the leading from the heart workshop ® welcome to the age of corporate governance
TRANSCRIPT
The Leading from the Heart Workshop®
Welcome to the Age of Corporate Governance
“You will be confronted with
questions every day that test your morals. Think
carefully, and for your sake, do the
right thing.”
“Ex-Tyco Chief Executive Kozlowski Sentenced to 8 to 25
Years”Headline / Bloomberg.com / 09.19.2005
Strong Fundamental Values
“We must demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all company policies and laws.”Source: The Tyco Guide to Ethical Conduct
“We safeguard company assets.”
Regency mahogany bookcase, c. 1810, $105,000
George I walnut arabesque tallcase clock, $113,750
Custom queen bed skirt, $4,995
Custom pillow, $2,665
Ascherberg grand piano, c. 1895, $77,000
Chandelier, Painted Iron, c. 1930, $32,500
Pair of Italian armchairs, c. 1780, $64,278
Persian rug, 20 feet by 14 feet, $191,250
“In corporate America, crime pays.
Handsomely.
Grotesquely, even.”
Arianna Huffington Pigs at the Trough
“Ebbers’ luck runs out in sweeping victory for feds”Headline / USA TODAY / March 16, 2005
“Chretien takes fall for AdScam:
Gomery”Headline / Ottawa Sun / November 1, 2005
I said, “Ship the documents to the feds.”
She heard, “Rip the documents to shreds.”
“There’s a hole in the moral ozone and it’s getting
bigger.” Michael
Josephson
BERNARD EBBERS DENNIS KOZLOWSKI MARK SWARTZ SCOTT SULLIVAN HARRY STONECIPHER HANK GREENBERG JOHN RIGAS TIMOTHY RIGAS JEFFREY SKILLING KENNETH LAY ANDREW FASTOW
Brian Shapiro University of Minnesota
“”
It’s as if we have given the CEOs
weapons of mass destruction—at least
economically.
“The stock market boom may be over, but the business scandal boom is on.” James Ledbetter, Slate Monday, March 25, 2002
“No-Bid Contracts Bring Scrutiny to N.J.
Health-Sciences University”
Headline / Chronicle of Higher Education / 06.17.05
“These aren’t presidential
decisions. It’s micromanaging, and
it’s beyond my competence.”
Stuart D. Cook, former President University of Medicine and Dentistry of New Jersey
“A lot of this is nickel-and-dime stuff. I regard it, and
many of my colleagues regard it, as a real
distraction from the mission of the university.”
Emanuel Goldman Faculty Senate President,
UMDNJ
“New Study of High School Students Reveals High Levels
of Cheating, Theft and Cynicism Despite Stated
Convictions and High Self-Esteem Concerning Ethics,
Character and Trust”2004 REPORT CARD: The Ethics of American Youth
Josephson Institute of Ethics
“The inconsistency seems to be explained by high levels of cynicism about the ethics of successful people.”
Press Release Josephson Institute of Ethics
CYNICISM59 percent agreed that “in the real world, successful people do what they have to
do to win, even if others consider it cheating”
42 percent believe that “a person has to lie or cheat sometimes in order to
succeed”
22 percent believe that “people who are willing to lie, cheat or break the rules are more likely to succeed than people who
do not”
Press Release Josephson Institute of Ethics
ONLY HALF,ONE OUT OF TWO,
U.S. EMPLOYEES
TRUST THEIR
SENIOR LEADERS.
DO YOURS TRUST YOU?
Source: Watson Wyatt’s WorkUSA 2004 Survey
51%
“With fewer than half of employees expressing confidence
in senior management, no company has been left untouched by the fallout from recent turmoil
in the business environment.”
-Ilene Gochman, Ph.D., Watson Wyatt
Consistency between an organization’s stated values and the actual
behavior of its leaders is critical to credibility.
When there is discrepancy between what leaders say
and what they do, the leaders are exposed as
frauds.
used-car salesperson…slick
insurance agent…pushy
politician…dishonest
personal injury lawyer…greedy
postal worker…postal
business leader…justice-obstructing, debt-hiding, earnings-overstating thief who uses company funds to purchase personal artwork and to put on lavish birthday parties for
family members
People aresearching for leaders
with integrity who prove
their credibility
continuously.
Values-based
leaders demonstrate
six vital integrities.
They:
Accept challenges and take risks
Master both listening and speaking
Live by the values they profess
Freely give away their authority
Recognize the best in others
Have a vision and convince others to share it
Vital
Integrities
Leadership actions that, when practiced
proactively, demonstrate your organization’s
existing values and further establish your credibility
as a leader.
vital integrities
[1]Accept Challenges and Take Risks
values-based leaders:
Risk seeking separates values-based leaders from the yesteryear-theory
bureaucrats who sit around supervising the work. Why is that important?
Leadership is proactive, as people can only follow leaders who are moving.
Risk Seekers…while others seek out opportunities to lead.
Risk TakersSome people respond to challenges that are presented…
Other leaders are adventurers, continually placing themselves in positions to discover new challenges. They volunteer for the tough jobs and always question the status quo.
For most leaders, the opportunity to meet a
challenge is an assignment. Those
leaders rise to a presented challenge.
PROACTI V E
Leadership requires the courage to surround yourself with
employees who are potentially better at their jobs than you are
at yours.
Admitting Ignorance
By owning up to a lack of knowledge and deferring to their
expertise, you’ll show workers that you are willing to risk your
pride to get the job done.
PROACTI V E
“In a time of constant change, one thing hasn’t changed:
Organizations are still resistant to change.”
Pushing for Change
“The change agent of the old economy worked in an
environment where incremental change was all that was needed
—and all that was tolerated.”
Robert Reich
PROACTI V E
Challenging Bad Decisions
“If you are in middle management, don’t be a wimp.
Don’t sit on the sidelines waiting for the senior people to make a
decision so that later on you can criticize them over a beer—‘My
God, how could they be so dumb?’ Your time for participating is now.”
Andrew Grove, CEO Intel
PROACTI V E
“Leadership is going first in a new direction—and being
followed.”Andrew Grove
Volunteering to Go First
As a leader, you must summon the courage to chart the course,
venture into the unknown, challenge defeat, and risk
disappointment. Your initiative will encourage others.
“Doing what Ann and Liv did is much harder than reaching the peak of the mountain, flying a flag, and saying, ‘We’re heroes, take us to the parade.’”
Will Steger
“Real leadership is not about getting to the top. In this game, leadership is about coming back alive.” -Will Steger
How we
assess risk
determines
how we
take risk.
First, we weigh our chances of success.
Next, we measure the importance of success.
We also gauge how much control we have in the outcome.
We assess our own skill.
A values-based assessment should override all other assessments of risk. That is: does taking this risk demonstrate your adherence to the organization’s values, or not?
“I’m always wondering, how will I act at my
moment of truth? Will I rise
up and do what’s right, even if every
fiber of my being is telling
me otherwise?”
Ann Bancroft
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RiskSeeker
[2]Master Both Listening and Speaking
values-based leaders:
The way we communicate with our employees impacts how workers
understand our messages, and what actions, if any, they take in response.
vital integrities
Boyd Clarke and Ron CrosslandThe Leader’s Voice
“”
The biggest problem with leadership
communication is the illusion that it has
occurred.
disconnect synergy buy in TLA human capital quality circle good people dog & pony show ball park figure carpet vs. concrete work-in-process job ready paradigm shift quality circle rightsize fuzzy math outsourcing talk offline surplused just-in-time
jargonjargon
Jargon is a specialized vocabulary coined by, and intended for, a particular profession or discipline.
Industrial phrases, buzzwords, and acronyms are used as
verbal shorthand to streamline communication among
colleagues.
“Let’s talk offline after the MSA quality circle. We need to do some global thinking and examine best
practices to find synergy in our co-curricular activities. I’ll meet you later
in the living room of the campus to discuss a seamless, student-centered
solution to our disconnect.”
“Sure, I can tell you how to get to the VC. Turn left at the Green, go past the Quad, take a right at the
STAC, and continue past the Commons. You can’t miss it.”
“I pulled an all-nighter with ALICE and finished my
research paper. Now I’ve got to get over this netlag, because I’m planning on seein’ the Governor
tonight.”
“I gotta bounce to a chalk and talk taught by a TA who speaks
EFL. I hope that sage on the stage can keep me awake.”
“Say what?”
JARGON often includes
euphemisms used to substitute inoffensive expressions for those considered offensive.
These actions will “align our resources
with market needs and adjust the size of
our infrastructure.” – Chad Holliday, DuPont CEO
announcing the elimination of 3,500 jobs
why jargon?Speakers sometimes invoke workplace jargon to impress others, or to establish their membership in an elite faction. Some use jargon to exclude or confuse others, or to mask their own inexperience or lack of knowledge.
“Although jargon is used by bureaucrats of all kinds to facilitate
their own interactions, it seems to me that, in education, bureaucrats
additionally employ jargon to keep their real agenda (the socialization of
students) and their dismal academic results hidden from parents and
taxpayers.”
Barry Kavanagh, former Ontario college teacher
“The educational suitability assessments of this student’s official record of achievement indicate that
his outcomes have not been at a level deemed appropriate for
satisfactory completion of any of his courses. Therefore, he is not institutionally prepared.”
20 percentof employees are regularly confused about what their colleagues are saying, but are too embarrassed to ask
for clarification
More than a thirdadmitted using jargon deliberately—as a means of either demonstrating control or
gaining credibility
40 percentfound the use of jargon in office
meetings both irritating and distracting
One out of
ten
dismissed speakers using jargon as both pretentious and untrustworthy
Source: Office Angels
“It is impossible even to think without a mental picture.”
Aristotle On Memory and Recollection
358 B.C.
Hugh
Storiescreate the emotional
perspective listeners needto connect with your
message.
“The age-old secret to generating buy-in is to
strategically design, target, and deliver a story that projects a
positive future.”
Mark S. Walton Generating Buy-In: Mastering the Language of Leadership
[3] Live By The Values They Profess
values-based leaders:
Now, since the onslaught of corporate scandals, we conceive of business
leaders as justice-obstructing, debt-hiding, earnings-overstating thieves who use company funds to purchase personal
artwork and to put on lavish birthday parties for family members.
vital integrities
Values cannot simply be expressed in the words of a mission statement or marketing slogan. Values must be demonstrated in the leader’s character and actions.
1. Wal-Mart$288.2
2. Home Depot 73.1
3. Kroger 56.4
4. Costco 47.1
5. Target 46.8
6. Albertsons 39.9
Source: www.stores.com
Top 100 Retailers in 2004 Revenue in Billions
WAL MART >
HOME DEPOT + KROGER + COSTCO + TARGET + ALBERTSONS
“Even though small businesses are one of the fastest growing sectors of the economy, access to
capital remains a key barrier to growth for women- and
minority-owned businesses.” -Jay Fitzsimmons, senior vice president of finance and
treasurer, Wal-Mart
“We are lowering the costs to make health insurance more affordable.” Dan Fogleman
Wal-Mart Spokesperson
“For us, there is virtually no distinction between being a
responsible citizen and a successful business. They are
one and the same for Wal-Mart.”
H. Lee Scott Chief Executive, Wal-Mart
“These moves would also dissuade unhealthy people from coming to work
at Wal-Mart.”
Internal memo from Wal-Mart benefits director Susan Chambers
Source: Walker Information - Commitment In The Workplace: The 2003 National Employee
Benchmark Study
Workers who believe their organizations act with
integrity are nine times
more likely to stay in their current jobs.
Source: Walker Information - Commitment In The Workplace: The 2003 National Employee
Benchmark Study
But when they mistrust their bosses, or are ashamed of their organization’s
conduct,
workers say they feel trapped at work and are likely to leave their
jobs soon.
4 out of 5
“Employees are assets with feet. They’re the only resource companies have
that make a conscious decision to return the next
day.”
Press Release, Walker Information
EVERY DAY
REHIREyour employees
[4] Freely Give Away Their Authority
values-based leaders:
Why the emphasis on giving away authority? Giving authority to others demonstrates trust in people. Trusted
employees are more effective, creative, and satisfied. And a funny thing happens
when you trust people—they trust you back!
vital integrities
“Hierarchy is an organization with its face toward the CEO
and its ass toward the customer.”
-Kjell A. Nordström and Jonas Ridderstråle
Funky Business
Giving away our authority is a personal challenge. It involves sharing influence,
prestige, and applause, while forcing us to deal
with our personal insecurities.
Wally who?
Once you abandon those concerns, you
will recognize empowering others as
its own reward.
Manager: “But my employees don’t want to be empowered!”
The bottleneck is at the top of the bottle.
Gary Hamel
“
”
MicromanagersMicromanagers operate from a lack of trust—they distrust their employees—so they feel the need to maintain complete control. As a result, they set modest expectations for employees.
Highly negative managersThese leaders strip employees of their self-esteem. Employees may wrongly attribute their powerlessness to their own incompetence. To the delight of negative managers, their employees often feel too inadequate to seek other positions.
Poor communicatorsLeaders who are unable to explain the “big picture,” or simply don’t share their vision, deprive employees of an understanding of why certain actions are taken. S
TY
L E
“Not all malcontent employees are mavericks,
but virtually every maverick is a malcontent.”
Wayne Burkan, Wide Angle Vision
If you attribute free thinking to
disrespect, your personal biases and preconceptions may
result in missed opportunities.
disagreeordisrespect?
If your mindset makes every outcome a foregone conclusion,
your risk takers will stop challenging the status quo and you’ll find yourself left with a
staff made up of past perpetuators.
Ralph Nader
“”
I start with the premise that the function of
leadership is to produce more leaders, not more
followers.
[5]Recognize the Best in Others
values-based leaders:
Values-based leaders recognize that each person’s talents are unique and
that a person’s best opportunity for growth is in exploiting those strengths.
vital integrities
“Geeks are different from other people. If this comes as a shocking statement to you, you’re either oblivious
to others or unusually charitable with your opinion about others.” –Paul Glen, Leading
Geeks: How to Manage and Lead People Who Deliver Technology
Just when you understand the difference between a megahertz and a megapixel,
geeks start talking about link rot and packet jams.
GEEKSPEAK
Geeks resist mainstream or official authority structures.
They respect technical knowledge far more than
where a person resides on the organizational chart.
As leaders, we would prefer that geeks
behave like the rest of us. But our geeks’
personalities, even if grating to some, are
immaterial to their productivity.
greatness achieve
When we force our employees to strive for proficiency in everything, we miss the opportunity for them to
or mastery in something— in the one area where they may, indeed, achieve just that.
When striving for improvement, most of us do the same thing: we take our strengths for granted, and concentrate all our efforts on conquering our weaknesses.
The vast majority of organizations appear
to believe that the best way for
individuals to grow is to eliminate their
weaknesses. So they instruct workers to
recognize and focus on their deficiencies.
Gallop survey
question:
“At work do you have the
opportunity to do what you do best
every day?”
Strongly Agree (20
percent)
Strongly Agree
38 percent more likely to work in business units with higher
productivity
44 percent more likely to work in business units with high customer
satisfaction scores
50 percent more likely to work in business units with lower turnover
Source: Now, Discover Your Strengths Marcus Buckingham and Donald Clifton
Identifying each person’s strongest talents permits
everyone the opportunity to contribute what they do
BEST.
[6]Have a Vision and Convince Others To Share it
values-based leaders:
We often describe children as having wild or active imaginations. The best
leaders never outgrow their imaginative gift.
vital integrities
Have a
Vision
Good leaders have a vision. They
hold in their minds pictures of what is possible.
Vision is the power to
conceive a future that’s better
than the present.
Convince Others to Share
It
Great leaders convince others to share their visions by articulating them in memorable and inspirational ways.
Old story:Two stonemasons, working on the same project, are asked, “What are you doing?”
The first stonemason replies:
The second stonemason replies:
“I’m cutting stone.”
“I’m building a great cathedral.”
“I have a dream that one day this nation will rise up and live out the true meaning of its creed: ‘We hold these truths to be self-evident: that all men are created equal.’”
“I have a dream that one day this
nation will rise up and live out the true
meaning of its creed: ‘We hold
these truths to be self-evident: that all
men are created equal.’”
Martin Luther King, Jr.Delivered on the steps of the Lincoln Memorial
inWashington D.C. on August 28, 1963
Emphasized Common Values
“It is a dream deeply rooted in
the American dream.”
Described the Importance of the Values “And if America is to be a great nation, this must become true.”
vision’sopponents “I have a dream that one day down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification, one day right there in Alabama, little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.”
disparagedthe
FORECASTED SUCCESS“When we allow freedom to ring…we will be able to speed up that day when
all of God’s children, black men and white men, Jews and Gentiles,
Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual, ‘Free at last! Free at last! Thank God Almighty, we are free
at last!’”
“…we will not be satisfied until justice
rolls down like waters and
righteousness like a mighty stream.”
Adapted from Amos 5:24
Selected Emotional Language
“Let the nation and the world
know the meaning of our
numbers…we are not a mob. We
are the advance guard of a
massive moral revolution for jobs
and freedom.”Asa Philip Randolph
August 28, 1963
“No one could remember an invading army quite as gentle as the two hundred thousand
civil-rights marchers who occupied Washington today.
The sweetness and patience of the crowd may have set some
sort of national high-water mark in mass decency.” Russell Baker
“George wears his passions on his sleeve.
He needs to learn to hide his emotions from
his employees.”-From every performance review I’ve ever gotten
“Before you can inspire with emotion, you must be swamped with it yourself. Before you can move their tears, your own must flow. To convince them, you must yourself believe.”
Churchill
vital
integrities
values-based leadership
Accept challenges and take risks
Master both listening and speaking
Live by the values they profess
Freely give away their authority
Recognize the best in others
Have a vision and convince others to share it
SIX
Leadership is a craft, with the best
practitioners guided by their values.
The Leading from the Heart Workshop®
www.allsquareinc.com