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ExcellenceL E A D E R S H I P

THE MAGAZINE OF LEADERSHIP DEVELOPMENT, MANAGERIAL EFFECTIVENESS, AND ORGANIZATIONAL PRODUCTIVITY

AUGUST 2011

IIddeennttiittyyIIddeennttiittyyLLeeaaddeerrsshhiippLLeeaaddeerrsshhiipp

NNeeuurrooLLeeaaddeerrsshhiippNNeeuurrooLLeeaaddeerrsshhiippAddress the Social BrainAddress the Social Brain

David RockLeadership Consultant

“Leadership Excellence is an exceptionalway to learn and then apply the best and latest ideas in the field of leadership.”

—WARREN BENNIS, AUTHOR ANDUSC PROFESSOR OF MANAGEMENT

ExecutionExecutionSSttrraatteeggyySSttrraatteeggyy

ExcellenceL E A D E R S H I P

THE MAGAZINE OF LEADERSHIP DEVELOPMENT, MANAGERIAL EFFECTIVENESS, AND ORGANIZATIONAL PRODUCTIVITY

JOY STROUD RUHMANN

Strategy ExecutionStart making this yourcore competency. . . . . . . 3

ANDREW BLUM

Breakthrough StrategyRecognize how emotionsinfluence decisions. . . . . . .4

JANE JORDAN-MEIER

Crisis ManagementBecome highly effectivein the four stages. . . . . . . . 4

ISAAC GETZ

Leader of theFree CultureYou can make the idealyour cultural reality. . . . . .5

JEAN KELLEY

Are You Leader Material?Start playing the game. . . .6

JOHN ANDERSON ANDMARC MICHAELSON

Smart SkillsWith these, you canlead without a title. . . . . . .7

MARSHALL GOLDSMITH

Leadership IdentityFour sources combine toinfluence your mojo. . . . . 8

HARLAN STEINBAUM

7 Universal PrinciplesUse these to maketough leadership calls. . . . 9

WENDY AXELRODAND JEANNIE COYLE

Grow Your TalentDevelop people via work. .10

DAVID ROCK

NeuroLeadershipApply social qualities. . . .11

BARACK OBAMA

Power of PrinciplesUnity builds strength. . . .12

SUE TODD

Get Leaders TeachingEnjoy the benefits. . . . . . 13

CHRISTINA BALDWIN

AND ANN LINNEA

The Circle WayPut leaders in all chairs. .14

STEPHEN R. COVEY

Five ChoicesThese empower you. . . . .14

OWEN SULLIVAN

Global LeadersWhy they win or fail. . . .15

BILL BAKER

Storyteller-in-Chief. . .15

MARC BLUMENTHAL

Reinvent SuccessionLeverage technology. . . . .16

JEFFREY COHNAND JAY MORAN

Choosing LeadersKnow what to look for. . .17

DAVID DEFILIPPO ANDSTEVE ARNESON

Building LD ProgramsPay attention to detail. . .18

RANDY GORUK

Gain a Leader’s EdgeDevelop competencies. . .18

JENNIFER PROSEK

Jumpstart Growth . . . .19

TONY SCHWARTZ

Energy EngagementCreate innovative culture. .20

VOL. 28 NO. 8 THE GLOBAL LEADERSHIP DEVELOPMENT RESOURCE AUGUST 2011

Schedule the Big Rocks

As leaders surveythe landscape fromthe high and sacred

place of petro-glyphs, they givethanks for their

blessings and prayfor success.

EVEN AS I SEARCH FOR THE500 best LD programs (to

be featured in October LE,along with the program directors and 50 bestpractices), I’m reminded of the downside risksof having any program, process, or para-digm for developing leaders. These include:

AArree LLeeaaddeerrsshhiipp PPrrooggrraammss SSeeeenn aass UUnnffaaiirr??Programs to identify and develop certain

employees for leadership positions are seenas “unfair and political by 25 percent of work-ers, and 27 percent see them as flawed butwell intentioned,” said Sandi Edwards, SVPfor AMA Enterprise, a division of AMA.“Only 12 percent consider efforts toidentity and develop future leadersas impartial and even-handed (37 per-cent have little idea how LD pro-grams are perceived by employees).”

One reason for perceived unfairnessis the selectivity of LD programs,says Edwards. “Organizations limitwho may apply—and who areselected—for leadership develop-ment. Many may be called, but few are chosen.Or, not everyone is eligible for participationgiven roles and responsibilities. So somejealousy forms. At the core of effective TMis a shared sense of openness and fairness. Leteveryone know the program criteria andthat others might be selected in the future.Keeping open the door of opportunity iskey to holding onto good workers. If a per-son doesn’t make the cut for entry to a pro-gram, point out that the chance will comeup again.” (Contact: Arlene Bein,abein@amanet.org).

DDoo LLDD PPrrooggrraammss FFaaiill ttoo BBoooosstt EEnnggaaggeemmeenntt??Employee engagement is the top HR chal-

lenge, according to a survey conducted bySHRM and commissioned by Globoforce: 69percent of HR pros cite Engagement as the topchallenge, 63 percent note employee retention,53 percent say recruitment, and 51 percentsay managing the culture. Is LD an answer?

The survey also shows that recognition iskey to engagement—80 percent of HR prossay they have a recognition program, but 87percent don’t track the ROI of such programs,said Evren Esen, manager, Survey ResearchCenter at SHRM. HR pros rank the most

common recognition areas as follows: yearsof service (58 percent); going above and beyondwith an unexpected work project (48 percent);successful performance results related to thefinancial bottom-line (43 percent); exemplarybehavior that aligns with values (37 percent);completion of regular work projects with high-quality results (9 percent). Methods used totrack engagement reflect the practical: exitinterviews (71 percent); retention rate (65 per-cent); engagement surveys/analysis (43 percent).One in 10 now track employee social media com-ments about the organization to keep tabs onengagement. Does your LD program boostengagement, recognition and retention? Visitwww.shrm.org/surveys.

IIss LLDD BBeeccoommiinngg CCoommiiccaall??With the mandate to develop

leaders in fun and entertaining ways,are some directors selling out?Franco Arda, CEO of SmarterComics,has adapted bestselling businessbooks into comics. Arda impartskeys to leaders without boring themwith dull, lifeless text. “In less thanan hour, these books will help youbecome more successful,” says

Arda. “We aim to entertain and empower. Weabsorb visual information better then text.Why not embrace that for business purposes?”

Through a series of vibrant comic books,you can now get smarter while having fun.Current titles include Think & Grow Rich byNapoleon Hill. Visit www.smartercomics.com.

IIss LLDD BBeeccoommiinngg MMoorree MMaatteerriiaalliissttiicc??Materialistic development focuses on the

financial and lifestyle gain people may getfrom their personal and leadership develop-ment. Do some LD programs promote mate-rialism? I’ve seen such a focus, especially inthe multi-level marketing arena, includingthe Success programs being run by VideoPlus (Stuart Johnson and Darren Hardy), andthe new program being developed by SendOut Cards (Kody Bateman and Craig Case)wherein participants start with a dreamboard.

One antidote to these poisonous practicesis found in the newly released Outwittingthe Devil by Napoleon Hill (with SharonLechter annotation). In these times, youwould do well to head to the Hill and learnfrom “the devil” himself. LE

From unfa i r, to comical , to mater ia l i s t i c .

by Ken Shelton

Volume 28 Issue 8

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Dark Side of LD Programs

E . D . I . T . O . R ’ S N . O . T . E

2 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

Editor since 1984

Napoleon Hill

ing the strategic plan, effectively dri-ving it down to those individuals mostresponsible for execution—mid-man-agers and front-line employees.

This is only possible when leadersrevamp the manager/employee relation-ship. First, ensure that both managersand employees have a clear line of sightbetween their day-to-day activities andthe strategic initiatives. Second, man-agers and employees must be far moreproactive in managing performance,meeting often to evaluate progress andmaking timely course corrections.

Many leaders use traditional annualperformance appraisals, which managersand employees alike find difficult andoften fail to complete in a timely man-ner, if at all. Most performance appraisalsare one-sided and backward-focused,and rarely address the issues key toachieving goals. When surveyed about

their most disliked tasks, managersrank conducting performance appraisalssecond only to terminating employees.Clearly, there’s a better way.

With strategic execution management,the focus is on the manager, employee,and how employees contribute to long-term goals. They are the individualswho will ultimately complete the tasksthat result in the execution of the plan.

When we operationalize the strate-gic plan, managers and employees canrelate to a set of annual initiatives anduse them to define what they will do todirectly contribute. This creates alignmentbetween the daily activities of employ-ees and managers, giving them a clearline of sight between what they do and howit contributes to success. This leads to ahigher engagement as employees feelthey are an integral part of the success.

EEffffeeccttiivvee EExxeeccuuttiioonnThis is where we break through the

strexecution point and begin the threephases of effective execution:

Strategy Execution

FOR YEARS, COMPANIEShave invested big

resources in strategicplanning. Sadly, for many, the processis thwarted by failure to properly exe-cute. Making strategy execution a corecompetency is vital to your success.

Typically leaders are responsible tocreate the strategic plan. Yet, it is theduty of managers and employees toexecute and make the right thingshappen. And that’s where the break-down often occurs. Given the waymanagers and employees typicallywork together, those most responsiblefor execution are rarely clear abouthow what they do impacts the strate-gic direction, thus hindering execution.

FFoouurr CCoorree PPllaannnniinngg EElleemmeennttssI see four core elements in creating a

clear and inspiring strategic plan:• Assessing. The top team starts by

assessing the culture and business envi-ronment. This should include a culturesurvey, employee engagement survey,or a Strengths, Weaknesses, Opportunitiesand Threats (SWOT) analysis to pro-vide insight into what is happening inthe company, industry. With this infor-mation, the team is armed with thedata necessary to effectively plan.• Defining. In this stage, the team out-

lines its purpose, mission, and core valuesrequired to drive performance.• Futuring. In this stage, the team cre-

ates an extended outlook of where theorganization is headed, molding thevision of what they want to build.• Planning. Finally, the team works to-

ward short-term goals and determineswhat key initiatives must occur duringthe current or upcoming fiscal years inorder to fulfill its mission and vision.

Then the breakdown occurs. As theorganization hits the strexecution point—the gap between strategy and execution—where the excellent planning ofmanagement is eclipsed by theurgency of day-to-day crises-basedactivities that cripple implementation.

BBeeyyoonndd tthhee SSttrreexxeeccuuttiioonn PPooiinnttThe key to breaking through the

strexecution point lies in operationaliz-

• Executing. When individual goalsare tied directly to annual initiatives,employees focus their energy on thethings that bring the most value.• Monitoring and evaluating. Managers

and employees should set up and con-duct bimonthly progress meetings andprepare for these forward-focused,two-way conversations. Both shouldcomplete an evaluation of employees’performance against their primaryresponsibilities and key goals to ensurethat they have a voice in the feedback.When a disconnect between how employ-ees see their performance and how a man-ager rates their performance occurs, moremeaningful conversations can occur andcourse corrections can be made proactively.

Once employees have defined theirroles and how they will contribute tothe plan, reports are generated and usedby management to determine wherethings stand compared to the plan.This provides them with informationto make appropriate adjustments at theemployee, department or organization-al level, to ensure execution of the plan.

The core values, defined in strategicplanning, are created to drive the cul-ture. For example, to fulfill a mission ofbeing customer-driven, you need to cre-ate a customer-focused culture, whereemployees personify excellence andaccountability. Often, core values soundlike platitudes and never make it beyonda poster, placard, or a laminated card.

For core values to drive the culture,they must be created as behavioralexpectations that get to the heart of cus-tomer and employee interactions andbehaviors. They can then be part of thebimonthly meeting discussion.

When managers and employees arerating performance against the core values(behavioral expectations), they have twooptions: meeting expectations or missingexpectations. If there’s a gap betweenhow employees feel they are performing andhow the manager views their performance,we again can engage in a powerful dia-logue that leads to proactive change.• Rewarding performance. Today you

need to retain your top talent throughfull employee engagement and rewardsconsistent with their contribution. Peopleneed and want to know what they domatters. Provide frequent and effective feed-back that keeps them focused on goals.

Strategic execution management leadsto better results and creates more en-gaged people willing to expend morediscretionary energy to achieve goals. LE

Joy Stroud Ruhmann, President of Level Up Leadership, worksto implement cultural transformation and strategic executiontools. Visit www.levelupleadership.com.

ACTION: Break through the strexecution point.

by Joy Stroud Ruhmann

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 3

MANAGEMENT EXECUTION

M a k e i t y o u r c o r e c o m p e t e n c y .

vertible fact: the stock market in 2011 hasbeen volatile. No one would debate this.Yet in openly exploring the implica-tions of this fact, we may discover newideas and directions. The process startswith three simple questions:

Q1: Is this fact valid? Answer: By allobjective accounts and measures, yes.

Q2: How do we react when this factguides our thinking? Answer: We getcautious. We assume there’ll be manyunknowns in the future. We begin tolose confidence in the accuracy of ourforecasts. We decide it is unwise to makelarge capital investments. We mightbegin making up rules or guidelines ofwhat we should and should not do in avolatile market environment.

Q3: What would we do if we sus-pended belief in this fact? Answer: Withpermission and space to consider a dif-ferent reality, new ideas and actions canemerge. In this case, we might see thatour forecasts already take into accountthe recent volatility, so we can spendless time questioning them. We mightnotice that our emphasis of volatilityhas created fear and stress that is moredisruptive than the volatility itself. Wemight begin to think about large capi-tal investments knowing that the likely

conservatism of our competi-tors will lead them away fromsuch investments—when webegan to explore that possibili-ty, we might find ourselvessuddenly looking at otherways to leapfrog our competi-tors through other invest-ments.

When this flow of possibil-ity-based exploration starts, break-throughs occur. This flow starts withhonest inquiry. We become aware of thelimitations or barriers that we accept,put them under the light of inquirywhere most prove less powerful, andinterrupt the patterns that emerge fromcontracted thinking.

Almost every breakthrough is charac-terized at some level by an innovator’ssuspension of belief, by exploringactions that would only be available ifthe accepted facts weren’t accepted.

When we don’t question what appearto be clear facts, we get McKinsey &Company’s 1980 study for AT&T thatsaw no great future for cell phones!Socrates really was thinking big whenhe said, “The unexamined life is notworth living.” Likewise, the unexam-ined fact is not worth accepting. LE

Andrew Blum is Managing Partner of The Trium Group andpast leader at Towers Perrin and the U.S. Marine Corps. Visitwww.triumgroup.com or email info@triumgroup.com.

ACTION: Question your way to new opportunities.

Breakthrough Strategy

FROM THE DEVASTATINGearthquake in Japan,

to revolutions in Egyptand Libya, to the oil spill in the Gulf ofMexico, social media has revealed itspower, saving lives, providing vital up-dates, and raising money. Crisis man-agement plans are flawed, incomplete,and inadequate without a social mediaplan. Twitter breaks news, is the newpolice scanner, and provides valuablereal-time intelligence for updates in acrisis. Facebook allows organizations toengage directly with its stakeholders,and YouTube allows organizations to betheir own broadcasters. Leaders whoignore these social media do so at theirperil. By following simple rules andunderstanding the four predictable stagesof news reporting in a crisis, they caneffectively manage image/reputation:

Stage 1: Fact-finding. The spotlightis beaming squarely on the triggeringevent. This is the breaking news stage.

Stage 2: Unfolding drama. The spot-light moves from the incident to theresponse and the victims. This is the rep-utation-forming stage where the rallyingon social media sites, both negativeand positive, becomes a focal point.

Stage 3: Blame game. Everyone hasan opinion; your crisis is beamedeverywhere. People want to knowwho is to blame and why, making thisthe finger-pointing stage.

Stage 4: Resolution. This marks theend of the crisis, but the spotlight canbe turned to full glare again if you slipup or something similar happens else-where. In this fallout stage, try to gainclosure with an event that demon-strates solutions and lessons learned.

This approach also enables leadersto make effective decisions about whois the best spokesperson (this is not al-ways the CEO, particularly at Stage 1).Frontline employees are often betterinformed and closer to the action. Theyneed to be empowered, not shut downin a crisis. The Stages method also aidseffective messaging—what to say when,and planning—what to do when. LE

Jane Jordan-Meier is a media and crisis management expert andauthor of The Four Highly Effective Stages of Crisis Manage-ment (CRC Press/Taylor&Francis Group). www.janejordan.net

ACTION: Master these four stages of crisis.

When the answer is the question.

IT’S TIME TO MOVE BE-yond hypothesis-driven

analysis, long a leader’sprimary tool for evaluating opportunities,advancing strategies, and pursuing inno-vation, as it now limits how leaders act.

When a team is tasked to analyzesomething—for example, a marketopportunity for a new technology—itis routinely done with an ingoing hy-pothesis and a senior-level request to proveor disprove the hypothesis. Big surprise:the team finds data to prove the hypothesisthat was designed to be proven since theanalysis was never a true exploration—only a justification exercise meant tomake an intuitive or emotional deci-sion appear rational and data-driven.

Leaders don’t need to stop makingintuitive or emotional decisions—these experience-based decisionsoften serve them well—butthey need to acknowledgethem as such, and be honestabout the difference betweenjustification-based analysisand true exploration and useeach more thoughtfully.

When the ultimate aim isto drive some breakthroughor game-changing idea, youmust adopt an approach that’s based onasking questions and exploring howhuman emotion influences decision-mak-ing. Breakthroughs require capabilityin managing the limits and barriers weunconsciously create.

Through our work in transforma-tional strategy and innovation, I’veobserved that organizations that cre-ate breakthroughs have courage andprocess to question known facts and toexplore seemingly obvious barriers—and they do this with full integrity.

To do this with your team, you needa structured process of asking simple ques-tions about core facts—not to prove themuntrue, but rather to explore and movebeyond the limits that emerge whenthose facts become givens. This makespeople aware of unconsciously invent-ed limitations—and ensures explo-ration doesn’t begin in vain with anartificially narrowed frame of inquiry.

To make sense of this BreakthroughInquiry Process, let’s use an incontro-

4 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

Crisis ManagementMaster four highly effective stages.

PERFORMANCE EXPLORATION MANAGEMENT CRISIS

by Jane Jordan-Meierby Andrew Blum

in W. L. Gore or Avis, later joined bySouthwest Airlines, SEMCO, and Ideo.The problem, however, is that mostattempts to build or imitate such organiza-tions have failed. Hence the key questionwe asked: How can these superior freecultures displace bureaucracy in morecompanies? The answer—a liberatingleadership style—enables building a cul-ture with complete freedom andresponsibility of action. Here are thefour steps of liberating leadership:

1. Stop telling and start listening.When subordinates come with a prob-lem, ask: “What do you propose?”rather than telling them what to do.Then, remove all practices that preventpeople from feeling intrinsically equal—this will end the bureaucracy.

2. Start sharing your vision openlyand actively so that people will own it.But don’t do this before Step 1, since

people who are not treated as equalswon’t embrace your vision as their own.

3. Stop trying to motivate people.Build an environment that allows peo-ple to grow and self-direct—and letthem motivate themselves. If they under-stand the vision from Step 2, theiractions will benefit the company:Freedom isn’t anarchy but self-discipline.

4. Stay alert. To maintain freedom,become the culture-keeper. In this role,as liberating leader Bob Davids of SeaSmoke Cellars says, “one drop of urinein the soup is too much—and you can’tget it out.” Freedom requires vigilance.

OOnnee FFrreeee--CCuullttuurree LLeeaaddeerrOnce General Robert McDermott

became the incoming CEO of USAA—then a 3,000 employee moribund SanAntonio-based car insurer for militaryofficers, it didn’t take him long to dis-cover the crippling bureaucracy. To bustit, he didn’t start giving orders—he lis-tened. “All services are delivered at thefront line. I couldn’t make all decisions.

Leader of the Free Culture

IF BUREAUCRACY IS SObad for performance,

why stop just at stream-lining? Why not get rid of it completely?Many leaders argue that a real organi-zation is impossible without somebureaucracy. Like barnacles draggingon a boat and yet inevitable, bureau-cracy is an inevitable cost of running acompany and coordinating its activities.

Truman mused about Eisenhowertaking over the president’s office, issu-ing orders only to discover that nothinggets done in the bureaucratic swamp. ButTruman underestimated him. Ike real-ized the bureaucracy problem on dayone when an assistant handed him asealed envelope: he promptly changedthis time-wasting procedure. Later, heasked for memos to be kept to onepage and summarized letters fromcongress into mere one-liners. Hesigned only with initials to save time.Yet, despite these streamlining measures,Eisenhower still kept the bureaucracy.

Some leaders view bureaucracyfrom a different angle. To them it is theepitome of how people who take ini-tiative to advance the company—thebest people—stop trying and either getdepressed or leave. In large organiza-tions, this cost on people may not be feltimmediately, but in small companies—the effect is stark, and can sink the ship.

Is it possible to coordinate activitieswithout rules and procedures? Well,these leaders see examples—of somegreat boats—proving that manners otherthan bureaucratic can assure smooth sailing.This frustration with bureaucracypaired with admiration for the greatalternative organizations triggers themto become leaders of the free culture.

Building the free culture. During ourfour years of research, Brian Carneyand I studied several dozen companiesand leaders instrumental for buildingtheir unique, freedom-based cultures—cultures in which employees havecomplete freedom and responsibilityto take actions they—not their bossesor procedures—decide are best.

Such cultures are not unfamiliar. Theyare akin to the “Theory Y” organizationdescribed by McGregor in 1957, and inpractice they’ve existed since the 1960s

Top-down isn’t going to get the right thing.”That made other peoples’ ideas intrinsi-cally equal—even superior—to his. He thenremoved all symbols and practices thatprevented people from feeling intrinsi-cally equal—stripping command-and-control managers of their authority,removing distrustful controls, andintroducing a four-day workweek.

These new practices satisfied peoples’need for intrinsic equality and madethem receptive to McDermott’s visionof world-class service: “Serve others asyou’d like to be served: If we serve peo-ple, they’ll come back to us.” He facili-tated everyone in owning this vision—the golden rule of service—which provid-ed people with a clear criterion of howto choose the best action. Freedom isnot anarchy but rather self-discipline toact freely and responsibly for the bestof the company’s vision.

To insure that employees can do theirbest to help customers, McDermottlaunched training. Soon, 75 USAAtraining rooms were providing classesto 30 percent of the workforce. Servicereps—60 percent of the workforce—gotup to 16 weeks of training, including aweek in affective listening. Employeescould also easily move to other jobsand further growth opportunities.

What remained was their ability toachieve that which depends on people’sauthority to self-direct by taking actionsthey deem best for the company. Thisauthority was provided by McDermott’smotto “We do whatever we can to help ourmembers (customers).” This translatedinto wide authority given to service reps tospend time to solve the customer’s problem(they’re measured by the number of prob-lems solved during the first call), to approveclaims on the spot of up to several thou-sand dollars even if the customer has noaccident proof, even to undo a signedpolicy if it appears that the companyill-advised customers. In freedom-basedcompanies, it’s not bureaucratic rules orbosses that dictate actions but the vision.

In his 25 years as CEO, USAA grewto become the fifth largest insurer inAmerica, increasing its owned andmanaged assets 400-fold with only asevenfold increase in workforce.

Freedom Inc. can be built and sus-tained anywhere. We’ve seen liberatingleadership build free cultures in compa-nies large and small. Moreover, withliberating leaders assuming the culturekeeper role, many Freedom Incs. stay atthe top of their industries for decades. LE

Isaac Getz is a professor at ESCP Europe Business School andco-author with Brian Carney of Freedom, Inc, (CrownBusiness). Visit www.freedomincbook.com.

ACTION: Create a free culture using a liberating style.

by Isaac Getz

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 5

PERFORMANCE CULTURE

M a k i n g t h e i d e a l o rg a n i z a t i o n a re a l i t y.

everything you do—or don’t do—counts.4. Build social capital. Building

social capital across the board is criticalto your upward mobility. Build socialcapital with people within your depart-ment, and with people in other depart-ments and in other companies whomight be a resource for you. Social capi-tal simply means building connectionswith people. Learn some personal infor-mation about others—such as theirhobbies, birthday, and kids’ names—and then talk about those items occa-sionally to build rapport. Remember:People don’t care how much you know untilthey know how much you care. Whenyou’re on your way up, you need totreat people like people, not like objects.Get to know your peers. You neverknow if one day a peer will be yourboss, and even if they aren’t, they can

make your work life very stressful.5. Learn about business. To make it

in business you have to know about busi-ness. Read about your industry, andother industries, to learn how differentcompanies handle things. If you’re wellread, you can give examples from otherindustries and companies of what workedand what didn’t. To be promotable, youhave to be on top of your game at alltimes; being knowledgeable is one wayto display your competence.

6. Do what others won’t do. In everyarea, there are things that need to getdone (or that are important to the boss),but no one wants to do them. Identifythose tasks, and then volunteer for them.Some people will call you a “kiss up,”but that’s okay. Ultimately, you have toplease your boss and to some extent yourpeers and direct reports, not nay-sayerswho have no chance of reaching the top.

7. Get a mentor. If your company hasa mentoring program, take advantageof it. If you don’t have access to such a

Are You Leader Material?

ANY SUCCESSFULexecutive will tell

you that there’s a gamein business. If you’re not willing toplay the game, you can’t win at it. Sowhile many people aspire to becomeleaders, they don’t make it past the$80,000 per year income level simplybecause they don’t play the game.

Why won’t they play? “I hate busi-ness politics,” they say. But who saidbusiness politics had to be negative? Forexample, if your boss does somethingcommendable, invents something new,or makes a great speech, it’s okay tocongratulate him or her. That’s notbeing political or kissing up; it’s being gra-cious and having decorum—two thingsthat will help you climb the ladder.

Aside from your job-specific abili-ties or skills, other big components ofthe game include your comportment,appearance, speech, attitude, andhabits. Consider these 10 tips:

1. Claim your space. When you’rewalking in the office, you need to lookpurposeful and centered. Scurrying,looking harried, or trying to blend intothe background will make you appearas though you lack confidence.Instead, walk with your full heightand claim the space around you.People need to view you as someoneon a mission—a mission to the top.

2. Build your confidence. Confidenceis not about self-esteem or self-worth.In fact, someone can have low self-esteem and still become a leader, asthe person’s low esteem could be dri-ving them to succeed. True confidenceis simply the belief that you can do thingswell. If you doubt your ability to dothings well, look back at your recordof accomplishment. Use those pastsuccesses as a way to build your confi-dence so it’s apparent to others as well.

3. Speak up. During meetings, weighin on topics. Don’t leave a meetingwithout having an opinion, or you’llget a reputation for being wishy-washyor unconcerned with the company’s success.If the discussion turns to somethingyou’re unfamiliar with or is not part ofyour duties, look engaged anyway.People above you are watching you, and

program, get a mentor on your own.Look through your network of peopleand find someone who is at or near thelevel you aspire to be. Invite the personout to lunch and talk business withthem. Learn what they did to get wherethey are. When you feel enough rap-port and comfort with the person, askif he or she will mentor you. Most peo-ple are honored by the request and willsay “yes.” If the person declines therequest, don’t take it personally. Simplyfind someone else to learn from.

8. Look professional. Tattoos andpiercings are popular; and if you wantone, by all means get one. However,when you’re at work, keep the tattoounder your clothing and remove visiblepiercings from your face or tongue.Today, it’s rare to see executives withvisible tattoos and piercings. So, fornow, keep them hidden at work.

9. Dress at the top of your level.People do judge you by how you look.For example, if you’re in a position orcompany where everyone wears jeansand t-shirts, you should dress a notch high-er. If you’re a man, wear khakis andgolf shirts; if you’re a woman, wearslacks or a skirt with a tasteful top.Dress as if you were meeting with your topclient. What attire would be professionalyet comfortable? No matter where youwork, casual day does not mean shortsand flip-flops. If executives see youdressed like that, they’ll view you as a“kid.” When you’re on your way up(in the 25 to 40 age bracket), the lastthing you want is to be called a kid.

10. Communicate effectively. Howyou communicate, both verbally and inwriting, can make or break your careerpotential. Using poor grammar, foullanguage, or an inappropriate tonemake you appear less intelligent. Mostexecutives are very polished when itcomes to their communication skills. Ifyour communication skills are lacking,find a resource (a class, a book, a men-tor, or a coach) to help.

Realizing your goal of attaining anexecutive level position is possible. Yousimply need to go beyond your techni-cal or job-specific skills and add somefocus to your executive presence. Afterall, you can’t become an executive ifyou don’t act or look like one. By con-centrating on these ten areas and keep-ing your skills up to date, you’ll reachthe executive suite sooner than youever thought possible. LE

Jean Kelley, America’s workplace coach, is founder of JeanKelley Leadership Alliance and author of Get A Job; Keep A Joband Dear Jean: What They Don’t Teach You at the WaterCoolers. Visit www.jeankelley.com.

ACTION: Prepare yourself for promotion.

by Jean Kelley

6 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

LEADERSHIP PROMOTION

Ta k e 1 0 t i p s t o b e i n g m o r e p r o m o t a b l e .

cess. Managing interpersonal conflictsand redirecting inappropriate energy isessential to managing relationships.Understanding yourself and develop-ing the capacity to catch yourself beforebeing seduced into a disagreement orargument is key to high EI. Similarly,being able to observe and read other’semotions is a core skill. When devel-oped, it enables you to defuse potential-ly volatile situations before they begin.

2. Influence with impact. When welooked at what people must do regu-larly at work to be successful, we iden-tified the ability influence with impact asvital. Influencing is the act or power ofproducing an effect without apparent exer-tion of force or direct exercise of command.Also, it is defined as the power or capaci-ty of causing an effect in indirect or intan-gible ways and the capacity to have aneffect on the character, develop-ment, or behavior of someoneor something. This ability tomake your case and influ-ence others—managers,direct reports, peers, or oth-ers—is a vital skill.

3. Interest-based negotia-tions. When we looked athow often people must negoti-ate with others, we adopteda negotiating method calledInterest-based Negotiations (IBN) from thebook Getting to Yes by Roger Fisher andWilliam Ury. IBN is a more effective wayto negotiate conflicting positions as itexpands the mutual interests of the partiesas opposed to the traditional win/lose modelof position-based negotiations. IBNenables you to gracefully navigatemany difficult situations. It helps facili-tate conflict resolution, builds collabo-ration and tends to temper humanemotions in negotiating for mutualgain. People tend to argue their posi-tions in an adversarial fashion lookingfor the win, but in IBN the goal is tomake the pie bigger in order for all par-ties to get enough of what they wantand need to be satisfied. IBN usuallydoes not have the less than satisfyingfeeling that comes from compromise.

4. High-level communications. HLCfocuses on communicating effectivelyin complex and virtual environments.Communication is any process by whichinformation is exchanged through a com-mon system of symbols, signs, or behavior.New barriers have emerged, and multi-tasking (text, email, IM, mute buttons)complicates the job of communicatingeffectively. You need to be more awareof the barriers and your habits thatmay contribute to them. Developingeffective listening skills amid distrac-

tions and using persuasive communi-cations are keys to achieving goals.

5. Stress and change management.The physical and emotional costs ofour 24 /7/365 work world is taking anever-increasing toll on our physicaland emotional well being. The use ofand over-use of technology adds to thefeeling that people never really leavework. This active world demands ourattention to a growing list of things fromwork to home to family to community.

There is global stress such as war,global recession and threats to our wayof life. There is national stress from oursluggish economy to the politicalupheaval. There is regional stress withStates near bankruptcy and cuttingthousands of jobs, and local stress withmunicipalities filing for bankruptcy.Add to this all of the stress that daily

life brings us. Skills inthis area are mandatory.

6. Appreciative inquiry.We need a better way toapproach success paths.Appreciative Inquiry comesfrom work done by DavidCooperrider and SureshSrivastva. They say thatan organization is a miracleto be embraced rather thana problem to be solved. AI is

a technique for deliberately seeking to dis-cover people’s exceptionality—their uniquegifts, strengths, and qualities. It active-ly searches and recognizes people fortheir specialties—their essential contri-butions and achievements. AI exploresways to build relationships, ask greatquestions and surface the best possiblesolutions, as opposed to focusing onwhat is wrong in a particular situation.AI looks at what could be right and whatmay be possible. Examining what has beensuccessful, what sustains success, andwhat is required to more forward fromthe AI perspective is a powerful way towork. People become more energizedand committed. They learn how toapproach solution finding instead ofproblem solving and learn to think dif-ferently about issues. Organizationstake on a different feeling when usingappreciative inquiry and the other smartskills. They transform their daily workhabits and the culture of the workteam, department, or company.

Think about combining all three lev-els enhanced by Smart Skills learning:IQ + EQ +TQ = Lifelong Success. LE

John Anderson and Marc Michaelson are principals of TheGlowan Consulting Group, transforming individuals and orga-nizations utilizing its L3 LD and executive coaching. Call 626-914-1545 or email info@Glowan.com. Visit www.glowan.com.

ACTION: Cultivate your smart skills.

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 7

COMPETENCY SKILLS

by John Anderson and Marc Michaelson

TRADITIONALLY, SKILL DEVELOPMENTwas limited to technical skills, with

some management and leadership training.Technical knowledge tends to get moreattention and is easier to cost-justify.

So, people with the best grasp ofthe technical issues and the businessget promoted into management posi-tions without ever asking, what skills arerequired to be an effective manager/leader?

Often, people end up in leadershippositions without ever having exam-ined their non-technical skill set.

IIQQ ++ TTQQ ++ EEQQ == SSmmaarrtt SSkkiillllssWhile technical skills are essential for

success, they represent only one suite ofskills required to be an effective leader.

Assess your smart skills. A blendingof IQ (Intellect Quotient), TQ (TechnicalQuotient) and EQ (Emotional Quotient)is required in management and leader-ship positions. Once assessed, you cancraft a personal development program toimprove certain skills. This highlightsyour natural talents and helps youfocus on areas where your skills andtalents are best suited.

Traditionally, so-called soft skills havebeen denigrated by technical peopleand seen as touchy, feely. Given this bias,many people shy away from buildingsoft skills, even resisting introspection,self-examination, and assessment oflimitations and weaknesses—notwanting to appear weak or vulnerable.And many trainers and HR pros havenot made an effective case as to whythese soft skills need to be developed.

We need a different approach—henceSmart Skills. Here are six skill areasthat help you become more effective:

1. Emotional intelligence. EI refersto the capacity for recognizing your ownfeelings and those of others, for motivatingyourself, and for managing emotions inyourself and in your relationships. Develop-ing your capacity to recognize and man-age your emotions and react appropriatelyto the emotions of others is key to rela-tionship building and leadership suc-

Smart SkillsLead with or without a title.

overcome (you can’t wish physicalreality away with positive thinking),but you can change much if you do notartificially limit yourself.

Review the components of your cur-rent identity. Where did they originate?Then, review them in the context ofwho you are today and who youwould like to become in the future. Ifyour present identity is fine with you,work on becoming a better version ofwho you are. If you want to make achange in your identity, you may beable to change more than you think.Assuming you do not have incurableor unchangeable limitations, you cancreate a new identity for your future,without sacrificing your past.

FFoouurr MMoorree TTiippssHere are four more things you can

do to improve your leadership identity:1. Stop trying to prove

how smart you are. Onepernicious impulse to provehow smart you are can leadto incredibly stupid behav-ior—engaging in dumbarguments, in which youfight to prove that you’reright and someone else iswrong; telling someonewho shares valuable infor-mation with you that you alreadyknew that, though it devalues them;defending an opinion or decision; seek-ing to improve a subordinate’s idea bysaying, “That’s great, but this would beeven better”; presenting your smartideas while tuning out what other peo-ple tell you. Effective leaders sacrificethe fleeting buzz of needing to besmart for the more valuable feeling ofbeing effective—of delivering on time,of bringing out the best in others, offinding the simplest route to a solution.

2. Measure your mojo. When youmeasure your mojo—a positive, pow-erful spirit that starts inside and radi-ates outside—you must do so in thepresent. Happiness and meaning can’tbe experienced next week—only now.So, always be “on” when engaged inyour craft. Don’t save yourself for later—love what you do when you’re doing it.

Measuring mojo is an exercise inself-assessment. Only you know whatyou’re feeling, and there is a cause-

Leadership Identity

MUCH OF YOUR IDEN-tity as a leader is

determined by yourpast. So, to make positive changes,you need to create a strong sense of yourfuture self—not the person you think youwere, but the person you want to become.

Four sources of identity combine toinfluence your mojo—that positivespirit that starts from the inside andradiates to the outside.

1. Remembered identity. You remem-ber life events that helped form yoursense of self. But the farther you goback into your past, the greater thechances that your remembered identi-ty won’t match who you are today. Wehave all made mistakes in our past,but those errors do not necessarily pinpoint who we are now.

2. Reflected identity. This is wherethe past and other people’s opinionsmeet. Other people remember eventsin your past, and they remind you ofthem, sometimes via feedback. Since Irely on feedback to help peoplechange for the better, I would neverdisparage its value, but not all feed-back is offered in good faith or in themost forgiving spirit. Even if yourreflected identity is accurately descrip-tive of your past, it doesn’t have to bepredictive. You can change.

3. Programmed identity. This is theresult of people sending messagesabout who you are or will become. Thisidentity has many sources. It can beinfluenced by your profession, the cul-ture you grew up in, or the people youselect as friends. Each can shape youropinion of yourself, but this can alsobecome a convenient scape-goat foryour behavioral mistakes.

4. Created identity. This is the partof your identity not controlled by yourpast or by other people. If you view youridentity as fixed, you’ll likely never tryto create a new one. You become para-lyzed when you create self-limiting defi-nitions of who you are. When you defineyourself by saying you are deficient atsomething, you tend to create the reali-ty that proves your definition. Yes, youhave real physical, environmental ormental limitations that you may never

and-effect dynamic between what youfeel, how much of it you show, andhow others perceive it. If you love whatyou are doing but somehow nevershow it, you are doomed to be misun-derstood. Of course, sometimes nomatter how positive you feel, you failto show it. You assume people can readwhat’s in your heart and mind. This iswhy so many executives are shockedwhen they receive confidential 360-degree feedback. You may see yourselfas fair, respectful and even-tempered; oth-ers may see you as stressed, angry anddissatisfied.

Once you see the disconnect be-tween how you see yourself and how oth-ers see you, I encourage you to take thisfeedback to heart, commit to change,seek to improve your assessment scoresin those areas dramatically. As a leader,you can’t assume the spirit you feel isthe spirit you show. You need to ensurethat your positive emotions are com-municated, and this may take moreeffort than the activity itself.

3. Repair a damaged reputation.Reputation doesn’t happen overnight—one event can’t form your repu-tation and one corrective gesture can’t

reform it. You need manyconsistent, similar actions to begin the rebuildingprocess. It’s doable but itrequires personal insightand discipline. When I firststart working one-on-onewith clients to change theirbehavior, they want instantresults, but it doesn’t workthat way. If you’re known

as a sarcastic boss, you have to biteyour tongue for months before peoplerecognize the change and start accept-ing the new you. You can go for weekswithout deviating, but after just oneincident where the old sarcastic youreappears, people begin to wonder ifyou’ve changed at all. You have to beconsistent in how you present yourself.If you abandon that consistency, peopleget confused. The reputation you’retrying to form gets muddied by con-flicting evidence and eventually losesits focus.

With leaders who have clear, posi-tive reputations, consistency is oftentheir primary virtue. Without consisten-cy, we’d never see their pattern.

What pattern are you creating? Beconsistent and steady, and over time,that persona becomes your signaturevirtue. People start to think of you assomeone who can be counted on,dependable, trusted with confidentialinformation, and someone with leader-

by Marshall Goldsmith

8 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

LEADERSHIP IDENTITY

H a v e a s e n s e o f y o u r f u t u r e s e l f .

new directions as necessary. Planningis about imagining the future, and whencircumstances change, re-imagining it.

4. Be comfortable with risk. No bus-iness is without risks. There’s always achallenge that must be dealt with.Business is about risk management. Youare constantly analyzing and assessingnew scenarios. I’m not a gambler bynature; but as a leader, I had to takerisks. For me, my task was getting ascomfortable as I could with the infor-mation I had. If you are risk-averse,you don’t want to be the boss/leader.Remember, not to act is still an action.

5. Know yourself and follow yourheart. We see in many stories how CEOslisten to their inner voice, despite con-ventional wisdom. Every leader needsthe courage to go against the pack, evenagainst advice of respected advisors,family or friends, if his or her internalcompass points in a different direction.

6. Take responsibility. Nobody is per-fect—including you and everyone youwork with. When the outcomes ofyour actions become clear, it’s fine totake credit where credit is due (evenbetter if others give it to you), but it’smore important to accept the blame

when it all goes wrong. Behumble in success and open infailure. When you fail,you’re usually going to befound out anyway, so takeresponsibility upfront—you’ll look strong.

7. Never stop learning.Leaders are naturally curiousabout every aspect of busi-ness, the psychology ofwork, the management of

people and enterprises. And in thepursuit of knowledge, there is no suchthing as a stupid question. If it’s impor-tant to you to know the answer, thenit’s important to ask the question.

The best way to learn is through yourown experiences and, much less painful-ly, through the experiences of others whohave walked the path before you.Faced with a difficult decision, you areultimately on your own. Nobody candefinitively tell you the right answer.But by broadening the inputs—and lis-tening to the voices of those who havebeen to similar places—you can findcomfort, direction, and inspiration forthe moments that will determine yourcourse and on special occasions, thosemoments that will come to define you. LE

Harlan Steinbaum was founding chairman of Express Scripts,and former CEO of Medicare-Glaser, and author of Tough Callsfrom the Corner Office (HarperCollins). To learn more, emailharlan.steinbaum@yahoo.com or visit harlansteinbaum.com.

ACTION: Cultivate these seven competencies.

WHEN I DECIDED TObuy back my com-

pany, a large retail drugchain, from a corporate conglomerate,my life changed dramatically. The per-sonal impact this one decision—thistough call—had on me made me won-der if others had experienced similardefining moments. To find out, I reachedout to several successful leaders.

Through their stories, we see howthese people handle no-win situations,manage risk, seize opportunities, andmake decisions. Each story is unique,but there are seven universal principles:

1. There’s no substitute for strongleadership. I define leadership as theability to set a direction and motivate peo-ple to move in that direction. Sometimesthis requires getting people to do thingsthey initially don’t want to door think they can do. It’sabout getting into a mindsetin which they genuinelywant to follow the missionand put reservations aside.You rarely get to make keydecisions under ideal cir-cumstances.

2. Ethical behavior is notjust right—it is smart busi-ness. I would hope ethicalconduct would be an obvious and com-pelling principle in its own right, butwe constantly see many leaders sailingethically rudderless. If you are cynicalabout the benefits of principled behav-ior, I hope these stories convince youthat it’s not just right—it’s also smartbusiness. For every deal point, negoti-ating position, higher price, or otheradvantage you might give up by beingethical, you’ll get it back in multiples fordoing the right and moral thing.

3. Always have a plan. I’ve heardleaders say “my industry moves toofast for strategic plans.” They feel theyare too busy to go through the academicexercise of planning (unless they’re look-ing for money from investors). Planningis not about tying yourself down to aset of steps. It’s about disciplined think-ing—forcing yourself and your team towork through issues so you’re pre-pared either to follow the script as itcontinues to make sense or go off in

7 Universal PrinciplesFor making tough leadership calls.

by Harlan Steinbaum

COMPETENCY PRINCIPLESship potential. So, be consistent—repeatedly give people a clear way toview you, which happens when you’redisciplined about your objectives andfollow through. After a while, peopleare locked into one way of interpretingyour behavior, and your reputationfalls neatly into place. That’s the bestthing about creating a reputation foryourself: Do it right the first time, andyou may never have to change your ways.

4. Overcome inertia. As much as weclaim to want happiness and meaningin our lives, I find that our defaultresponse in life is inertia—to do moreof what we’re already doing. Hence,the most reliable predictor of what you willbe doing in five minutes is what you aredoing now. Inertia has a paralyzingeffect on every aspect of your life—notjust the mindless routines, but thingsthat really matter, such as the level ofhappiness and meaning in your life.

Breaking the cycle of inertia doesn’tmean exerting heroic willpower. You justneed a simple discipline. For instance,some 20 years ago, I was preparing aleadership development session for aFortune 100 company when one seniormanager asked me: “Does anyone whogoes to these sessions ever really change?”I replied, “Few people achieve posi-tive, lasting change without ongoingfollow-up. Unless they know thatsomeone is measuring if they’re doingwhat they promised to—and at theend of the day, week or month, willreport it—most people fall prey toinertia. They continue doing what theywere doing and don’t become moreeffective. But if they know someone—a coach, co-workers, or manager—iswatching or evaluating them with fol-low-up questions, they’re more likelyto change.”

To achieve positive change, you mayneed a manager or coach to follow upon what you initiate; however, you canalso try this. Evaluate your daily activ-ity on a 1 to 10 scale on two questions:1) How much long-term benefit or meaningdid I experience from this activity? And 2) How much short-term satisfaction orhappiness did I experience in this activity?There are no right answers. No one cananswer the questions for you. It’s yourexperience of happiness and meaning.

When you know all of your activitieswill be evaluated on these two questions,you experience more happiness andmeaning in each activity and you havea happier and more meaningful life. LE

Marshall Goldsmith helps successful leaders achieve positive, last-ing change in behavior. He is the author or co-editor of 27 books,including Mojo. Visit www.marshallgoldsmithlibrary.com.

ACTION: Gain a sense of your future self.

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 9

development. To help employees’ mas-ter new, complex skills, the develop-ment process must also be psychological.For example, someone who likes soloproblem solving will hardly becomegood at collaborative group decisionmaking by reading about it. He wouldbenefit from his manager’s counsel togain self-insight about his current pref-erences and to explore obstacles tooperating more collaboratively. Tappinginto the psychological side of developmentinvolves building a trusting relation-ship, making it secure for employees toopen up to managers, and hear and acton their feedback. Getting to knowemployees on a deeper levelalso helps managers identi-fy just how far they canstretch each employee.EDMs encourage employeesto step out of their comfortzone, take risks, andbecome aware of their inter-nal drivers by providing asafety net. As one employeeexpressed, “My greatestdevelopment came when my managerreally pushed me out on the ledge, butquietly had my back the whole time.”

3. Connect people with developmentpartners. Many leaders value the ideaof having others help to develop theirpeople. Leaders can open the door to exper-tise that goes beyond their own while in-creasing their staff’s ability to find andwork with learning resources. EDMs helpemployees reach out to others. Next,they identify the right experts, based onthe targeted skills that their employeesneed to learn. For example, they mighthelp one employee reverse a souringkey account by having him understudya legend at turning unhappy customersinto content ones.

EDMs guide employees to bothmake the most of the new relationship,and be efficient with the volunteer devel-opment partner. EDMs leverage lessonslearned, look for gaps, and hone howpeople apply newly learned skills.

4. Teach skills to navigate organiza-tion politics. EDMs tout the importanceof helping their employees understandorganization politics. Functional andtechnical skills can get their people justso far. To succeed, employees also needto know how to navigate the politicsand appropriately influence others.

Grow Your Talent

This isn’t about manipulating the system.It is about people being realistic andstrategic regarding how decisions aremade and ensuring their ideas getheard. It is also about being sensitive tothe needs of the organization, providingresults that will resonate well with allstakeholders. Landscapes are litteredwith fallen solutions, and sometimes,fallen bodies of product championswho never learned to “socialize” theirsolution and shape it properly. EDMswork with people to map the politicalterrain, plan an approach, and practicethe skills to thrive in the terrain.

5. Shape your environment to drivedevelopment. Remember the last timeyou experienced a culture that teemedwith positive employee energy—peo-ple working hard, in constant learningmode and enjoying it? EDMs weavedevelopment into the texture of theirculture, making it abundant to all.

They develop talent not justamong a few high potentials,but across the board, circulat-ing work challenges amongteam members, keepingeveryone on the learningedge, and making learninga requirement, not anoption.

EDMs manage the inter-face between the employ-

ee’s world and the organization. Theydivert distractions from day-to-daydevelopment and ingeniously adaptthe organization’s talent developmenttools to their department’s needs.Creating a buffer between their team’sculture and the demands of the orga-nization, they satisfy both while maximiz-ing team learning. The result is an oasisof daily development that is a magnet fortalent and a prototype for the organization.

Like the EDMs, you can reap hugebenefits in the growth of your people.Learn from their Five Practices to growtalent while you grow results. These fivepractices make managers a powerfulforce for development. The time andeffort you take to drive development isoffset by employees’ increased ability tocarry a larger load, and reduction in re-work. Benefits abound. Employees geta palpable investment in their future; thecompany gets stronger talent. Yet, EDMsfeel they get the greatest reward—higherjob satisfaction—because they are notonly achieving results, but developingpeople as they create their legacy. LE

Wendy Axelrod and Jeannie Coyle are Managing Partners ofTalent Savvy Manager and co-authors of Make Talent Your Bus-iness. Jeannie was SVP, HR at American Express; Wendy wasdirector of LD and TM at Sunoco. wendy@talentsavvymanager.com

ACTION: Make everyday work developmental.

1 0 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

COMPETENCY TALENT

M a k e d a i l y w o r k d e v e l o p m e n t a l .

by Wendy Axelrod and Jeannie Coyle

LAST YEAR WE WORKED WITH A LEADERat a large company. Anguishing

over the failing results of a key direc-tor, he described her as stretched beyondcapacity, overwhelmed by putting outfires, and doing a poor job of develop-ing her direct reports. After we suggest-ed ways he could help her developothers, he told us “Sounds great, but, Idon’t want to mess in her business. Besides,I lack the time to work on her staffissues.” Taken aback, we speculatedthat her approach to developing peo-ple was most probably mimicking his!

Too many executives are hands-offwhen it comes to development. Whilemost leaders know that they should behelping people learn from experience,only 12 percent do it. In fact, most stillturn to the TM department or sendpeople to training. These programs—along with performance management andmanagerial coaching—only get people todo their jobs more efficiently withoutexpanding their capabilities.

So, are these executives doomed toliving with underdeveloped talent or hiringfully developed talent? Not according tothe exceptional managers who developtheir people daily while they get results.

AA NNeeww SSttaannddaarrddExceptional Development Managers (EDMs)

use five people development practices:1. Make every day a development

day. EDMs drive growth by using thework itself to develop people. Theycarve out targeted developmental workassignments. They add to and reshapework, purposely stretching the spacefor people to grow skills while theyachieve business results. EDMs stayever-present as active participants tosupport employees’ development on thejob. That also enables them to seizedevelopmental moments. As one EDMsaid, “When I see something—good,bad or ugly—I speak with the employeeabout it and don’t wait for a meeting.”

2. Tap the psychological side of

support people’s efforts to build goodrelationships, and treat all people fairly,they prompt reward responses. Peoplebecome more effective, more open toideas, and more creative. They are lesssusceptible to burnout, and they feelintrinsically rewarded.

Understanding threat and rewardresponses can help leaders who are im-plementing change. The brain is highlyplastic. Neural connections can be re-formed, new behaviors can be learned,and even entrenched behaviors can be mod-ified at any age. But the brain will makethese shifts only when it is engaged inmindful attention—the state of thoughtassociated with observing your ownmental processes. In a threatened state,people are more likely to be mindless,as their attention is diverted.

PPuutt oonn tthhee SSCCAARRFFFive social qualities enable leaders

to minimize the threat response andenable the reward response: status,certainty, autonomy, relatedness, andfairness (SCARF). Think of these asheadgear that leaders can wear to pre-vent exposure to dysfunction.

1. Status. We constantly assess howsocial encounters either enhance ordiminish our status. If you think thatyou compare unfavorably to someoneelse, the threat response kicks in. Highstatus correlates with longevity andhealth. Understanding the role of sta-tus can help leaders avoid practicesthat stir counterproductive threat respons-es. For example, performance reviewsprovoke a threat response—unlessextremely participative and well-designed. Offering feedback also putspeople on the defensive. Pay and pro-motion are not the only ways to booststatus. Status is also enhanced whenpeople receive praise, master a newskill, and feel recognized and respected.

NeuroLeadership

PEOPLE IN LEADERSHIPpositions are often

logical, analyticalthinkers. But the human brain is asocial organ. Its reactions are directlyshaped by social interaction. Althoughwork is often seen as economic trans-action, in which people exchangelabor for financial compensation, thebrain experiences the workplace firstand foremost as a social system.

People who feel betrayed or unrec-ognized at work—for example, whenthey are reprimanded, given a pettyassignment, or told to take a pay cut—experience it as a neural impulse, aspowerful and painful as a blow to the head.Most people temper their reactions,but they also limit their engagementand become transactional employees,reluctant to give more of themselvesbecause of the social context.

Leaders who understand thisdynamic can more effectively engagetheir employees’ best talents, supportcollaborative teams, and create a cul-ture that fosters productive change.Indeed, the ability to intentionallyaddress the social brain in the serviceof optimal performance will become adistinguishing leadership capability.

TTrriiggggeerriinngg tthhee TThhrreeaatt RReessppoonnsseeWhen you encounter something

unexpected—like a new colleaguemoving into the next office—the lim-bic system (a relatively primitive partof the brain) is aroused. Neurons areactivated and hormones released asyou seek to learn whether this newentity represents a chance for rewardor a potential danger. If the perceptionis danger, the response becomes a purethreat response—a fight-or-flightresponse, avoidance response, or, inits extreme form, the amygdala hijack,named for a part of the limbic systemthat can be aroused rapidly and in anemotionally overwhelming way.

When leaders trigger threat respons-es, employees’ brains become less effi-cient. But when leaders make peoplefeel good about themselves, clearlycommunicate their expectations, giveemployees latitude to make decisions,

2. Certainty. When we encounter afamiliar situation, our brain conservesits energy by shifting into automaticpilot: established neural connectionshave hardwired this situation and ourresponse to it. This makes it easy to dowhat we have done in the past, and itfrees us to do two things at once; forexample, to talk while driving. But theminute the brain registers ambiguityor confusion, the brain flashes an errorsignal. With the threat response, wemust stop talking and shift full atten-tion to the road. Uncertainty registersas an error, gap, or tension: somethingthat must be corrected. Not knowingwhat will happen next can be debilitat-ing—diminishing memory, undermin-ing performance, and disengagingpeople from the present. Of course,mild uncertainty attracts interest: Newor challenging situations spark curiosi-ty and energy to solve problems. Theperception of too much uncertaintyundercuts performance. When uncer-tainty gets out of hand, people panicand make bad decisions. Leaders mustcreate a perception of certainty tobuild confident and dedicated teams.

3. Autonomy. The perception ofgreater autonomy increases the feelingof certainty and reduces stress. Leaderswho want to support their people’sneed for autonomy must give themlatitude to make choices, especiallywhen they are part of a team or work-ing with a supervisor. Presenting peo-ple with options, or allowing them toorganize their own work and set theirown hours, provokes a less stressedresponse than forcing them to followrigid instructions and schedules.

4. Relatedness. Fruitful collabora-tion depends on healthy relationships,which require trust and empathy—andtrust and empathy are shaped by whetherpeople are perceived to be part of the samesocial group. Teams of diverse peoplemust be put together in a way thatminimizes threat responses. Trust can’tbe assumed or mandated, nor canempathy or goodwill be compelled.These qualities develop only when people’sbrains start to recognize former strangersas friends. This requires time andrepeated social interaction. The threatresponse is aroused when people feel cutoff from social interaction. Lonelinessand isolation are stressful. Leaders whostrive for inclusion and minimize situa-tions in which people feel rejected cre-ate a culture of peak performance.

5. Fairness. The perception of unfair-ness stirs hostility and underminestrust, while the experience of fairnessproduces reward responses. The cogni-

by David Rock

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 1 1

LEADERSHIP SOCIAL

Wear SCARF to avoid dys funct ion .

tive need for fairness is so strong thatsome people will to fight and die forcauses they believe are just—or committo organizations they recognize as fair.The perception of unfairness creates a cul-ture hostile to trust and collaboration. Lead-ers who play favorites or who appearto reserve privileges for people whoare like them arouse a threat responsein those outside their circle. Fairness isserved by transparency. Leaders whoshare information in a timely mannercan keep people engaged and motivat-ed. Morale remains relatively highwhen people perceive that cutbacks arebeing handled fairly—that no onegroup is treated with preference andthat there is a rationale for every cut.

If you are a leader, every action youtake and every decision you make eithersupports or undermines the perceivedlevels of status, certainty, autonomy,relatedness, and fairness. This is whyleading is so difficult: your every wordand glance is freighted with socialmeaning. Your sentences and gesturesare noticed and interpreted, magnified,and combed for meaning.

The SCARF model helps alert you topeople’s core concerns and shows youhow to calibrate your words and actions.For example, people rarely support ini-tiatives they have no part in designing,as doing so would undermine autono-my and status. Proactively adopting aninclusive planning process can prevent thesabotage that results when people feel theyplay no part in change that affects them.

The more practiced you are at read-ing yourself, the more effective you willbe. For example, if you see that micro-managing threatens status and autonomy,you’ll resist your impulse to gain cer-tainty by dictating details. Instead, you’llseek to disarm people by giving themlatitude to make their own mistakes.

When a leader is self-aware, it givesothers a feeling of safety. It makes iteasier for them to focus on their workand improve performance. Being open,transparent and spontaneous creates authen-tic leadership presence. This approach mini-mizes status threats, increases certainty,and creates a sense of fairness.

The SCARF model shows why intelli-gence is insufficient for leadership. Highintelligence often corresponds with lowself-awareness, social skills, and empa-thy. Leaders need to create a culturethat promotes status, certainty, autono-my, relatedness, and fairness. LE

David Rock is president of the NeuroLeadership Institute, CEOof Results Coaching Systems, and author of Your Brain at Work(HarperBusiness) and Quiet Leadership: Six Steps to TransformingPerformance at Work (Collins). Visit www.davidrock.net.

ACTION: Try wearing the SCARF model.

by Barack Obama

our power—it is the principles uponwhich our union was founded. We bringour enemies to justice while adheringto the rule of law, and respecting therights of all citizens. We protect our ownfreedom and prosperity by extending it toothers. We stand not for empire, but forself-determination. We support revolu-tions with fidelity to our ideals, withthe power of our example, and with anunwavering belief that all human beingsdeserve to live with freedom and dignity.

Our strength abroad is anchored inopportunity for our citizens at home. Inthe last decade, we’ve spent a trilliondollars on war, at a time of rising debtand hard economic times. Now, wemust invest in our greatest resource—ourpeople. We must unleash innovation thatcreates new jobs and industries, whileliving within our means. We mustrebuild our infrastructure and find newand clean sources of energy. And, wemust recapture the common purposethat we shared at the start of this timeof war. For when our union is strong no hillis too steep, no horizon is beyond our reach.

It is time to focus on nation-buildinghere at home. In this effort, we drawinspiration from Americans who have

sacrificed so much. To ourtroops, our veterans andtheir families, I say that wewill keep our sacred trust withyou, and provide you with thecare, benefits, and opportuni-ties that you deserve. Recently,I met some of these patriot-ic Americans at Fort Camp-bell. I spoke to the 101st

Airborne that has fought inAfghanistan, and to the

team that took out Osama bin Laden.Standing in front of a model of binLaden’s compound, the Navy SEALwho led that effort paid tribute to thosewho had been lost—brothers and sis-ters in arms. This officer—like so manyothers I’ve met—spoke with humilityabout how his unit worked together asone, depending on each other, andtrusting one another, as a family mightdo in a time of peril.

That’s a lesson worth remembering—that we are all a part of one Americanfamily. Though we have disagreementand division, we are bound together bythe creed written into our founding doc-uments, and a conviction that theUnited States of America can achievewhatever it sets out to accomplish. LE

Barack Obama is president of the United States of America.This article is adapted from his speech from the White House,June 22, 2011, provided by Vital Speeches of the Day, editorDavid Murray, vseditor@mcmurry.com.

ACTION: Center your leadership on principles.

THIS HAS BEEN A DIFFI-cult decade. We’ve

learned anew the pro-found cost of war—a cost that’s beenpaid by the 4,500 Americans who havegiven their lives in Iraq, and over 1,500in Afghanistan—men and women whowill not live to enjoy the freedom thatthey defended. Thousands more havebeen wounded. Some have lost limbs,and others still battle the demons thathave followed them home.

Yet, we take comfort in knowing thatthe tide of war is receding. Fewer areserving in harm’s way. We’ve ended ourcombat mission in Iraq, with 100,000American troops now out of that coun-try. Even as there will be dark daysahead in Afghanistan, the light of asecure peace can be seen in the distance.These long wars will cometo a responsible end—wewill never tolerate a safehaven for those who aim tokill us. They cannot escapethe justice they deserve.

As these wars recede, wemust learn their lessons.This decade of war hascaused many to questionthe nature of America’sengagement worldwide.Some would have America retreat fromour responsibility as an anchor of globalsecurity, and embrace an isolation thatignores the threats that we face. Otherswould have America over-extended, con-fronting every evil to be found abroad.

We must chart a centered course. Wemust embrace America’s singular role,but we must be as pragmatic as we arepassionate; as strategic as we are resolute.When threatened, we must respond withforce—but when that force can be targeted,we need not deploy large armies overseas.When innocents are being slaughteredand global security endangered, wedon’t have to choose between standingidly by or acting on our own. Instead,we must rally international action, as we’redoing in Libya. There we do not have asingle soldier, but are supporting alliesin giving the Libyan people the chanceto determine their own destiny.

In all we do, we must remember thatwhat sets America apart is not solely

Power of PrinciplesFrom union comes strength.

LEADERSHIP UNITY

1 2 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

position? Leaders can’t clone themselves,but they can teach lessons of experience,impart wisdom, and provide guidanceto team members in tough situations.Wise decisions need to be made at alllevels. The leader-teacher model strength-ens internal feedback loops.

3. To make LD more stuff-like thanthing-like. In quantum mechanics, sci-entists question whether the essence ofmatter and energy is more thing-like, asin peas on a dinner plate, or more stuff-like—as mashed potatoes. Today’sapproach to LD is too thing-like. It oper-ates like a Ford assembly-line with itscompetency models and linear perfor-mance evaluations designed to pop outpure replicas. Organizations must removethese corsets if they want, for example,CFOs to be less like bean counters andmore apt at giving strategic advice;customer-facing service teams to builddeeper client relationships; researchers

and product managers to fail and learnfast from mistakes. When leaders startteaching, they can quickly crush the peasand mix them into the mashed potatoes;development gets filled with good stuff.

4. To enable domain mash-ups.Leaders must scour various landscapes,and then lead people beyond their ownpractice areas to investigate the new-ness in the world, and the frameworksand models evolving in other industries.As teachers, they must create space andconditions for serendipitous interactionsand the mash-up of professional domains.

5. To value learning before there’s lit-tle value left. CEOs are concerned thattraining is not strengthening the differ-entiators that set the company apart.When leaders participate in designing anddelivering training, learning programs tar-get core capabilities more effectively. Leadersmight also use learning programs toadapt to new competitive conditions.

6. To act as stressor. In chemistry, a

Get Leaders Teaching

DELL FOUNDER MichaelDell stepped back

into his role as CEO in2007 as company performance sputtered.He recognized that his business modelbased on just-in-time inventory wasn’tenough to sustain long-term growth. Theworld was moving to a services-basedeconomy, and Dell, like IBM two decadesprior, was deeply entrenched in hardware.CEO Dell realized that new Apple storesprovided a compelling experience that wasluring consumers to fawn over new toys.

Michael called in a consultant to helprevitalize his namesake brand. As the newplan took shape, Dell’s CLO, AlejandroReyes, left the top learning post to workwith the senior team to inculcate a work-force nearly 100,000 members strong toensure the entire firm was on the samepage in terms of alignment and engage-ment. The secret weapon in Reyes’ strate-gy was a Leaders As Teachers approach.

A few leaders taught the strategy to thetop 700 executives, who taught their directreports, and so on. In all, leaders delivered1,500 sessions at 150 locations. Reyes’ saidimproved leader engagement ignited a firein employees. When leaders participatefully, their companies spring to life.

In mid May 2011, a Dell competitor cutits 2011 revenue projections due to fallingdemand for its personal computers andprinters. That day, Dell beat its quarterlytarget by 11 cents per share, squeezinggreater profitability from each sale. Signsthroughout the earnings report showedthat the Dell team had moved back on top.

1100 RReeaassoonnss ffoorr LLeeaaddeerrss ttoo TTeeaacchhHere are my top 10 reasons for hav-

ing a Leaders as Teachers approach to LD.1. To fill your air sandwich. Nilofer

Merchant, in The New How, deftlydescribes the void that arises betweenstrategies and execution plans, as thenumber of execution options availableto leaders increases. As Merchantnotes, leaders must engage in discussions,debates, and learning from experiments tofill this gap. Leaders can fill the gap byteaching direct reports to evaluate andselect options for executing strategies.

2. To develop top talent in everyposition. What leader wouldn’t like tohave a talented top performer in every

stressor is something that can speed upa reaction rate. Today, leaders must seethemselves as stressors—to push teamsout of stasis and into action, to be vigi-lant to factors shaping the market, andto avoid the bystander effect. Without aleader-teacher, leader-coach pushingfor evolution, teams edge toward obso-lescence. Leaders who aren’t catalystswill push their teams there faster.

7. To hear your echo. How can youknow if the messages you are sendingto the team are getting through withthe intentions you infused—withoutmisunderstanding, filters, false facts, orcynicism? Often you don’t realize yourmessage has been mangled beyond recogni-tion until things go wrong. Get in frontof the team as a facilitator, coach andmentor. Teach your messages. Ask forquestions. Listen to how your ideasare being interpreted, and use the timeto refine the distinctions, tighten mean-ings, and practice a common language.

8. To co-design the important experi-ments. Most R&D teams practice proto-typing and failing fast, finding lessonsand making adjustments. Now, to nav-igate a marketplace where consumerschange preferences overnight, andtechnological disruptions appear with-out warning—leaders need to run moreparts of their business like a series of con-trolled experiments. Leaders must pressteams to ensure they are solving theright problem, defining what successlooks like, isolating the independentvariables under analysis, and definingplans based on actionable data fromfeedback. Leaders direct the learning lab.

9. To be a scaffold for ideas. Leadershave a broader perspective, and shouldstand back frequently to let the largerview come into focus. From that van-tage point, they can teach teams aboutactivities and directions pursued inother departments, and how those par-allel efforts might influence possiblefutures. Keeping teams in a state ofreadiness for change creates conditionsto adapt at the speed of change.

10. To spite Thomas Malthus (the econ-omist who in 1798 predicted societies wouldreturn to subsistence living as populationgrowth outpaced agricultural production).He could not imagine the efficienciesthat might come from advances in agri-culture, food production, and energyusage. And, there was no evidence ofthe natural tendency for birth rates todecline as groups rose from poverty.Teaching leaders must drive innovationto avert future Malthusian crises. LE

Sue Todd is President of Corporate University Xchange. Call212-213-2828, 717-512-6078 or stodd@corpu.com.

ACTION: Ensure leaders are teaching leaders.

by Sue Todd

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 1 3

COMPETENCY TEACHING

H e r e a r e t h e 1 0 b e s t r e a s o n s w h y .

of leadership,” she said, “not a circle ofsilos reporting to me. We made a com-mitment to get up into the mountains,and for me to sit as a co-learner whileChristina and Ann taught the form.”

We squeezed a circle into the resortcondo living room and put in the cen-ter objects people had brought thatexemplified their commitment to thereshaped team. One woman brought abicycle wheel with many spokes con-nected to the center, and in that hub aphoto of a mother and her sick child—the heart of their work. Around this,we placed four stuffed animals (it’s achildren’s hospital, after all): a giraffe torepresent vision, a lion to representcourage, an elephant to represent theunspoken, and a monkey to representfun. After placing the center as a pointof shared focus, we began with around of check-in, asking people tospeak whatever they needed to clearthe past, look to the future, acknowl-edge their challenges, and appreciatetheir working environment—the ele-phant, giraffe, lion, and monkey spunfrom hand to hand. We establishedworking agreements, and a sub-grouptook on the task of developing anintention statement to guide their work.

We then broke for dinnerand an evening ramble alonga mountain stream.

The next morning, severalpeople with a love of cook-ing and camping arrangedan outdoor breakfast, com-plete with campfire. Aroundthis fire, people spoke aboutmoments and mentors that

had shaped their careers. When wereturned to the inside circle, we didthe agenda-based circle, with each per-son negotiating time for their agendaitem, carrying the necessary informa-tion into the group, asking for whatthey needed in the way of feedback,decision, or action. We stepped in tocoach the form, but they were spin-ning the process themselves.

The CNO assures us that the circleis still working—they are functioning asthe council of leadership she envisioned(and they then envisioned together).This is a common pattern in our worklife—and our greatest joy: that we canintroduce a collaborative process thatis stable in its core structure andadaptable in its application so that cir-cle can serve wherever it is called anda leader can sit in every chair. LE

Christina Baldwin and Ann Linnea are co-authors of TheCircle Way, A Leader in Every Chair, and the co-founders of www.peerspirit.com.

ACTION: Put a leader in every chair.

The Circle Way

THE 5 CHOICES TO Extra-ordinary Productivity

empower you to achieveextraordinary results—outcomes onceoutside your reach. They enable you tomake daily decisions that are focusedon your most important outcomes, thebig rocks, not the gravel—activities thatdistract you from achieving your mostimportant goals. The 5 Choices guideyou to a new paradigm of your roles,effective weekly and daily planning,technology mastery, and energy renew-al for extraordinary achievements.

Choice 1: Act on the important—don’treact to the urgent. Can you evaluatewhich choices will give you the highestreturn on your time and attention? Whenyou act on the important, you get aheadby doing the right things. When youreact to the urgent, you get ahead bydoing more things faster. Learn to negoti-ate competing demands, make smartchoices, spend more time on importantthings, and say no to less important things.

Choice 2: Go for extraordinary—don’tsettle for ordinary. Do you define pur-poseful, high-impact outcomes that willtransform the results you achieve? Con-sider: As a leader, I will achieve (extra-ordinary outcomes) through (activities).

Choice 3: Schedule big rocks—don’tsort gravel. Prioritize and organize thosefew high-leverage activities that will moveyou forward in your role. Spend 30 min-utes every week, 10 minutes every dayin quality planning—this will transformthe time you spend everywhere else.

Choice 4: Rule your technology—don’tlet it rule you. Do you have a reliablepersonal system that enables you to getthe right things done, or are you con-stantly distracted by your technology?You need to manage tasks, appointments,contacts, notes, and documents.

Choice 5: Fuel your fire—don’t burnout. Do you consistently renew yourselfby relaxing, moving, sleeping regularly,and eating nutritiously to generate max-imum energy for things that matter most?

Your choices can either sink you orhelp you achieve extraordinary results. LE

Stephen R. Covey is Vice Chairman of FranklinCovey. Visitwww.the5Choices.com.

ACTION: Make these wise five choices.

Put a leader in every chair.

WHEN WE CHANGE THE CHAIRS, WEchange the conversation.

Everyone has a sphere of influenceinside which s/he can exert leader-ship and invite the best participation.For 20 years, through PeerSpirit CircleProcess, we have been bringing peo-ple face to face in collaborative groupexperiences that spread out leader-ship, responsibility, and outcomes.

Though we started our careers indifferent fields, we joined in partner-ship as we realized that by holdingour classes in the shape of a circle—all chairs facing in toward a centerthat symbolized common purpose,and everyone facing every-one else present—we hadhappened upon a powerfulcollaborative form. Peoplewere energized, creative,thoughtfully engaged.

Unleashing power and col-laboration requires a socialinfrastructure to support inter-action and intention. We beganstudying the role of council leader-ship from a cross-cultural perspectiveand codified common elements into adesign we call PeerSpirit Circle.“Peer,” because the circle levels thehierarchy that exists outside circleand invites everyone to speak withan equally valued voice; and “spirit”because circle calls something intothe space between us that enlivenssynergistic possibilities, as thoughwaking up the spirit of a group. What adynamic way to run a team, depart-ment, staff meeting, or board!

In a large urban children’s hospital,the new Chief Nursing Officer (CNO)had used PeerSpirit Circle Process ather previous hospital and wanted toinvite a shift in meeting culture andreporting structure as she started hernew responsibilities. After the initialphase of reorganization, and whenher staff was in place, she arranged atwo-day retreat and invited us in toteach circle. “I wanted a true council

1 4 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

Five ChoicesAchieve the extraordinary.

LEADERSHIP CIRCLE PERFORMANCE CHOICES

by Stephen R. Covey

by Christina Baldwin and Ann Linnea

THE BEST COMPANIEShave a well-articulat-

ed vision and someonewhom the tribe can look up to evange-lize and vitalize that vision, speeding itto fruition. That person acts as the com-pany Storyteller-in-Chief (SIC).

Developing a new strategic vision ischallenging, but not as challenging asconvincing employees to embrace andwork toward that vision. Often, youare asking them to change (sometimesradically) the way they think, talk andact. New requirements also causeemployees to scrutinize leadership tosee if they practice what they preach.

If your executives already lead byexample, they next need to evangelizethe vision through the strategic use ofstories that bring that vision to life.

You may feel that storytelling has noplace in business, but storytelling is theway we all most readily and naturallycommunicate with each other. However,there is a big difference between thestorytelling we practice as social, com-municative human beings, and the sto-rytelling we use strategically as leadersto align, focus and inspire a workforce.The latter involves a more calculatedtelling of relevant stories to demon-strate a vision coming to life and helpemployees to understand the nuancedmeaning driving that vision and thenremember and reflect that meaning intheir own work.

Before you assume the SIC role, youneed to know what distinguishes a sto-ryteller. Consider these four guidelines:

1. SICs treat storytelling as a dia-logue among equals. They interact andengage with the people, bridging thegap between you and me to make theiraudience see the storyteller as one ofthem. They treat storytelling as a conver-sation—a genuine exchange of meaningshared between people. It is not a lec-ture or endless download of informa-tion, but a collective experience inwhich the audience is just as active asthe storyteller, each picking up some-thing meaningful from the interaction.

2. SICs use stories to facilitate theway people think and see the world,without forcing it. When done well,storytelling empowers people,enabling them to hear what you have

Storyteller-in-Chief

by Bill Baker

COMPETENCY STORY-TELLING

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 0 9 1 5

tified the Top 10 factors that contributemost to the failure of senior leaders: 1) failure to build relationships and a teamculture, 40 percent; 2); mismatch for theculture, 32 percent; 3) failure to deliveracceptable results, 25 percent; 4) unable towin support, 25 percent; 5) lack of appro-priate training, 23 percent; 6) egotistical,15 percent; 7) lack of vision, 14 percent;8) inflexible, 13 percent; 9) poor manage-ment skills, 12 percent; and 10) poor com-munication, 11 percent.

If leadership success is so critical,why is so little support given to leaderon-boarding and early development forboth internal and external candidates?A lack of company support for new lead-ers may be attributed to an onerouscost-management focus—a perspectivethat it is expensive to develop leaders.Part of the lack of company supportmay be due to the organization mov-ing with speed to address an urgentleadership opening. The caution here isto not overly rely or assume that theselection process is perfect. The mistakecompanies often make is to assumethat a perceived all-star does not war-

rant development to per-form at the expected level.Frequently, this is simplynot the case.

The costs associated withfailure or ineffective execu-tive transitions are high andthe lack of support for tal-ent has long-term negativeeffects for both leaders andorganizations. Considering

the evolving workforce and theincreasing importance of engagement forperformance and productivity, theleader’s role is the greatest catalyst forsuccess. Public or visible failure of highpotentials undermines the overall suc-cession and development effort.

For organizations to thrive in theHuman Age, leaders must be at the fore-front in creating exceptional work-forces. Leaders need to build the casefor a robust workforce strategy that hasa unique and committed focus on lead-ership development. That strategymust ensure success for internal pro-gression and integrating external tal-ent. It must clearly identify the leader-ship competencies required for successtoday and in the future, as well as asound understanding of the factorsthat lead to derailment. Only then canleaders truly deliver both on businessgrowth and transformation. LE

Owen Sullivan is CEO, Right Management, EVP, President,Specialty Brands, ManpowerGroup, the talent and career man-agement expert within ManpowerGroup. Email infor@right.com.

ACTION: Know what contributes to success.

Global Leaders

WE HAVE ENTEREDthe Human Age,

where human potentialis the catalyst for change and Talentismhas become the new Capitalism. Despitethe varied implications of our currentdynamic market conditions and theglobal readjustment to economictrends, the one constant is the need foran exceptional workforce. And, at theheart of business growth and transfor-mation is the need for exceptionalleadership, specifically leaders withglobal mindsets and competencies.

Leadership development (LD) todayis more science than art. Recently, wepartnered with the Chally Group tosurvey 1,400 CEOs and HR profession-als to learn about their LDpractices. We asked them torate the four competenciesmost critical for C-levelpositions. They cited: 1) cre-ating a strategic vision, 92 per-cent; 2) inspiring others andmaintaining key leadershipresponsibility, 62 percent; 3) developing an accurate andcomprehensive overview of thebusiness, 57 percent; and, 4) wise deci-sion making, 55 percent.

Leaders can greatly impact growthand transformation by accelerating thedevelopment of high potential talent.Development must include real-worldexperiences with strategic leaders andexposure to executive stakeholders.Today, leadership development needsto be grounded in real work andfocused on the critical competenciesrequired for success in C-level roles.High potentials need to have a mix andintegration of development activities, sup-ported by stretch assignments, mentoringopportunities, and action learning efforts.Real-life work situations need to becarefully selected to develop the rightparts of the success profile. Creatingpredictive and validated criteria, sup-ported with consistent metrics isrequired to evaluate their performance.

A challenge for corporate leaders isthat leadership turnover for non-perfor-mance or other leadership dissatisfactionissues continue to be problematic formany organizations. Our survey iden-

by Owen Sullivan

COMPETENCY/PERFORMANCE

Why they succeed and fail.Why your company needs one.

to tell them and to draw their own con-clusions. The conclusions are remark-ably similar to what you want them tobe, but they are their conclusions, notyours. People value their own conclu-sions more than yours. So as a SIC, youuse storytelling to shape and guidetheir thinking, but not to control it.When you entrust them to think forthemselves, they will respect their con-clusions all the more, and respect youfor helping them reach them.

3. SICs are truthful, vulnerable andunafraid to show that they are human.They are authentic, genuine, not hesi-tating to admit mistakes, confusion ordoubts if they have them. In this age ofultimate transparency, we recognizethat no one is perfect and that even ourleaders have fallibilities. We forgivethem that (to an extent), but at thesame time won’t tolerate it if they tryto lie their way around something.Ultimately, through the stories thatleaders share, they invite people in andreveal parts of themselves; and theaudience feels closer to them as aresult. Storytelling, used strategically inleadership, is about being human, un-derstanding that people follow people—not PowerPoint presentations, emailsor reports. Jeff Immelt, CEO of GE, is agifted storyteller who uses stories tomake himself more approachable,accessible, and effective as a leader.

4. SICs develop a robust pantry ofstories to have at their ready. They col-lect relevant and compelling stories,identify them, develop them, cataloguethem away so that they have them “onfile” and ready to use when needed.Through the rich collection of storiesthey curate, SICs always have the per-fect, relevant story to pull use for anysituation. Tony Hsieh, CEO of Zappos.com, is a master at such storytelling.

In every great undertaking, manypractical steps need to take place; butfirst there is a leap of faith. Strategicstorytelling is a way to get employeesto make that leap, helping them marrythe logic of where you want to go as acompany with the magic of why youwant to go there in the first place. AsSIC, you can bridge that gap betweenvision and practice through the storiesthat you tell of your vision coming tolife in practice, and in the process,aligning and inspiring employees to dowhat you need to do to move yourbusiness and your brand forward. LE

Bill Baker is founder/principal of BB&Co Strategic Storytelling,helping leaders advance their brands through strategic story-telling. Visit http://billbakerandco.com, call 604-868-1924 oremail storyteller@billbakerandco.com, bill@billbakerandco.com.

ACTION: Become a master story-teller.

by Marc Blumenthal

sharing feedback on their experiences.By adopting a robust learning man-

agement system (LMS), leaders can com-bine social aspects with an employee’straining background, performance his-tory, and competency levels to identifythe top candidates for leadership positions.And, with the use of various social col-laboration tools, organizations will like-ly discover that they have potential leaderswho have previously gone unnoticed.

Standardizing core competencies.Technology such as TM systems canhelp define critical leadership roles,map core competencies to those rolesand then objectively measure compe-tency levels through a scoring system.An organization can standardize itscompetencies, ensuring that they alignwith the business strategy, goals andobjectives. Standardized competenciesmake it easier to identify and trackhigh-performing employees. And, itbecomes more apparent when there isa gap in competencies and skills. Withtechnology, training associated withspecific leadership competencies can beidentified and added to a personalizeddevelopment plan for an employee.

Tying career development to succes-sion planning. Reinventedsuccession planning is bot-tom-up and requires theactive participation ofemployees. Enterprise-widetechnology is ideal for sup-porting this approach.Online tools that supportcareer management activi-ties can aggregate employ-ee data in online resumesand empower employees to

explore internal career paths. Thesetools can also make it easier for em-ployees to find and apply for positions.

Using mobile technology. Usingmobile devices, more employees willaccess succession and talent manage-ment systems and take advantage ofsocial collaboration, mobile learningand online career development tools.For example, a restaurant server mightlog in to the company’s internal forumand find out which competencies heneeds to become a manager and watcha training video on tableside cooking.Mobile technology offers more oppor-tunities for career development andexpands leaders’ contact with employ-ees and facilitates tracking how theylearn and collaborate. Hence, the pool ofleadership candidates grows exponentially. LE

Marc Blumenthal is CEO of Intelladon, a provider of learning andTalent Management solutions. Email Marc@intelladon.com.

ACTION: Grow your pool of leadership candidates.

BUSINESS IS MORE COM-plicated; change is

constant; expectationsare high; and we’re moving at warpspeed. This is why the old successionplanning model can no longer produce theleaders we need to prosper. Traditional SPfocuses on identifying replacements forthe exit of a senior leader. That list ofnames falls short when it comes to pro-ducing potential leaders who are ready tohandle a multitude of scenarios.

Today, you need more than a succes-sion strategy for the C-suite. You needmore nimble leaders who understandthe dynamics of our economy and thenature of business. To grow your busi-nesses and serve your clients, you needdecision makers at every level. Every posi-tion now requires smart thinking andleadership. It’s time to rein-vent succession planning; tochange it from a top-downboardroom exercise to aninteractive, organization-wide, bottom-up process.

How do we find thesepromising leaders? Today’svirtual work environmenthas made it a challenge toidentify potential leaders.With workgroups spreadacross the country and travel budgetstight, leaders find it tough to identifyemerging leaders. This is where tech-nology closes the gap and supports aninternal search for potential leaders.

Engaging in social collaboration.Regardless of their role, leaders arevoracious learners, always trying to getinsight or collaborate with more peo-ple. So, whether an organization intro-duces an internal blog, forum or wiki,high-performing leaders will use it tocollaborate with their peers and withthe larger internal community to solveproblems. It’s like a Facebook wall,because it reveals how these employeesserve their customers, peers, and man-agers. And it can be used by leaders toidentify those who are helping the bus-iness beyond doing their job. Technologycan also allow companies to engage theirexternal audiences. Social collaborationtools can provide customers with a pri-vate, secure online environment for

Reinvent SuccessionLeverage technology to create leaders.

LEADERSHIP SUCCESSION

1 6 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

aspects of leadership—like strategicthinking, social savvy or innovation—flow from these seven. Strategic think-ing is a part of good leadershipjudgment. Social savvy flows fromempathy and emotional intelligence.Innovative leaders are rare becausethey require a heavy dose of many ofthese traits, including vision (to imag-ine and inspire the advancement ofnew ideas), empathy (to understandothers’ needs and to get them to buyinto the process), passion (to persevereand overcome theinevitable setbacks), andcourage (to take risks andperhaps run against con-ventional wisdom).

Organizations go awrywhen they don’t under-stand these basic pieces andhow they fit together. So,they end up with glaringdeficiencies in their leadershipranks, especially withrespect to individuals who can driveinnovation. Organizations that link anaccurate assessment process to theirleadership development consistentlycome out ahead. They identify innova-tors early and give them the opportu-nities, coaching, and resources tosucceed.• Ryder System. Ryder uses a robust

assessment approach to identify anddevelop its top leaders. They measureseven of the critical dimensions andeschew an assessment process basedsolely on past behavioral interviews or360-degree referencing. Ryder haslearned that backward-looking interviewsare a sub-standard predictor of success forsomeone who is assuming a new position.Instead, Ryder gets a complete pictureof a candidate’s leadership potential,including his or her strengths and com-petencies, such as building a team, dri-ving results, and innovation.• Western & Southern Financial Group.

Identifying somebody who can be a trueinnovator is only a start. To become agreat leader, the individual needs tohave the right opportunities and coaching.Western & Southern Financial Group(W&S) understands this link.

During his 18 years as CEO, JohnBarrett has developed new productsand earned a reputation for creative

Choosing Leaders

MOST INNOVATIVE LEADERS WHO WILLemerge in the next decade aren’t

toiling in solitude somewhere—manyare probably already working in yourorganization. They are your young,antsy, rising-star managers. All youhave to do is find them. With the rightrecognition and resources, they willemerge as industry game-changers.With their talent and leadership, yourorganization will gain a decisive com-petitive advantage. Your job is to findthese potential stars early, give themplenty of developmental opportuni-ties, and ensure they do not slip away.

Most companies do a poor job ofspotting and grooming innovativeleaders because they don’t know whatto look for. They don’t understand theunderlying attributes possessed byfuture innovators or leaders. Whenevaluating talent, they treat all leader-ship candidates the same, and getseduced by false predictors of successsuch as a charismatic personality, Ivy-League education, or past experience.These factors tell only half the story.

Other times organizations rely on apatchwork of assessment techniques,including backward-looking interviewsthat favor smooth-talking candidatesover people with true leadership poten-tial. Or, organizations react to a talentgap by reaching outside the companyin search of an expert innovator orchange agent who can come in andmagically make all of their problemsdisappear. This is not a strategy forlong-term success: most outsiders failwhen recruited to supercharge growthat struggling organizations.

The secret to getting it right startswith knowing what to look for. Weexamined over 200 leadership attribut-es and narrowed the list to the criticalseven that you should seek in yourleaders: integrity, empathy, emotionalintelligence, vision, judgment, courageand passion. These attributes are likethe DNA of a great leader. Other

diversification. As of 2010 its life insur-ance division had a S&P AA+ ratingfor the fifth consecutive year, putting itin elite company. Barrett attributes muchof this success to W&S’s dedication toleadership development. “We devote moreresources to LD than most other com-panies our size,” he said. “It’s at thecore of what we do.” Their LD processbegins by giving rising stars the right mixof opportunities to ensure that they’re beingchallenged and stretched—taking themout of their comfort zone, and provid-ing some latitude for creative recombi-nation, bold chances, and learning.W&S also emphasizes mentoring toenable rising stars to get feedback inreal time and practice articulating anddefending any new ideas or vision.

Siemens. When Siemens CEO PeterLöscher was brought on board in 2007,

the company was strug-gling. In fact, manyobservers wonderedwhether Siemens had lostits competitive edge.

Löscher knew thatSiemens needed a newrepositioning strategy,more entrepreneurialism,and a dedication to cutting-edge innovation thatwould bring success in

emerging markets and 21st-centurymegatrends such as green technologyand infrastructure.

But Löscher also knew that he need-ed the right people. He realized thathis inspiring vision would go nowherewithout a strong bench of innovativeleaders in charge of the key businessunits he was depending on for growth.

Löscher and his team identified thetop positions and performed 500assessments at the senior managementlevel. This new leadership frameworkcontained all seven key leadership dimen-sions. The point was to identify top ex-ecutives’ strengths, and to ensure thatthey were deployed in the right place.

This approach ensured that capableleaders emerged to meet Löscher’svision. This year, Siemens extended itsassessment process to over 3,000 risingstars and used the results to place indi-viduals in the right positions, and tobuild robust, customized LD plans.

These efforts are paying off. In 2010Siemens increased its dividend by 70percent over the prior three years andwas bullish about future growth inemerging markets. LE

Jeffrey Cohn and Jay Moran are authors of Why Are We Bad atPicking Good Leaders? Visit www.pickingbetterleaders.com oremail jcohn@liag-advisors.com and jmoran@liag-advisors.com.

ACTION: Improve your selection process.

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 1 7

LEADERSHIP SELECTION

W h o i s t h e n e x t S t e v e J o b s ?

by Jeffrey Cohn and Jay Moran

nation letter to be written by (and sentfrom) the CEO. This will convey recog-nition, top-level commitment, andshow the individuals that they are onthe CEO’s radar screen. It will also cap-ture the attention of the participants’direct managers—creating the supportthey’ll need during the program.

3. Introduce participants to the pro-gram learning experience (and to eachother) weeks before the program begins.Conduct a conference call or bring par-ticipants together to congratulate themon their selection and explain the pro-gram’s learning objectives, components,and performance expectations. Have smallgroups of participants meet with select-ed senior executives for informal lun-cheons to establish an early dialogueand bonding. And, create an internalwebsite with participant pictures and bios.

4. Prepare the faculty or teachingteam. Whether utilizing external facul-ty or internal leaders as teachers, makesure each faculty member is ready forthe session. Educate external faculty onthe company history, strategy, and cul-ture before the program. Review currentissues that may be on people’s minds.Ensure that internal faculty practice theirpresentations (winging it results in poor

performance). Work with pre-senters in advance; reviewtheir slides, link their topic toa framework or model, andbrief them on the questionsthey’ll likely get. And, prepthe hotel or venue staff, aswell as other supportingplayers so that everythingruns smoothly, and partici-

pants have a first-class leadershipdevelopment experience.

5. Set a high bar for participation.Open the program with a provocativechallenge or dynamic reflective exer-cise—one that signals this is a differentkind of leadership program. Ask partici-pants to articulate two learning goalsin the first hour, without advancepreparation, to signal that you’ll chal-lenge them and that you expect themto take responsibility for their learning.Early on the first day, ask participants howthey’ll apply the learning—and repeat thisquestion during the program.

Paying attention to these five detailswill ensure that participants have thebest possible learning experience andwill position the LD program as a trueflagship event in your TM strategy. LE

Dave DeFilippo is CLO for BNY Mellon Asset Management(email david.defilippo@bnymellon.com) and Steve Arneson isPresident of Arneson Leadership Consulting (emailsteve@arnesonleadership.com).

ACTION: Launch development programs with impact.

Building LD Programs

WHEN JOHN WAS PRO-moted into man-

agement, he thoughtthat this was only the first of many pro-motions, but he was never promotedagain. He worked hard, but his teamconstantly fell short of expectations.

Under John’s leadership, severalissues reoccurred: repeated failure tomeet financial targets, high turnover,shrinking market-share numbers, anda stressful work environment. John didnot produce favorable results, and heseemed to lack the leadership compe-tencies required for career success.

So what was John missing? Johnand every leader should master sixcore leadership competencies:

1. Have unwavering character. Trustand respect are earned. Exceptionalleaders demonstrate their true charac-ter in their words, actions, and behav-iors. They are sincere, truthful, fair,embracing of diversity, respectful ofthe rules, non-hypocritical, and givecredit where credit is due. People wantto work for someone they trust andrespect. Loyal followers produce results.

2. Genuinely care. To achieve maxi-mum results, you must get the most outof all team members. Sincere and gen-uine interest earns loyalty—critical tothe success of your team. Caringmeans that you care about the people onyour team personally and professionally.You care about their performance,growth, advancement, success, role,health, safety, culture, work-life bal-ance, and the resources they need todo their jobs. You also care aboutaligning your values with companyvalues, preserving the culture, satisfy-ing customers, improving productquality, and engaging all stakeholders.

3. Use stellar communication skills.To engage your team, you must employeffectively several communication strate-gies, use appropriate techniques foreach situation, and be a good listener.Be clear, concise, and consistent whendelivering speeches; ask great ques-tions; develop and implement appro-priate focal points; speak to differentgroups at their level; be attentive toyour body language and the signalsyou send with your dress, office,

CUSTOM-DESIGNED LEADERSHIP DEVEL-opment programs are a core part

of any TM strategy. In fact, the multi-module high-potential program isoften the crown jewel of a develop-ment portfolio. When done well, par-ticipants and leaders (who often serveas faculty) rave about the program’soutcomes. But what makes for a suc-cessful program? How do you ensurethat the design, execution, and experienceall get an A from key stakeholders?

FFiivvee FFoouunnddaattiioonnssWhen launching the LD program,

integrate five elements:1. Develop a robust nomination

process. Creating a great LDprogram begins with pickingthe right participants. Ask yourCEO and senior leaders thetough questions about leader-ship requirements and yourcurrent leadership talent.What are the future leadershipneeds for meeting growth targets,competitive threats, or innova-tion goals, and what is the collective capa-bility of the leadership pipeline to meetthese needs? With that picture in mind,align the participant nomination processwith future leadership requirements.Ensure that senior leaders follow aformal, calibrated process for select-ing participants—one that produces aclass of leaders that is deserving ofthis investment. Facilitate the nomi-nations process—don’t delegate it.Get to know the qualifications of theparticipants. Ask these questions:Where do we see this nominee in the next12 to 18 months? How will the companysupport this individual outside of the for-mal LD program? Have we asked nomi-nees if they want to make this investmentin their development? The nominationsprocess should engage senior leadersto the point that they own the makeupof the program’s participants.

2. Make being selected a big deal.Make a big deal out the nominationannouncement. Arrange for the nomi-

1 8 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

Gain a Leader’s EdgeDevelop the six core competencies.

LEADERSHIP DEVELOPMENT COMPETENCY EDGE

by Randy Goruk

by David DeFilippo and Steve Arneson

You need to pay attention to detail.

thrive or languish. To kick-start growth,employees need to think independently andtake risks. People want more than a pay-check; they want to be fully engaged intheir work. Leaders need to model entre-preneurial behavior. Employees need tosee that entrepreneurs work hard notonly for money or fame but becausethey’re passionate about growth. Getexcited. Enthusiasm is infectious. Createa living, breathing, adaptable, fun culture.

3. Teach them the business. Put inplace a training program, a Boot Camp,and teach your employees the business. Fewpeople know how their employer oper-ates and makes money. Most trainingfocuses on specific skills people need todo their jobs. But once employeesknow how the business operates andtheir roles, they can more easily gaugetheir own contributions and add value.

4. Over-communicate. Be transparentand honest. You need to over-communi-cate, whether that means an internalblog, in-person meetings, or regular e-mail updates. Treat people like the entre-preneurs you want them to be—curiousand engaged, wanting to know every-thing about the business. Considersharing all information (excepting

salaries) to give allemployees intimate knowl-edge of the business.

5. Have fun—there ismore to work than justwork. Employees who areslogging through their jobswon’t have the passion,energy and excitement need-ed to take a company tothe next level. So, whetheryou’re celebrating mile-

stones, wins, birthdays or babies, takethe time to get together to enjoy oneanother and celebrate. Reward youremployees with psychic, not just finan-cial, compensation. Whether that meanspraise, appreciation, new challenges orautonomy, finding out what matters toyour people—and going out of yourway to provide it—is very motivating.

These five strategies can be imple-mented in any business. A decade ago,I felt like I was 100 percent responsiblefor the success of the company. Now, Iam standing shoulder to shoulder withmy Army of Entrepreneurs. We’ve transi-tioned from an owner-led practice to atrue team. We persevere through thebad times and come together to cele-brate our successes and growth. LE

Jennifer Prosek is CEO of CJP Communications and author ofArmy of Entrepreneurs: Create an Engaged and EmpoweredWorkforce. Follow her on Twitter and Facebook. Visitwww.ArmyofEntrepreneurs.com.

ACTION: Create an army of entrepreneurs.

ILEARNED THE HARD WAYthat no one person can

lead a company single-handedly. A decade ago, I bought out anowner of a small PR firm. I had bigdreams. PR was my passion, and Iworked six or seven days a week.

My efforts paid off, and we greweach year. But I was facing burnoutand was frustrated. My staff were goodpractitioners but didn’t seem to ‘’get’’the business and failed to make con-nections that could have resulted in newbusiness. I rarely saw the entrepreneur-ial behavior we needed to grow.

Then I asked myself a hard question:Had I ever taught them what they needed toknow to be successful? The answer wasno. I’m a natural entrepreneur, and Ithought people would just follow mylead. That wasn’t the case—and something had to change.

What I needed was anArmy of Entrepreneurs—agroup of rainmakers, inno-vators, creative thinkers,and problem solvers—tobuild the business together.We needed to ramp uptraining, communicate ourvalues, and empower peo-ple to develop an owner’smindset. Many building blocks existed;we just needed to create a cohesivestructure and simple expectations.

Did it work? Yes! During the GreatRecession, when 65 percent of PR firmslost revenue, we grew by aggressivelyseeking new clients, developing newrevenue sources, and excelling at intra-preneuring—expanding current accounts.

We jumpstarted growth by inspiring,developing and rewarding entrepreneur-ial behavior—in five ways:

1. Create an incentive that ties employ-ee compensation to business growth.With our Commission for Life program,every employee who introduces us to anew client receives a commission forthe entire time we retain that client. Theprogram, open to everyone, offers a bigpayoff but doesn’t require much effort.It attracts their attention and alterstheir behavior in a positive way.

2. Create an entrepreneurial culture.Culture is an ecosystem where people

Jumpstart GrowthWith an army of entrepreneurs.

by Jennifer Prosek

PERFORMANCE GROWTHactions, and facial expressions. Lever-age technology to share information,improve your presentations, write gen-uine personal notes of appreciation,and be available and visible.

4. Be a great thinker. Learn to thinkforward about how to achieve desiredresults and outcomes for stakeholders.By being a great thinker, you become agreat problem solver and problem avoider.You have a vision that is clearly articu-lated in a vision statement; you knowyour mission, and create meaningfulobjectives and strategies with achievableand realistic goals. You know when tochange and how to adapt to change.You develop plans and know how toimplement them. You anticipate situa-tions in advance, are unbiased in yourdecision making, know when it’s timeto change the rules, and honor yourvalues and company values. Think, plan,and act instead of constantly reacting.

5. Possess mental toughness. Learnto evaluate the situation, ask the rightquestions, and ultimately make thecorrect decisions. You are mentallytough when you are not distracted;you can remain clear and objective;and you have discipline of focus. Youare personally productive; you strive toeliminate time wasters, stick to yourplan, and seek work-life balance. Youare confident, consistent in actions anddecisions, and deal with conflict. Youfollow the rules but know when it’stime to change the rules. You don’t takethings personal, and you don’t let situ-ations you can’t control bother you.

6. Embrace accountability. Whenyou hold yourself and others account-able for results, behaviors, and perfor-mances, you become a more effectiveleader. You understand that you areaccountable for your performance andhold yourself accountable. You knowyou are not entitled, and you knowyou can delegate responsibility but notaccountability. You are not afraid tohold others accountable for their per-formance. You share good and badexamples of accountability with others,and you respect consequences. Leadwith a no-excuses accountability mindset.

To gain the leaders edge, enlist thehelp of a credible mentor or coach, andlearn from the mistakes of others. Dur-ing the day reflect on your performance,actions, and behaviors. Complete a lead-ership self-assessment or a 360-degreefeedback survey—and follow throughwith a personal action plan. LE

Randy Goruk develops leaders through his coaching, trainingand speaking. He is author of Sparks—A Business Fable. Emailrandy@LeadersEdge360.com or visit www.SparksTheBook.com.

ACTION: Develop these six core competencies.

L e a d e r s h i p E x c e l l e n c e A u g u s t 2 0 1 1 1 9

truly motivated, we have to believewhat we’re doing really matters. Whenleaders can define a compelling mis-sion that transcends each individual’sself-interest, they fuel high performanceand foster thinking creatively about howto overcome obstacles and generate solutions.

5. Provide the time. Creative think-ing requires relatively open-ended,uninterrupted time, free of pressure forimmediate answers and instant solu-tions. Time is a scarce, overburdenedcommodity in organizations that liveby the ethic of “more, bigger, faster.”Ironically, the best way to insure thatinnovation gets attention is to schedulesacrosanct time for it, regularly.

6. Value renewal. We aren’t meant tooperate continuously the way comput-ers do. We’re designed to expend energyfor short periods of time—no more than90 minutes—and then recover. The thirdstage of the creative process, incubation,

occurs when we step away from a pro-blem and let our unconscious work onit. Go on a walk, listen to music, medi-tate, or take a drive. Movement—espe-cially exercise that raises the heart rate—induces a shift in consciousness in whichcreative breakthroughs spontaneously arise.

7. Engage energy. In the corporateworld, engagement has come to signifysome blend of an employee’s commit-ment, passion, focus, motivation,morale and job satisfaction. It’s whatevery company wants, since we see astrong relationship between employeeengagement and organizational performance.

What most influences engagement?It’s the degree to which employers activelyinvest in meeting the multidimensional needsof their employees. That frees, fuels and in-spires people to bring their best to work.

We have four core needs beyond survival:• Sustainability (physical). Amazingly

few companies try to meet these needs. The

Energy Engagement

WHEN IBM RECENT-ly polled 1,500

CEOs, they rated cre-ativity as the most vital leadership compe-tency: 80 percent said business demandsnew ways of thinking, and less than 50percent said they were equipped todeal effectively with rising complexity.

To foster cultures of real creativityand innovation, senior leaders need tomake seven transformational moves:

1. Meet people’s needs. Recognizethat questioning orthodoxy and con-vention—the key to creativity—beginswith questioning the way people areexpected to work. How well are theircore needs—physical, emotional, mental,and spiritual—being met in the workplace?The more people are preoccupied byunmet needs, the less energy andengagement they bring to their work.So, ask employees, one at a time, whatthey need to perform at their best.Next, define what success looks like,and hold people accountable to specif-ic metrics; but let them design theirdays to achieve those outcomes.

2. Teach creativity systematically.Creativity isn’t magical—it can be devel-oped. There are five well-defined andaccepted stages of creative thinking:insight, saturation, incubation, illumina-tion, and verification. They don’t alwaysunfold predictably, but they do pro-vide a roadmap for enlisting the wholebrain, moving back and forth betweenanalytic, deductive left hemispherethinking, and more pattern-seeking,big-picture, right hemisphere thinking.

3. Nurture passion. The quickestway to kill creativity is to put people inroles that don’t excite their imagination.At an early age, kids who are encour-aged to follow their passion developbetter discipline, deeper knowledge,and are more persevering and moreresilient in the face of setbacks. Encour-age employees to follow their interestsand express their unique talents.

4. Make the work matter. People aremeaning-making animals. Money paysthe bills, but it’s a thin source of mean-ing. We feel better about ourselveswhen we make a positive contributionto something beyond ourselves. To feel

primary value most employers offeremployees is money, but even payingemployees far higher salaries is no guaranteethey’ll be engaged so long as their otherneeds aren’t met. Google does the bestjob of investing in the physical healthand well-being of employees.• Security (emotional)—meaning val-

ued, recognized, and appreciated. Lessthan 40 percent of employees world-wide feel their managers are genuinelyinterested in their well-being. Only oneout of 10 employees feel they’re treatedas vital corporate assets. The more ourvalues feel at risk, the more we become pre-occupied with defending and restoring them,and the less energy we have left to generatevalue for our companies. How people feelprofoundly influences how they perform.When we are performing at our best,we feel happy, positive, confident, opti-mistic—reflecting a high quantity and ahigh quality of energy. Leaders ought tobe evaluated on the degree to which theyevoke those feelings in those they lead.• Self-expression (mental)—the chance

to use our unique skills and talents andto figure out for ourselves how best toget our work done. Most employers telltheir employees when to come to work,when to leave, and how they’re expect-ed to work. Treated like children, manypeople adopt the role. They lose theconfidence and will to take initiative orto think independently. Empower andtrust employees to get their work done,and you’ll receive more appreciation,motivation and commitment. Measureyour employees by the value they gener-ate, not by the number of hours theywork, or how they get work done.• Significance (spiritual). We long to

feel that what we’re doing truly mat-ters. Most companies today have a loftymission and vision statement, and a nobleset of core values. But what gets writtenon paper counts for little. What inspiresus are leaders who visibly stand for some-thing beyond profit and enable us to getbehind a meaningful mission. You don’tneed to be curing cancer or solvingglobal warming. Zappos began by sell-ing shoes on line. But by deliveringgreat customer service and treating itsown employees equally well, CEO TonyHsieh and his team have created acompany with a powerful sense of missionand high employee passion and loyalty.

The companies that shift from seek-ing to get more out of their people to invest-ing in meeting their core needs, will buildhuge competitive advantage. LE

Tony Schwartz is CEO of The Energy Project and author of BeExcellent at Anything and The Way We’re Working Isn’tWorking (Free Press). Connect at Twitter.com/TonySchwartz.

ACTION: Meet tour people’s core needs.

by Tony Schwartz

2 0 A u g u s t 2 0 1 1 L e a d e r s h i p E x c e l l e n c e

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