score 2011
DESCRIPTION
ELA's presentation to St. Paul SCORE. Focus on building trust-based stakeholder relationships.TRANSCRIPT
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Ethical Leadership
Saint Paul SCORE
August 9, 2011
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“Business ethics is so…negative.”
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Empower others to improve the world
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Ethical Leaders in ActionLeadership Development Model
Leading
Self
Leading
Others
Leading
in Context
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Learning across contexts
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Among my teachers…
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Thinking about stakeholders
Investors
Employees
Vendors Customers
Partners
Competitors
Environment Communities
Arms-Length
Contractual
Fiduciary
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Relationships
may be
harder to
graph
than to
improve!
A More Realistic View of Stakeholder Diagrams
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The Old Employment Model:“Master-Slave”
Minimally constrained by human rights.
Employment at Will is a logical evolution from this view.
Eugene Genovese’s economic conclusion: slavery didn’t pay!
(The Political Economy of Slavery: Studies in the Economy
and the Society of the Slave South, 1965).
Not all
slavery
structures
were/are
the same.
The same
Is true for
employment
terms
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Measuring Engagement
• Retention
• Safety
• Customer Service
• Productivity
• Profitability
Source: Gallup Q12 Summary
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• Clear expectations for
performance
• Adequate materials
and equipment
• Ability to succeed
in assigned roles
• A supervisor who cares about subordinates
• Co-workers committed to quality work
• Opportunities to learn and grow
Source: Gallup Q12 Summary
Employee Engagement Drivers
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We are most likely to trust and
co-operate with individuals and
systems - whether we win or
lose - when we experience fair
process.
“Process”
includes
anything
from
giving
feedback to
a single FF
to setting
departmental
strategy
Kim & Mauborgne, Harvard Business Review, July – August 1997
Why think about “Fair Process?”
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• Engagement– Stakeholders invited to participate
– Participants have an opportunity to be heard
• Explanation– Process and rationale are clearly explained, along with
decisions and outcomes.
– Explanation is respectful – it is also often educational.
• Expectation Clarity– When decisions are made, implications for all
stakeholders are clearly articulated.
– Everyone knows what to expect, and what is expected
of them.
Fair
Process is
working
WITH
others
The Three Elements of Fair Process
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Fair Process does not mean:
• Democracy
• Consensus
• Happiness or Contentment
• Accommodation of individual wishes
or whims
• Command relinquishing legitimate
decision authority or accountability
• Just being nice
A good indication of a fair process is when people who do not
“get their way” understand why and how a decision was made,
and acknowledge that the process was fair.
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• Maintain control by keeping
employee’s at arms length.
• Substitute memos and forms
for direct, two-way
communication.
• Avoid challenges to their ideas
and authority.
• Believe that knowledge is
power and retain power by
keeping what they know to
themselves.
• Deliberately leave the rules for
success and failure vague.
The Misuse of Power
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Customer Expectations and Commitments
• What should our
customers expect from
us?
• Do we communicate
about those
expectations?
• How do we hold
ourselves accountable?
• How do we respond
when problems arise?
“Even if two customers are buying the same
product, they may want totally different
services wrapped around it.”
– VP, Customer Service,
semiconductor firm
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Challenge: engaging vendors
• What should your clients expect from their vendors?
• What should vendors expect of them?
• What do basic, healthy relationships look like?
• What about shared-destiny, strategic relationships?
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Ethical Dimensions of Competitors
• Ethical Duties:
– Comply with laws
– Refrain from manipulating legal/regulatory processes
• Competition can expand markets and validate
customer desire
• Competition can drive innovation, discipline, and
efficiency.
• Defeating competitors is an easy surrogate for the
pursuit of excellence.
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The oldest leadership seminar
• Safety and comfort
• Tactical information
• Problem-solving
• Strategic decisions
• Who are we???
If we
aren’t
telling
stories,
others
surely
are!
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Thank you for your attention!
Chad Weinstein
Ethical Leaders in Action, LLC
651-646-1512
“We enable ethical leaders to achieve
extraordinary results”