what counts
•Money where it is important
•Stop the insanity
Spence: 6 Ways to Run or Ruin
1. Clear Vision
2. Robust Communication
3. Culture of Urgency
4. Disciplined Execution
5. Best People
6. Focus on the Customer
4+2 Formula
•Clear, focused strategy
•Flawless execution
•Performance-oriented culture
•Fast, flexible, flat organization
-Best people
-Committed leaders
-Innovation
-Growth through partnerships
Top Concerns of 700 CEOs
1. Have not communicated my vision
2. Do not discuss the tough stuff
3. Do not have the best people in key
positions
4. Lack of disciplined execution
Philly Gear
•Best people
•Transparency
•Customer focus
•Sell value
•Have FUN
Skinner Nurseries
•Own the word service
•Best people
•Lots of communication
•Know your business
•Have a plan
•Sell value
Small Giants
•Independent vision
•Strong Relationships
-employees
-customers
-community
•Caring workplace
•Flexible structure
•Passionate
Think Big - Act Small
•Stewardship
•Transparency
•Accessibility
•Stand for something
•Erase superficial distinctions
In Search of Excellence
•A bias for action
•Close to customer
•Intra-preneurship
•Values driven
•Focus on core competencies
•Simple structure
•Minimal bureaucracy
Top 7 CEOs
•Customer focus
•Passion for the job
•Culture counts
•Constant innovation
•Learn from the best
Tough Management
•Communicate clearly
•Force the hard decisions
•Focus on results
•Remain flexible
•Prove your value to the company
•Force collaboration
•Be a tough manager / not a tough
guy
Toyota Way
•Clear and compelling vision
•Constant improvement (Kiazen)
•Go to the source (Genchi Genbutsu)
•Respect and mutual accountability
•Teamwork
Kiss Theory Goodbye
•Superior leadership
•Sales effectiveness
•Flawless operational execution
•Superb financial management
•Customer loyalty
Ram Charan: Know How
•Position / Reposition the business to
make money
•Pinpoint patterns and change - then take
action
•Build a strong culture of excellence
•Hire the best people - build them into
leaders
•Build a TEAM of leaders
•Set the right goals - then FOCUS on key
priorities
The Six Secrets of Change
1. Love your employees
2. Connect meaning to the work
3. Invest in your people
4. Learning/innovation IS the work
5. Transparency rules
6. Create learning systems
Firms of Endearment
Meaningful work
Partnerships with all stakeholders
Respect for individuals
Transparency
Teambuilding
Empowerment
Fun work environment
Support for life balance
Training and development are high
priorities
Recognition and celebration have a high
priority
Mavericks at Work
Value-based differentiation
Transparency + knowledge sharing
Bond with customers
Talent + culture
Mastering the Rockefeller Habits
Right people doing the right things right
Clear focused one-page strategic plan
Strong core values.
Organizational alignment and focus
Relentless and consistent communication
of the theme.
Transparency and openness to employee
feedback.
Key executives highly aware of the
business.
Deliver the brand promise and truly
delight customers.
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WORKSHOP: IDEAS INTO ACTION Go back page-by-page and carefully look back through the entire workbook. Compare and contrast your scores on the various audits and re-read any notes you wrote. What are the themes that emerge… the
patterns? Look for any scores below a 7 as an area that needs improvement and anything in the 1-4 range
as a serious problem that needs attention. The goal here is to really dig into these topics so you can take an honest look at the actual current state of your organization. This is a rare opportunity to take a critical
look at how well your organization is truly operating and specifically what must be done to improve it. Take this exercise very seriously and push yourself to really understand what these scores and everything you
learned today about world-class organizations and controlling the market could mean to your business.
Here are three major questions to keep in mind:
1. Strengths What was the pattern of high scores? In what major areas did you seem to have as strengths, where you scored an 8 or higher across all of the workshops? 2. Weaknesses What was the pattern of low scores? In what major areas did you seem to have as weaknesses, where you scored a 6 or lower across all of the workshops?
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3. Key Strategies for Success Based on everything you have learned here today and your own personal business experience, what are the 4—6 most important ideas that will drive your organization’s ability to control the market? (Please describe these in detail. You might lead off with a single word or short phrase, but then you’ll need to give a definition and description to exactly what you mean. It must be clear precisely what each ideas means and how you will pursue it.)
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4. Action Steps Based on the list you just created, as well as the strengths and weaknesses you identified please list at least 4 specific, measurable, and observable action steps that can be done right away to take the lessons of this class and put them into positive action for your organization?
1. 2. 3. 4.
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NOTES:
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NOTES:
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NOTES:
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NOTES:
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BEING HONEST Honesty was selected more often than any other leadership characteristic; it consistently emerged as the single most important ingredient in the leader-constituent relationship. That nearly 90% of the respondents want their leaders to be honest above all else is a message that all leaders must take to heart. Just how do constituents measure honesty? By observing the leader’s behavior. In other words, regardless of what leaders say about their own integrity, people wait to be shown; they watch and observe carefully. Consistency between word and deed is how we judge someone to be honest. Honesty is also related to values and ethics. We appreciate people who take a stand on important principles. We resolutely refuse to follow those who lack confidence in their own beliefs. Confusion over where the leader stands creates stress; not knowing the leader’s beliefs contributes to conflict, indecision, and political rivalry. We simply don’t trust people who won’t tell us their values, ethics and standards. Even worse, though, is someone who tells us they hold a certain value – then acts in complete disagreement with that value.
THE LEADERSHIP CHALLENGE KOUZES & POSNER
JOSSEY-BASS
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BEING FORWARD-LOOKING We expect our leaders to have a sense of direction and a concern for the future of the organization. Leaders must know where they are going if they expect others to willingly join them on the journey. In a separate study of 300 senior executives, “a leadership style of honesty and integrity” and “a long-term vision and direction for the company” were ranked as the number one and two most important characteristics in a successful leader. In a joint study with Columbia University, 98% of the respondents (8,500) ranked “the ability to convey a strong vision of the future” as a very important quality for effective leaders. We want to know what the organization will look like, feel like, be like when it arrives at its goal in six months or six years. We want to have it described to us in rich detail so that we’ll know when we’ve arrived and so that we can select the proper route for getting there.
BEING INSPIRING We also expect our leaders to be enthusiastic, energetic, and positive about the future It’s not enough for a leader to have a dream about the future. A leader must be able to communicate the vision in ways that encourage us to sign on for the duration. Some react with discomfort to the idea that being inspiring is an essential leadership quality. In the final analysis, though, leaders must inspire our confidence in the validity of the goal. Enthusiasm and excitement are essential and signal the leader’s personal commitment to pursuing that goal. If a leader displays no passion for a cause, why should anyone else?
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BEING COMPETENT To enlist in another’s cause, we must believe that the person is competent to guide us where we are headed. We must see the leader as capable and effective. Leadership competency doesn’t necessarily refer to the leader’s abilities in the core technology of the operation. In fact, the type of competence demanded is value-added competence. Functional competence may be necessary, but it’s insufficient; the leader must bring some added value to the position. Expertise in leadership skills themselves is another dimension of competence.
PUTTING IT ALL TOGETHER What we found in our investigation of admired leadership
qualities is that, more than anything, we want leaders who are credible. We must believe that their word can be trusted, that
they’ll do what they say, that they’re personally excited and
enthusiastic about the direction in which we’re headed, and that they have the knowledge and skill to lead.
THE FIVE FUNDAMENTAL PRACTICES OF EXEMPLARY LEADERSHIP As we looked deeper into the dynamic process of leadership, through case analysis and survey questionnaires, we uncovered five fundamental practices that enable leaders to get extraordinary things done. The best leaders in the world are able to: Challenge the process
Inspire a shared vision
Enable others to act
Model the way
Encourage the heart
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CHALLENGE THE PROCESS Those who lead others to greatness seek and accept challenge. They are pioneers – people willing to step out into the unknown. They are willing to take risks, to innovate and experiment in order to find new ways of doing things. But leaders need not always be the creators or originators of new products, services or processes. In fact, it’s just as likely that they’re not. Product and service innovations tend to come from customers, clients, vendors, people in the labs and people on the front lines, while process innovations tend to come from the people doing the work. The leader’s primary contribution is in the recognition of good ideas, the support of those ideas and the willingness to challenge the system in order to get new products, processes, services and systems adopted.
INSPIRE A SHARED VISION Leaders have a desire to make something happen, to change the way things are, to create something that no one else has created before. In some ways, leaders live their lives backward. They see pictures in their mind’s eye of what the results will look like even before they have started the project. Their clear image of the future pulls them, and their people, forward. People must believe that leaders understand and have their best interests at heart. Only through intimate knowledge of their dreams, their hopes, their aspirations, their visions, their values is the leader able to enlist support. Leadership is a dialogue – not a monologue.
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ENABLE OTHERS TO ACT Leadership is a team effort. After reviewing more than 2,500 “personal-best” cases, we developed a simple test to detect whether someone is on the road to becoming a leader. That test is the frequency of the use of the word – “We.” Leaders enable others to act. They know that no one does his or her best when feeling weak, incompetent or alienated; they know that those who are expected to produce the results must feel a sense of ownership. Leaders involve, in some way, all those who must live with the results, and they make it possible for others to do well. Leadership is a relationship built on trust and confidence. Without trust and confidence, people don’t take risks. Without risks, there’s no change. Without change, organizations die.
MODELING THE WAY Leaders go first. They set an example and build commitment through simple, daily acts that create progress and momentum. Leaders model the way through personal example and dedicated execution. Leaders need operational plans. They must steer projects along a predetermined course, and take corrective action. Yet the personal-best cases we examined included very little about grand strategic plans and massive organizational changes; they sounded more like action—adventure stories. They were about the power of little things piled one on top of the other until they added up to something really big. Concentrating on small wins, leaders build confidence that even the biggest challenges can be successfully met.
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ENCOURAGE THE HEART The climb to the top is arduous and long. People become exhausted, frustrated and disenchanted. They are often tempted to give up. Leaders encourage the heart to carry on. It is part of the leader’s job to show people that they can win. Encouragement is curiously serious business. It’s how leaders visibly and behaviorally link rewards with performance. When striving to raise quality, recover from disaster, start up a new service, or make a dramatic change of any kind, leaders make sure people benefit when behavior is aligned with cherished values.
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Based on an in-depth diagnosis of more than 3,000 organizations to assess their strategic architecture (vision, strategy, structure, information feedback and control systems, reward systems); their culture and functional areas (marketing and sales, operations, HR, and financial); and a variety of key outcomes (revenue, profit, community image, morale, turnover, etc.) The diagnosis regularly reveals problems in six specific areas where “responsibility” in the organization is rated low.
CREATING A CLEAR, MEANINGFUL SENSE OF DIRECTION People want to know where they are heading. A clear understanding of the organization’s vision, mission, goals and strategy not only gives people comfort; it lets them share in the excitement of the journey. It gives them a context for their own decisions and lets them be creative contributors. Within this framework, employees can contribute their own solutions and use their own common sense, experience, skills and judgment, and they can take pride in their contributions. The tools to communicate direction include: A clear statement of purpose and core values.
An inspiring and specific vision of an exciting future.
A focused set of strategic initiatives that we follow to achieve
the vision in the shorter term (1-3 years). Processes and documents that communicate the vision,
strategies and goals and translate them into meaningful,
concrete terms for those who will make them happen.
RESPONSIBLE MANAGEMENT GETS RESULTS Faust, Lules, Phillips
AMACOM
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HAVING AND LIVING BY VALUES PEOPLE RESPECT Core values may drive a company’s strategy and decisions and may be major determiners of its success. But they are not the only values by which companies are judged. There are a number of other values, real or imagined, long-term or short-term, that affect whether people will choose to be responsible to a given organization. Most people believe that a person’s or company’s behavior is in some way reflective of their values. Human beings have a very strong tendency to read intent into behavior. Employees regularly infer the values of the organization from the behavior of its leaders.
RESPECTING PEOPLE AND THEIR CONTRIBUTION People want to work in an environment where they and their contributions are respected. When there is no respect, each day is demeaning. There is little sense of self-worth and contribution. Confident, optimistic, capable people will not stay in an environment that offers little respect.
HAVING A COMPATIBLE CULTURE The culture of an organization is the embodiment of its true values and philosophy. It is expressed in the typical behavior of its employees and its policies, procedures, systems, structures, decisions, and day-to-day actions. Employees need to feel compatible and comfortable with the corporate culture.
BEING A SOURCE OF PRIDE People like to take pride in their organization. Motivation increases naturally as people see their organization doing things they believe will make it more successful. The reciprocal is also true; people lose all motivation when they witness their organization behaving in ways that are contradictory to stated values, goals or strategies.
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TRUE NORTH BILL GEORGE
JOSSEY-BASS 2007 A dramatic shift is taking place in the caliber and character of new leaders. These leaders recognize that leadership is not about their success or about getting loyal subordinates to follow them. They know that the key to a successful organization is having empowered leaders at all levels, including those that have no direct reports. We call these leaders “authentic leaders.” Authentic leaders do not only inspire those around them, they empower them to step up and lead. Thus we offer a new definition of leadership: the authentic leader brings people together around shared purpose and empowers them to step up and lead authentically in order to create value for all stakeholders.
There are five dimensions of an authentic leader:
1. PURSUING PURPOSE WITH PASSION Most people struggle to understand the purpose of their leadership. In order to find their purpose, authentic leaders must first understand themselves and their passions. In turn their passion shows the way to the purpose of their leadership.
2. PRACTICING SOLID VALUES Leaders are defined by their values, and their values are personal -- they cannot be determined by anyone else. Integrity, however, is the one value required of every authentic leader. If you do not have integrity, no one will trust you, nor should they. The values of an authentic leader are shaped by their personal beliefs and developed through study, introspection, consultation with others, and years of experience. The test of an authentic leaders' values is not what they say but the values they practice under pressure.
3. LEADING WITH HEART Authentic leaders lead with their hearts as well as their heads. To some, leading with the heart may sound soft, as though the authentic leaders cannot make tough choices involving pain and loss. Leading with heart is anything but soft. It means having passion for your work, compassion for the people you serve, empathy for the people you work with, and the courage to make difficult decisions. Courage is an especially important quality for leaders as they navigate through unpredictable terrain.
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4. ESTABLISHING ENDURING RELATIONSHIPS The ability to develop enduring relationships is an essential mark of authentic leaders. People today demand personal relationships with their leaders before they will give themselves fully to their jobs. They insist on access to their leaders, knowing that trust and commitment are built on the openness and depth of relationship with their leaders. In return, people will demonstrate great commitment to their work and loyalty of the company.
5. DEMONSTRATING SELF-DISCIPLINE Authentic leaders know competing successfully takes a consistently high level of self-discipline in order to produce results. They set high standards for themselves and expect the same from others. This requires accepting full responsibility for outcomes and holding others accountable for their performance. When leaders fall short, it is equally important to admit their mistakes and initiate immediate corrective action. Self-discipline should be reflected in their personal lives as well, because without personal self-discipline it is not possible to sustain self-discipline at work. In summary, authentic leaders genuinely desire to serve others through their leadership. They are more interested in empowering the people they lead to make a difference than they are in power, money, or prestige for themselves. They are as guided by qualities of the heart, by passion and compassion, as they are by qualities of the mind. They lead with purpose, meaning, and values. They build enduring relationships with people. Others follow them because they know where they stand. They are consistent and self-disciplined. When their principles are tested, they refused to compromise. Authentic leaders are dedicated to developing themselves because they know that becoming a leader takes a lifetime of personal growth.
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A BRIEFING FOR LEADERS DILENSCHNEIDER HARPER BUSINESS
HOW A LEADER SETS DIRECTION Create a strong vision
Articulate a clear course
Bias the organization toward action
Lift up the organization
Practice excellent personal communications
Earn conviction
Sustain the vision
Create unity of purpose
Leverage the strength of the culture
Support positive rituals
Harmonize vision and culture
Train people to focus
THE FIVE VALUES OF A STRONG CORPORATE CULTURE
1. Integrity: be a living example of your leadership values
2. Accountability: do what you say you will do—build trust through personal responsibility
3. Diligence: work hard, set a good pace, complete projects on or before deadlines
4. Perseverance: overcome obstacles while maintaining a positive and enthusiastic attitude
5. Discipline: do all of these things, every single day
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PERSONAL LEADERSHIP COMPETENCY MODEL Based on the presentation and all of the materials you have read, please create a detailed outline of your own “personal leadership competency model.” What are the specific skills, abilities, and attitudes you feel you must have in order to become the sort of leader you aspire to be? Please be as precise as possible, listing measurable and observable behaviors whenever possible. I am not looking for just a few bullet points here, I want you to give this some serious thought and describe in clear detail what your personal leadership philosophy is built upon. What are the most essential things you need to do every day to be a living example of an excellent leader? Look back over the reading, study the notes you took from the presentation, think about great leaders and poor leaders who have worked with in your life — and develop a very clear, vivid and specific description of exactly what your leadership philosophy is and what you feel you must do every day to be an effective and successful leader.
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