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THEOUTWARDMINDSET

OTHERBOOKSBYTHEARBINGERINSTITUTE

LeadershipandSelf-DeceptionGettingoutoftheBox

TheAnatomyofPeaceResolvingtheHeartofConflict

THEOUTWARDMINDSET

seeingbeyondourselves

HOWTOCHANGELIVES&TRANSFORMORGANIZATIONS

TheArbingerInstitute

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FirstEdition

FirstEditionPaperbackprinteditionISBN978-1-62656-715-3PDFe-bookISBN978-1-62656-716-0IDPFe-bookISBN978-1-62656717-7

2016-1

Howmuchlargeryourlifewouldbeifyourselfcouldbecomesmallerinit.

G.K.CHESTERTON

Contents

PrefacePartISomethingNew

1ADifferentApproach2WhatShapesBehavior3TwoMindsets4SeeingTruthfully

PartIIExploringtheOutwardMindset5GettingoutofOurOwnWay6TheLureofInwardness7TheOutward-MindsetSolution

PartIIIBecomingMoreOutward8TheOutward-MindsetPattern9ApplyingtheOutward-MindsetPattern10Don’tWaitonOthers

PartIVMultiplyingMindsetChange11StartwithMindset12MobilizearoundaCollectiveGoal13AllowPeopletoBeFullyResponsible14ShrinkDistinctions15TurnSystemsOutward16TheRoadAhead

NotesListofStoriesIndexAboutTheArbingerInstitute

Preface

Thinkofthefollowingpeople:•Thethreepeopleinyourlifewhomyoumostlike•Thetwopeoplewho’vehadthemostpositiveinfluenceonyou•Yourbestboss

•Thepersonwhoinspiresyoutodoyourbest•Yourthreefavoritecoworkers•TheacquaintanceyoumostrespectAsyouthinkaboutthesepeople,considerwhyyoulikethem,respondwelltothem,workhardforthem,andreverethem.Ourguessisthatmanyofthepeopleyouarethinkingabouthavethisincommon:youfeelseenbythem.Somethingaboutthewaytheyseeandengagewithyoumakesyoufeelasifyoumatter.Youfeelthiswaywhenyouarewiththembecausetothem,youdomatter.Thisbookisaboutthischaracteristicyouadmireinothers—awayofseeingthatwecallanoutwardmindset.

Peopleoftenusethetermmindsettorefertoacorebeliefaboutoneself.However,inourexperienceoverthreedecadeshelpingindividualsandorganizations,thebiggestleverforchangeisnotachangeinself-beliefbutafundamentalchangeinthewayoneseesandregardsone’sconnectionswithandobligationstoothers.Thisbookisaboutthedifferencebetweenaself-focusedinwardmindsetandanothers-inclusiveoutwardmindset.Itwillhelpyoubecomemoreoutwardinyourwork,yourleadership,andyourlife.Itwillguideyouinbuildingmoreinnovativeandcollaborativeteamsandorganizations.Anditwillhelpyouseewhyyoulikemanyofthepeopleyoudoandwhatyoucandotobecomemorelikethem.

Thisbookcanbereadonitsownorinconnectionwithourearlierbooks,LeadershipandSelf-DeceptionandTheAnatomyofPeace.TheOutwardMindsetreflectsourlatestworkonmindsetchangeandshowsspecificallyhowtoenablemindsetchangewithinindividuals,teams,andfamiliesandacrossentireorganizations.

Whereasourearlierbooksunfoldasfictionalstories,TheOutwardMindsetis

composedofmultiplereal-lifestories—mostofthemfromourclients.Everychapterisbuiltaroundoneormoresuchstories.Wherecontextsuggestsanonymity,wehavechangednamesanddetailstoobscureidentities.

Developinganoutwardmindsetisamatteroflearningtoseebeyondourselves.Ourhopeforyou,thereader,isthatthisbookwillmakesuchmindsetchangecompletelytangibletoyouandthatyouwillachievetheresultsatworkandathomethatonlyanoutwardmindsetcanbring.

PARTI

SomethingNew

1•ADifferentApproach

TwoblackcargovanssnakedownWabashAvenueinKansasCity,Missouri.ThepassengersaremembersoftheKansasCityPoliceDepartment(KCPD)SWATteam.Theyareabouttoserveahigh-riskdrugwarrant—thefifthwarrantserviceofthatday.Thetargetsofthiswarrantaresufficientlydangerousthatthesquadhasobtaineda“no-knock”warrant,meaningthattheywillstormthroughthedoorunannounced.Themenaredressedinblackfromheadtotoe,theirfacescoveredbymasksthatleaveonlytheireyesexposed.Bullet-resistanthelmetsandbodyarmormakethemanintimidatingsight.

SeniorSergeantCharles“Chip”Huth,leaderofthe1910SWATSquadforeightyears,isdrivingtheleadvan.Heslowsasthetargetresidencecomesintoview,andhismenstreamfrombothvehiclesasquietlyandquicklyastheycan.

Threeofficerssprintaroundtothebackofthehouseandtakecover,supplyingcontainmentshouldthetargetsattempttoflee.Sevenothers,includingChip,runtothefrontdoor,sixofthemwiththeirgunsdrawn.Theseventhrunsawell-usedbatteringramuptothedoorandslamsitthrough.

“Police,”theyyell.“Everybodydown!”Insideisbedlam.Menattempttoscrambleoutoftheroom,sometothestairsandothersdownhallways.Youngchildrenstandasifparalyzed,screaming.Anumberofwomencowerinterroronthefloor,someofthemshieldinginfantswhoarescreamingatthetopoftheirlungs.

Twoofthemen—thetwosuspects,itturnsout—gofortheirweaponsbutaretakendownbyofficers.“Don’teventhinkaboutit!”theofficersshout.Thentheypullthemen’sarmsbehindthemandputthemincuffs.

Withalltheyoungchildren,thesceneinthishomeismorehecticthanmost,butwithinfiveminutes,thetwosuspectsliefacedownontheliving-roomfloor,andtherestoftheinhabitantshavebeengatheredintothediningroom.

Witheveryone’ssafetysecured,theofficersbegintheirsearch.Theymovewithpurposeandprecision.Chipnoticeshispointman,BobEvans,leavingtheroom,andheassumesBobissimplyjoiningthesearch.

Acoupleofminuteslater,Chippassesthekitchenashewalksdownthehall.Bobisstandingatthekitchensink.Amomentearlier,Bobhadbeenrifling

Bobisstandingatthekitchensink.Amomentearlier,Bobhadbeenriflingthroughthekitchencabinetslookingforwhitepowder—notforcontrabandtobeusedasevidenceagainstthosetheyarearrestingbutforawhitepowderthatwasofmuchgreaterimmediateimportance.HewaslookingforSimilac.Withbabiescryingandtheirmothersunderstandablyinhysterics,thismostalphamaleofallthealphamalesonChip’ssquadwaslookingforawaytohelpthem.WhenChipseeshim,Bobismixingbabybottles.

BoblooksatChipwithafaintsmileandshrugs.Hethenpicksupthebottlesandbeginsdistributingthemtothemothersofthecryinginfants.Chipisdelightedbythis.Hehadn’tthoughtofbabybottleshimself,buthecompletelyunderstandswhatBobisuptoandwhy.

Thisoneactofresponsivenesschangedtheentirescene.Everyonecalmeddown,andChipandhismenwereabletoexplainthesituationthoroughlyandthensmoothlyturnthetwosuspectsovertothedetectives.Nevertheless,mixingbabybottleswassuchanunusualandunpredictableactthatmanypeopleinpolicework—includingthemembersofthisSWATteamjustafewyearsearlier—wouldhaveconsidereditirrational.ButinChip’ssquad,thiskindofresponsivenessisroutine.

Itwasn’talwaysthisway.Toappreciatetheremarkabletransformationthathadcometothe1910SWATSquad,weneedtolearnalittleofChip’schallengingbackgroundandhishistoryintheKansasCityPoliceDepartment.

Chipwasbornin1970,thesonofanalcoholic,abusivecareercriminalandabipolar,schizophrenicmother.WhenChip’sfatherwasaround,thefamilyusuallywasrunningfromthelaw—movingfromstatetostatearoundtheSouth.Whenhisfatherwasabsent,Chip,hissiblings,andtheirmotheroftenlivedoutofacar,collectingcansandcardboardforrecyclingasawaytosurvive.

Onetimewhenhisfatherreturned,promisingthatthingswouldbedifferent,hisabuseofthefamilyescalated.Chip,agetenatthetime,stooduptohim,andthisfinallypromptedChip’smothertocalltheonepersonherhusbandfeared—herex–SpecialForcesbrother,whocametowrestthefamilyawayfromtheman.“I’mheretogetmysisterandthekids,”hetoldChip’sfather.“Ifyougetupoffthatcouch,it’sgoingtobethelastthingyoueverdo.”ThatwasthelasttimeChipsawhisfather.

Chip’sfatherhatedcops,whichistheprimaryreasonChipbecameone.HejoinedKCPDin1992.Afterthreeyearsasapatrolofficer,hewasmovedtoaSWATteam.Fouryearslater,hejoinedthepoliceacademyasause-of-forceandfirearmsinstructor.HewaspromotedtoSWATsergeantin2004.Thechief

ofpolicethoughtthatthe1910and1920SWATSquads,whichactasthestrongarmoftheInvestigationsBureauofthepolicedepartment,wereoutofcontrol.Chipcameinasahatchetmantofixthem.

Whatthechiefmaynothaveknown,however,wasthatatthetime,Chipwaspsychologicallybettersuitedtoleadsuchagroupthanhewastochangeit.Hemadesuretooutworkallhismensothathecouldkicktheirbuttsifnecessary.Wheneverhefeltthreatened,herespondedwiththreatsofviolence,andhewasjustunstableenoughthathisteammemberswerekeptinline.

Hewasevenmoreseverewiththepublic.Thewayhesawthings,therereallyarebadguysintheworld(heshouldknowsincehegrewupwithone),andtheyneedtobedealtwithinawaythatmakesthemsorrytheyevercommittedacrime.Everyonetheteammembersarrested,theytookdownhard.Andtheydidn’tmuchcarehowtheytreatedpeople’spropertyorpets.Itwasn’tuncommonforsomeofChip’smentospittobaccoonsuspects’furniture,forexample,ortoputabulletthoughtheskullofapotentiallydangerousdog.

Chip’ssquadwasoneofthemostcomplained-aboutunitsinKCPD.Someofthatwastobeexpected,sinceSWATofficerstendtodomoredamagethanregularofficersonthestreet.Butevenso,therateofcomplaintsagainstthesquadwasalarming,andthecostoftheassociatedlitigationwasadrainonthedepartment.Chipdidn’tseeaproblemwiththis.Hebelievedhissquadwasworkingwithpeopleintheonlywayitcould.Infact,hethoughtthemorecomplaintsheandhissquadreceived,themoreprooftheyhadthattheyweredoingsomethingright!

AcoupleofyearsafterChiptookovertheSWATsquad,anotherKCPDofficer,JackColwell,helpedChipseesometruthsabouthimselfthatstartledhim—aboutthepersonChiphadbecomeandhowhisattitudeandmethodswereactuallyundercuttinghiseffectivenessandputtinghismenandtheirmissionsatrisk.ThisrevelationcoincidedwithatroublingencounterChiphadwithhisfifteen-year-oldson.Drivinghissonhomefromschooloneday,Chipcouldtellthatsomethingwasonhismindandbeganaskingquestionafterquestionofhisson,withnoresponse.“Whywon’tyoutellmewhat’sbotheringyou?”Chipasked.“Youwouldn’tunderstand,”hissonresponded.“Why?”Chipasked.ThenhissongaveChiptheanswerthatperhapspreparedhimtohearwhatJackhadtosay:“Becauseyou’rearobot,Dad.”

Thiscommentcutdeep.Chipbeganthinkingaboutthekindofpersonhehadbecome.Hehadbelievedthatsuspicionandaggressionwerenecessaryforsurvivalandsuccessinavicious,combative,andviolentworld.Butnowhestartedtoseethatbeingthiskindofpersondidnotputastoptotheviciousness

startedtoseethatbeingthiskindofpersondidnotputastoptotheviciousnessandcombat;itactuallyacceleratedit.

TheseeventsstartedChiponajourneyofchange,anendeavorthatresultedinacompletetransformationoftheworkofhissquad.Theteamusedtoreceivetwotothreecomplaintsamonth,manyofthemregardingexcessiveuseofforce.Onaverage,thesecomplaintscostthedepartment$70,000perincident.However,becauseoftheteammembers’newwayofworking,theyhaven’thadacomplaintfiledagainsttheminsixyears.Itisrare,now,thattheyleaveothers’personalpropertyinshamblesorshootadog.Theyevenhiredadogspecialisttoteachthemwaystocontrolpotentiallydangerousanimals.Andtheyneverspittobacco.Chiptoldhismen,“Unlessyoucantellmethatchewingtobaccoinpeople’shomesadvancesthemission,we’renotdoingthatanymore.”And,ofcourse,theypreparebabybottles.

ThesechangeshaveincreasedthecooperationChipandhisteamreceivefromsuspectsandfromthecommunity,andtheresultshavebeenastounding.Inadditiontoshrinkingcommunitycomplaintsagainstthemtozero,inthefirstthreeyearsafteradoptingthisapproach,the1910SWATSquadrecoveredmoreillegaldrugsandgunsthanithadinthepreviousdecade.

Whattransformedtheteam’sapproachandeffectiveness?Adifferentkindofmindsetthanthememberseverhadbefore:awayofseeingandthinkingthatwecallanoutwardmindset.

MarkBallifandPaulHubbard,co-CEOsofahighlyrespectedhealthcarecompany,havebuilttheirorganizationutilizinganoutward-mindsetapproachsimilartotheoneChiphasusedwithhissquad.Afewyearsago,theyweremeetingwiththeprincipalsofavenerableprivateequityfirminNewYorkCity.With32percentand30percentcompoundannualgrowthratesintop-linerevenueandprofitability,respectively,overthepriorfiveyears,gettingmeetingslikethisonewithpotentialcapitalinvestorshadn’tbeendifficultforMarkandPaul.

“Soyouhaveturnedaroundoverfiftyhealthcarefacilities?”thefirm’smanagingpartnerasked.

MarkandPaulnodded.“How?”MarkandPaullookedateachother,waitingfortheothertoanswer.“Itall

hingesonfindinganddevelopingtherightleaders,”Markfinallysaid.“Andwhatisthemostimportantqualificationyoulookforinaleader?”Mark

andPaulfeltasiftheywerebeingcross-examined.

“Humility,”Paulanswered.“That’swhatdistinguishesthosewhocanturnthesefacilitiesaroundfromthosewhocan’t.Leaderswhosucceedarethosewhoarehumbleenoughtobeabletoseebeyondthemselvesandperceivethetruecapacitiesandcapabilitiesoftheirpeople.Theydon’tpretendtohavealltheanswers.Rather,theycreateanenvironmentthatencouragestheirpeopletotakeontheprimaryresponsibilityforfindinganswerstothechallengestheyandtheirfacilitiesface.”

Theothermembersoftheequityfirminthemeetinglookedatthemanagingpartner,whosatpoker-faced.

“Humility?”hefinallysaid,histonecondescending.“You’retellingmethatyou’veacquiredfiftyfailingfacilitiesandturnedeachofthemaroundbyfindingleaderswhohavehumility?”

“Yes,”MarkandPaulrepliedwithouthesitation.Themanagingpartnerstaredatthemforamoment.Thenhepushedhischair

backfromthetableandrosetohisfeet.“Thatdoesn’tcomputetome.”Withlittlemorethanahandshake,heturnedandstrodeoutoftheroom,leavingbehindacompellinginvestmentopportunityinacompanywithaproventrackrecord.Whathecouldn’tcomprehendwashowthecompany’sresultsdependedonhumbleleaderswho“seebeyondthemselves,”asPaulhaddescribed.

Nearlyfifteenyearsearlier,Mark,Paul,andanotherearlypartnerdecidedtotrytheirhandatbuildingtheirowncompany.Theyhadlessthantenyearsofexperienceinhealthcarebetweenthem,buttheysawanopportunitytocreateauniqueorganizationinanindustryplaguedwithproblems.Sotheybeganpurchasingtheclinicallyandfinanciallybeleagueredfacilitiestheircompetitorsweredesperatetoberidof.Theywereconvincedthatthekeymissingingredientinfailinghealthcareoperationswasnotanabsenceoftherightpeopleoreventherightlocationbutanabsenceoftherightmindset.Theyengagedinasystematicapproachtoapplytheprinciplesthatarepresentedinthisbook.

Markexplainstheirexperiencethisway:“Someofourcompetitioncouldn’tgetridoffacilitiesandtheirteamsfastenoughbecausetheythoughtthattheteamsweresimplydefective.Ourthesiswasthatwecouldtakeapoorlyledandthereforeunder-performingfacilityand,byhelpingtheexistingteamseewhatwaspossible,theycouldturnitaround.”

Astheyacquiredtheirfirstfacilities,theyencounteredapatternthatwouldrepeatitself,almostwithoutexception,acquisitionafteracquisition.Theoutgoingleader,tryingtodothemafavor,wouldgivethemalistofthefiveorsostaffmemberstheywouldneedtofireiftheystoodanychanceofturningthingsaround.“Wewouldthankthemforthelistandthengotowork,”Pauland

thingsaround.“Wewouldthankthemforthelistandthengotowork,”PaulandMarkreminisced.“Invariably,fourofthefivepeoplewouldturnouttobeourbestperformers.”

Considerwhatthisdemonstrates.Ifthosewhohadbeenidentifiedasproblemscould,whenworkingundernewleadershipandanewapproach,becomestarperformers,thenorganizationalimprovement,eventurnaround,islessamatterofgettingthewrongpeopleoffthebusthanamatterofhelpingpeoplesee.Itisamatterofchangingmindset.

“Leadersfail,”Paulexplains,“bycominginsaying,‘Here’sthevision.NowyougoexecutewhatIsee.’That’sjustwronginourviewoftheworld.”Continuing,hesays,“Althoughleadersshouldprovideamissionorcontextandpointtowardwhatispossible,whathumble,goodleadersalsodoistohelppeoplesee.Whenpeoplesee,theyareabletoexercisealltheirhumanagencyandinitiative.Whentheydothat,theyowntheirwork.Whenpeoplearefreetoexecutewhattheysee,ratherthansimplytoenacttheinstructionsoftheleader,theycanchangecourseinthemomenttorespondtoever-changing,situation-specificneeds.Thatkindofnimblenessandresponsivenessissomethingyoucan’tmanage,force,ororchestrate.”

MarkandPaullearnedtheselessonsearlyonastheyoperatedtheirfirstfewfacilitiesthemselves.Readingsituationsattentively,theyfoundthemselvesmixingplentyofbabybottles—takingresponsibilitytodowhatevereachsituationrequired.Astheyacquiredmorefacilities,theyneededotherleaderswhocouldoperatewithanoutwardmindset—peoplewhowouldmixbabybottlesasnecessaryandhelpotherslearntodothesame.

Thisbookisabouthowtohelpunlockthiskindofcollaboration,innovation,andresponsiveness—howtoexperienceawayofseeing,thinking,working,andleadingthathelpsindividuals,teams,andorganizationssignificantlyimproveperformance.

Atfirst,youmightfeelliketheprivateequityfirmleaderwhowalkedoutofthemeetingwithMarkandPaul.Theideaswewillcovermaynotmakeperfectsensetoyouearlyon,andyoumightwonderwhethertheseconceptscanhelpyouwiththechallengesyouarecurrentlyfacing.Weinviteyoutostayinthemeeting.Youwilllearnanactionable,repeatable,andscalablewaytotransformyourpersonal,team,andorganizationalperformance.

Justasimportantly,youwillbeginseeingsituationsoutsideofworkdifferentlyaswell.Youwillseenewandbetterwaystointeractwiththoseyoucaremostabout,includingthoseyoufindmostdifficult.Everythinginthisbook

thatappliestopeopleinorganizationsappliestopeopleintheirhomeandfamilylivesaswell—andviceversa.Thisiswhyweincludecorporate,home,andindividualstories.Lessonslearnedfromeachwillapplyacrosstheboard.

OurjourneybeginswithanideathatChip,Mark,andPaulbelievetobefoundational:mindsetdrivesandshapesallthatwedo—howweengagewithothersandhowwebehaveineverymomentandsituation.

2•WhatShapesBehavior

Countlessbooksonpersonalimprovementandorganizationaltransformationrecountthebehaviorsandactionsofpeoplewhohaveachievedremarkableresultswiththepromisethat,byreplicatingtheirbehaviors,youcanachievesimilaroutcomes.Thisformulaicapproachtoimprovementtakesasitsstartingpointthesimpleideathatbehaviorsdriveresults.Thisideaisillustratedindiagram1:thebehavioralmodel.Inthisdiagram,thetrianglerepresentsaperson’soranorganization’sbehaviorsoractions.Themodelpresumesthatthecollectivebehaviorsofapersonororganizationarewhatproducetheresultsthatpersonororganizationachieves.

Diagram1.TheBehavioralModel

Theideathatbehaviorsdriveresultsseemsalmostself-evident.Buthowmanyofushavetriedtoreplicateabehavioralformula—adoptingthesameleadershippracticesormimickingthesameinterpersonalapproachesofthosewhohaveachievedenviableresults—onlytothrowupourhandsinfrustration?

“Well,thatdidn’twork!”Theseexperiencessuggestthatwhatisimpliedbythismodelismisleading.

Wewanttosuggestthatthemodelismisleadingforatleasttworeasons.Consider,firstofall,asimplestory.Apersonwe’llcallMiaattendsa

workshoponimprovingcommunication.Overthecourseoftwodays,shelearnsanarrayofnewskills.Shelearnstoaskmoreopenandinvitingquestions.Sheistaughthowtorespondwhensomeonebecomesverballyaggressiveor,ontheotherhand,whensomeonebecomesevasiveorcompletelyshutsdown.Shepracticesparaphrasingwhatotherssaytodemonstratethatsheispayingattention.Shelearnstousemoretentativelanguagetoinvitebetterresponsesfromothers.Shealsolearnshowtoofferbetternonverbalcues:presentingapleasantlookanddemeanor,maintainingbettereyecontact,andsoon.

Miareturnstoworkdeterminedtoputherlearningintopractice.Inparticular,shewantstoseeiftheseskillswillhelpherinherinteractionswithacolleaguenamedCarl,withwhomshehasstruggled.ThetruthisthatsheverymuchdislikesanddistrustsCarl.Shetensesupwheneverheisaround.

WhatdoyouthinkislikelytohappenwhenMiabeginstoapplythesenewskillsinherconversationswithCarl?CouldMia’sbehavioralchangesmakeherseemsodifferenttoCarlthattheirinteractionswillsignificantlyimproveasaresult?Perhaps.However,MiaislikelytofeeldifferenttoCarlonlytotheextentthatsheactuallyfeelsdifferentlyaboutCarl,regardlessofwhatnewskillssheusesorbehaviorssheadopts.

IfMiafeelsthesamewayaboutCarlasshealwayshas,andifCarlsensesthis,hemightbegintowonderwhatMiaisupto.Hemightevengetupset,feelingthatMiaistryingtohidesignificantissuesbeneathaveneerofsuperficialchange.

IfCarlweretorespondtoMiainthisway,onewouldsaythatthenewbehaviorsMiaadoptedendedupnotmakingmuchofadifference.Infact,thewholeexperiencecouldevenincreasethetensionbetweenthem.Mia’snewandbetterskillscouldresultinworseoutcomesratherthanbetteroutcomes.

Thisdoesn’tmeanthatMia’snewskillsweredamaginginandofthemselves.Itdoessuggest,however,thatsomethinginadditiontobehaviorplaysanessentialroleinbothoursuccessesandourfailures.Andifthat’strue,thentheeffectivenessofourbehaviorsdependstosomesignificantdegreeonsomethingthatisdeeperthanbehavior.Thebehavioralmodeldoesn’taccountforthis.Consequently,themodelisincompleteandthereforemisleading.

Thebehavioralmodelismisleadingforasecondreasonaswell.Toconsiderhow,let’sthinkaboutChipHuthandhisSWATsquad.Theirstoryispowerful

how,let’sthinkaboutChipHuthandhisSWATsquad.Theirstoryispowerfulinpartbecauseitissosurprising.Wedon’timagineSWATofficersstoppinginthemiddleofanoperationtomixbabybottles.It’snotjustthatmostSWATofficerswouldchoosenottomixbabybottles;it’sthattheveryideawouldneveroccurtotheminthefirstplace.Whynot?Becauseitisnotanideathatwouldspringfromtheprevailingmindsetsofmostpeoplewhooperateinthatkindofrole.

Thewayweusetheterm,mindsetismorethanabeliefaboutoneself.Itreferstothewaypeopleseeandregardtheworld—howtheyseeothers,circumstances,challenges,opportunities,andobligations.Theirbehaviorsarealwaysafunctionofhowtheyseetheirsituationsandpossibilities.

Sowearesuggestingtwocoreproblemswithapurelybehavioralapproachforimprovingperformance:

1.Likeseeingtheneedtomakebabybottles,thebehaviorspeoplechoosetoengagein(thattheysensearerightandhelpfulgiventheirsituation)willdependonhowtheyseetheirsituationandthosewithwhomtheyinteract.Sowhilebehaviorsdriveresults,behaviorsthemselvesareinformedandshapedbyone’smindset.

2.AsinMia’sstory,inwhateverapersondoes,hisorhermindsetcomesthrough,andothersrespondtothiscombinationofbehaviorandmindset.Thismeansthattheeffectivenessofanindividual’sbehaviorswilldependtosomesignificantdegreeonthatindividual’smindset.

Wecapturetheserealitiesindiagram2:themindsetmodel.Intheareaoforganizationalchange,whatdoesthemindsetmodelsuggest?Itatleastsuggeststhatchangeeffortsbuiltupontheincompletebehavioral-modelapproach,whereapersonororganizationtriestoimproveperformancebyfocusingonlyonbehaviorchange,willfailmuchmoreoftenincomparisontoeffortsthatfocusonchangingbothbehaviorandmindset.

StudiesconductedbyMcKinsey&Companycorroboratethis.Onestudyfindsthat“failuretorecognizeandshiftmindsetscanstallthechangeeffortsofanentireorganization.”1AsecondMcKinseystudyfindsthatorganizationsthat“identifyandaddresspervasivemindsetsattheoutsetarefourtimesmorelikelytosucceedinorganizational-changeeffortsthanarecompaniesthatoverlookthisstage.”2Thinkaboutthat.Thosewhoattempttoeffectchangebyconcentratingonchangingmindsetsarefourtimesmorelikelytosucceedthanthosewhofocusonlyonchangingbehavior.

Diagram2.TheMindsetModel

Withthesefindingsinmind,considertwodifferentperformance-improvementapproaches.Inthefirstapproach,apersonororganizationattemptstopushbehaviorchangewhileneglectingmindsetchange,asshownindiagram3onthenextpage.

Ifapersonorcompanytriestogetpeopletoadoptnewbehaviorsthataren’tsupportedbytheirunderlyingmindset,howsuccessfuldoyouthinksuchachangeeffortwillbe?

Inresponsetothisquestion,oneexecutiveweweremeetingwithsaid,“Someleaders,throughcharisma,willpower,orconstantmicromanaging,maybeabletodrivethiskindofchangeintheshortterm,evenwithoutanaccompanyingdegreeofmindsetchange.Butinmyexperience,itwon’tlast.Whenthatleaderleaves,ifnotsooner,thingswillsnapbacktowheretheywere.”

Diagram3.TheBehavior-PushApproach

Othersinthemeetingagreed.“Withoutachangeintheprevailingmindsetinanorganization,”oneofthemsaid,“behavior-changeeffortstendtoberesisted.While‘compliant’behaviorbyemployeesmightbeachievable,atleasttosomedegree,‘committed’behaviorwon’thappenwithoutachangeinmindset.Andit’scommittedbehaviorthatmakesthebiggestdifference.”

Isthesamethingtrueinyourexperience?Inyourworklifeandinyourhomelife,whathaveyounoticedhappens(ordoesn’thappen)whenpeopletrytopushbehaviorchangeinaculturewherethemindsetremainsunchanged?

Contrastthebehavior-pushapproachwithanapproachthatincludesafocusonmindsetchange.Diagram4showstheapproachChipinitiatedwithinhisSWATsquadwhenhestartedworkingonmindsetchange.

AfocusonmindsetchangeamongChip’steammembersledtodramaticimprovementsintheirbehaviorsandresults.Astheirstoryillustrates,whenyousufficientlyimprovethemindset—eitherofanindividualorofanorganization—younolongerhavetospecifyeverythingeachteammemberissupposedtodo(thewaythosewhooperatefromabehavioralmodeloftenassume).Asthemindsetchanges,sodoesthebehavior,withouthavingtoprescribethechange.

Andwherecertainbehaviorsstillneedtobestipulated,thesuggestionswon’tbesystematicallyresisted.Forthesereasons,mindsetchangefacilitatessustainablebehaviorchange.

Diagram4.TheLeading-with-MindsetApproach

Moreover,asthemindsetchanges,peoplebeginthinkingandactinginwaysthathadn’tbeenimaginedbefore.Chiphadneverthoughtaboutascenariowherehisteammightneedtopreparebabybottlestohelpmotherscalmscreamingchildren.Consequently,he’dnevertaughtormentionedthistohisteam.However,becausehehadputintheefforttoestablishadifferentmindsetinthemembersofhisteam(beginningwithhisown),hedidn’thavetothinkaboutormandateitinadvance.Whenthisnewandunanticipatedsituationcameup,oneofhismenthoughtoftherightthingtodoonhisown.Theunderlyingmindsetpromptedthemosthelpfulbehaviorsinthemoment.

Inthenextchapter,webegintoexplorethemindsetthatmakesthispossible.

3•TwoMindsets

LouiseFrancesconiwaspresidentofoneofthelegacyHowardHughescompaniesduringaperiodofconsolidationwithinitsindustry.Thecompany’schiefcompetitorhadrecentlypurchasedthecompanyLouiseled.Afterthepurchasecameadirective:Louiseandherexecutiveteamhadtocut$100millionfromthecostsideofthebusiness.Theyweregiventhirtydays.Thisdirectivecamewithanimplied“orelse.”Louiseaskedustohelpthemwiththischallenge.

YoucanimaginethepressureonLouiseandherleadershipteam.Theacquiringcompany’sexecutiveswereabouttodeterminetheirimmediatecareeropportunities.Cutting$100millionwastheirjobinterview.

SothemembersofLouise’steamhadnochoicebuttodeliver,notjustonthisgroupdirective,butalsointheirindividualcapacitiesasleadersofseparateproductlines.Notsurprisingly,thiscreatedtensionwithintheteam:theexecutivesfocusedonhowtheyeachcouldpreservetheirownpartsofthecompany,implyingthattheircolleaguesshouldshoulderthebulkofthecost-cuttingburden.Theydidnotsaythisdirectlytooneother,butitbecameclearastheyeachbriefedtheteamonwhattheythemselvescoulddotocutcosts.Theyallofferedtokencutsintheiroperationalareas,combinedwithwell-preparedargumentsforwhyfurthercutswouldbedamagingtothecompany.Toaperson,theyagreedthattheonlywaytocut$100millionwastolayoffabunchofpeople.Andeachofthemwantedthoselayoffstocomeprimarilyfromothers’partsofthebusiness.

Thesituationwasn’tgoinganywhere,andLouisegrewfrustrated.Sheknewtheyweregoingtofind$100milliontocut.Theyhadto.Butitwasgoingtobepainful,andsheworriedaboutwhatthatmightdotoherteamandthecompanygoingforward.

Inourworkwithorganizations,wehaveseenthiskindofimpassemanytimes.Atitsheart,theproblemisprettysimple:incentivestructures,companymetrics,careergoals,andpersonalegosallconspiretokeeppeoplefocusedonthemselvesandtheirownperceivedneedsandchallenges,usuallytothedetrimentoftheteamandtheenterprise.Inshort,organizationsandtheirpeoplegetinwardlyfocused,andasaresult,theygetstuck.

getinwardlyfocused,andasaresult,theygetstuck.FortunatelyforLouiseandherteam,theyfoundawaytogetunstuck.Two

veryimportantincidentsoccurredthatenabledthistohappen.Thefirstwasthatthegroupbegantoconsiderwhowouldbeaffectedbylayoffsifthatwastheroutetheydecidedtogo.Onaflipchart,theseexecutivesbeganlistingthosemostlikelytobeaffected.Aseachcategoryofpersonswasaddedtothelist,theteamdiscussedwhatlayoffswouldmeanforthatgroup.

Earlyon,thisconversationfeltstrained.Theyweretalkingaboutpeople,notbecausetheywereinclinedto,butbecausethey’dbeenaskedto.Butasthelistofnamesandgroupsgrew,theybrokeintoadiscussionthatbegantoengagethem.Theystartedtoreallyconsiderthosewhowouldbeputatrisk.Whatwouldthismeanfortheunion?Whatwouldthismeanforfamilymembersofpeoplewhomightlosetheirjobs?Whatwouldthismeanforthecommunity?Astheyrealizedthedifficultiesthatlayoffswouldpresent,theygraduallybecamecommittedtofindingalternativestolayoffswherepossible.

Thiswasashiftintheirsharedmindset.Itledtoasecondbreakthrough.TheArbingerconsultantwhowasworkingwithLouise’steamaskedtheexecutivestopairup.Theywereeachtospendthenexttwohoursmeetingone-on-onewithtwoorthreeoftheircolleagues.Theassignmentwastwofold.First,theywereaskedtolearnasmuchastheycouldaboutoneanother’sareasofthebusiness.Second,overthecourseofthissharing,eachwastothinkaboutwhatheorshecoulddotohelptheotherpreservethevitalpartsofhisorhersegmentsofthebusiness.Thetaskwasnottohelptheircolleaguestocuttheirbudgetsbutrathertoidentifywhattheyeachcoulddotohelpthecolleaguessave—thatis,preserve—theirbudgets.

Askingpeopletofigureoutwhattheycoulddotokeeptheircolleaguesfromhavingtocutmoneymightseemanoddwaytocut$100million.However,surprisingthingsstartedtohappenduringtheseone-on-onemeetings.Ascolleagueslearnedmoreabouttheirteammembers’respectivepartsofthebusiness,theyfoundthemselveswantingtohelptheircolleagueswiththeirchallenges.Theybeganofferingtomakesomecutsintheirownareasofthebusinesstopreservekeypartsoftheircolleagues’areas.

AsoneofLouise’sexecutiveslearnedmoreabouttheworkofhiscolleague,hestartedtowonderifitwouldn’tmakegoodbusinesssense,andsaveagreatdealofmoney,ifhefoldedhisowndivisionintohiscolleague’s.Considerwhatthismeant:aleaderwhoreporteddirectlytothepresidentofthecompanywasconsideringsteppingdownalevelandreportingtosomeonewho,uptothatmoment,washispeer.Hesharedthisideaaloud.

moment,washispeer.Hesharedthisideaaloud.LikeSWATteammembersmixingbabybottles,thisisthesortofthingthat

doesn’thappenveryoften.Thereasonitdoesn’tisbecausepeoplecan’tconsidersuchamovefromtheperspectiveofthekindofmindsetthatnormallyprevailsinorganizations—especiallyinpressure-filledsituationsliketheoneLouiseandherteamwerein.

Thissinglemove,whereoneexecutivefoldedhisportionofthebusinessbeneathoneofhiscolleagues,savedthecompany$7million.Thiswasthefirstofanumberofcollaborativestepsthatenabledthemtocutthefull$100millionwhileimprovingratherthanharmingtheorganization.Achallengethathadthepotentialtodividetheteamorresultinindiscriminatecutsthatcouldhavedamagedthebusinessoverthelongertermendedupbecomingtheimpetusforinnovativethinkingthatmadethebusinesshealthierandbetter.

ThewayLouiseandherteamcametogethertomeetthechallengeofcutting$100millionbecametheirmodeofworkingtogether.Theybegancollaboratingthiswayyearafteryear.Earlyon,themembersofherexecutiveteamneededafulldaytocollaborativelysettheannualgoalsfortheirhighlycomplexorganization.Afteracoupleofyears,theywereabletopullthisoffinhalfaday.Ultimately,theyfoundtheycouldcompletetheprocessinanhour,astheannualgoal-settingworkbecamesimplyanextensionofthewaytheyworkedtogetheronadailybasis.Overthisperiod,theydoubledthebusinessatatimeexpertsthoughtitcouldn’tgrowmorethan5percent.

Let’sexaminesomekeydifferencesbetweenthewayLouise’steaminitiallytriedtotacklethechallengeofcutting$100millionandhowtheylaterwereabletoaccomplishtheirgoal.Diagram5showsthesedifferences.

Diagram5.Louise’sTeam

Theteamhadacollectivetargetresult.Theyneededtocut$100millionincosts.Inthebeginning,theywereunderstandablyconcernedabouttheirownfutureswiththecompany.Allwerestronglymotivatedtopreservetheirownpositionsandstatusintheorganization.Withthismindset,theycouldconsideronlythoseoptionsthatwouldadvancetheirownagendas.Weillustratethisbypointingthebehaviortriangleattheperson.Wecallthiswayofoperatinganinwardmindset.

Whentheybrokefreefromtheconstraintsofself-concern,theteammemberswereabletoconsideroptionsthathadn’toccurredtothemwhentheirmindsetswereinward.Focusingtogetheronthecollectiveresult,theirmindsetsturnedoutward.Weillustratethisbypointingthebehaviortriangleatthecollectiveresult.

Noticehowpeoplethinkaboutanddodifferentthingsdependingontheirmindset.Withaninwardmindset,peoplebehaveinwaysthatarecalculatedtobenefitthemselves.Withanoutwardmindset,peopleareabletoconsiderandbehaveinwaysthatfurtherthecollectiveresultsthattheyarecommittedtoachieve.

Thesetwomindsets—aninwardmindsetontheonehandandanoutwardmindsetontheother—formtwoendsofacontinuum,asillustratedindiagram6.Consider,forexample,anorganizationinwhicheverypersonoperateswithan

inwardmindsetandwherethepractices,policies,andprocessescontinuallyinvitethesame.Noorganizationiscompletelythisway,butconsiderthisextremecaseastheleftendofthemindsetcontinuum.Thenconsideranorganizationcomposedofpeople,processes,andpracticesthatareentirelyoutward.Again,nosingleorganizationoperateswithacompletelyoutwardmindset,butconsiderthatpossibilityastheextremerightendofthecontinuum.

Inourwork,webothassessandinviteclientstoself-assesswheretheyareonthiscontinuum.Wedothistogetabaselineagainstwhichtomeasureprogress.Itisinterestingtoseehowpeopleratetheirownorganizations.Ifanentirelyinwardmindsetis0onthescaleandanentirelyoutwardmindsetis10,arelativelysmallpercentageofgroupsassesstheirownorganizationsathigherthan5onthiscontinuum,withmostself-assessingatsomewherebetween2and4.

Onaverage,peopleratethemselvesmorehighlyonthiscontinuumthantheyratetheirorganizations.Sowithinacompanyyouendupwiththefollowingincongruity:employeesratethemselvesas7sbuttheorganizationasa3.Thisisamanifestationoftheproblemofself-deceptionthatwewroteaboutinLeadershipandSelf-Deception.

Diagram6.TheMindsetContinuum

Whateverthescoresare,theobjectiveistomoveindividualsandorganizationsfurthertotherightonthemindsetcontinuum.Why?Becauseaccountability,collaboration,innovation,leadership,culture,andvaluetocustomersallimproveasorganizationsincreasinglyapplyanoutwardmindsetin

theirstrategies,structures,systems,processes,andday-to-daywork.

4•SeeingTruthfully

Inchapter3,weintroducedtheinwardandoutwardmindsetsandsawbothatworkinLouiseFrancesconi’sexecutiveteam.Theirshiftfromaninwardtoanoutwardmindsetillustrateshowpeopleareabletoconsiderbetterpossibilitieswhentheirmindsetsareoutwardbecausetheyseebeyondthemselvesandcanthinkbeyondnarrowself-interest.

Ashifttoanoutwardmindsetalsochangeshowpeoplesee,regard,andengagewithothers.WesawthistoointheexperienceofLouise’steam.Astheirmindsetsturnedoutward,theybegantoseeandconsidernotonlytheirownneedsbutalsotheneedsandobjectivesofothers—theneedsoftheircolleaguesandofthosewhomightbeaffectedbypotentiallayoffs.Breakthroughscameastheybeganconsideringothersinthisway.Seeingothersdifferently,theybeganthinkingandbehavingdifferently.

Diagrams7and8onthenextpageillustratethedifferencesinhowonebehavesandengageswithothersdependingonone’smindset.Thetrianglesinthesediagramsrepresentmyobjectivesandbehaviorsrelativetootherpeople.Withanoutwardmindset,myobjectivesandbehaviorstakeothersintoaccount;thetrianglepointsoutward.Withaninwardmindset,myobjectivesandbehaviorsareself-focused;thetrianglepointsinward.

AnotherelementonthediagramscommunicatesthekeydifferenceinhowIseeothersinthesetwomindsets.Withanoutwardmindset,Iamalivetoandinterestedinothers’needs,objectives,andchallenges;Iseeothersaspeople.Withaninwardmindset,ontheotherhand,Ibecomeself-focusedandseeothersnotaspeoplewiththeirownneeds,objectives,andchallengesbutasobjectstohelpmewithmine.Thosethatcanhelpme,Iseeasvehicles.Thosethatmakethingsmoredifficultforme,Iseeasobstacles.Thosewhosehelpwouldn’tmatterbecomeirrelevanttome.

Diagram7.TheOutwardMindsetandOthers

Diagram8.TheInwardMindsetandOthers

Don’tconfuseintrospectionwithaninwardmindset.Onecanintrospectinaself-centeredway,whichwouldindicateaninwardmindset.However,apersonalsocanintrospectaboutone’sconnectionswithothers,whichistheveryessenceofwhatwearecallingoutwardness.Sometimesitishelpfultolookinsidetoseehowoneisconnectedwithwhatisoutside.

Thiskindofoutward-mindsetintrospectionisastrategicimperativeforthehealthcarecompanythatwediscussedinchapter1.Itssuccessisdirectlytiedtohowtheemployeesofthatcompanypurposelyreflectonhowtheyarewithothers,tryingtobecomeawareofandinterestedintheneeds,objectives,andchallengesoftheircoworkersandcustomers.

Oneofthefirstfacilitiesthecompanypurchasedhadexperiencedperennialstruggles,bothclinicallyandfinancially.Thefacilitywasledbyaninterdisciplinaryteamoftalenteddepartmentheadswhohad,overtime,forgottenthereasontheyenteredhealthcare.Yearsofinwardlyfocusedmanagementhadinvitedandreinforcedaninwardfocusinthem,oftenleavingthemblindtotheirimpactoneachotherand,mostimportantly,thepatientsintheircare.Duringthefirstfewmonthsaftertheacquisitionofthisfacility,anelderlyVietnamesepatientwasadmittedfromthelocalhospital.

elderlyVietnamesepatientwasadmittedfromthelocalhospital.WhiletravelingbacktoVietnamaftervisitingherchildreninanotherlocation

intheUnitedStates,thispatienthadexperiencedmajorhealthcomplications.UnabletospeakEnglishandwithnofamilynearby,shewaspowerlesstocommunicatewiththestaffateventhemostbasiclevelsandquicklybecameaproblem.Onebehavioraloutburstfollowedanother—firstshethrewherfoodandthenherurinal—eacheruptionaccompaniedbyyellsandrantsinalanguagenoneofthestaffunderstood.“Shehastobedischarged,”onedepartmentleaderdemandedinthenextdepartment-headmeeting.“Surelythereisabehavioralunitthatwillaccepther.”Anotheragreed:“Attheveryleast,wehavetogetthephysiciantoprescribemedicationtocalmherdown.”

Withthesetwooptionsonthetable,theteamstoodtoleavethemeeting.“Whatwoulditbeliketobeher?”oneoftheteammembersaskedquietly,almosttoherself,givingvoicetoanoutward-mindsetquestion.Everyonestopped.“I’mjustthinkingaboutwhatitwouldbeliketobeMs.Tham,”shecontinued.“Sheisfarfromhome.Shecan’tcommunicate.Shecan’tunderstandwhatisgoingon.Shedoesn’tknowwhywearekeepingherhereorifshe’llevergethome.Iwonderwhatshe’sthinking?Whatwouldthatbelike?”

Everyonesatdownagain.Afterafewmoments,thedietarysupervisorspokeup:“Youknow,thereisalittleVietnamesestorebymyhouse.Ithinkitmightmakeadifferenceifshecouldeatwhatshe’susedtoeating.I’llgetsomerecipesonlineandseewhatwecoulddointhekitchen.”ThesocialservicesdirectorbegansearchingforlocalVietnamesecommunitygroupsandwithintheweekhadalineupofvolunteerstobeatMs.Tham’sbedsidespendingone-on-onetimeinconversationandprovidingtranslationservicesforthenurses.SoontheentirestaffhadralliedtofindwaysnotonlytomakeMs.Tham’sstaybearablebuttoenrichit.Shewasnolongeranobjecttothepeopleinthefacility;shehadbecomeapersontothem—apersonwhomtheydesiredtohelp.

NoticehowtheteammembersexercisedtheirbestthinkingwhentheybegantoseeandconsiderMs.Thamasaperson.ThesamecouldbesaidofChip’ssquadmembersandLouise’sexecutiveteam.Seeingpeopleaspeopleratherthanasobjectsenablesbetterthinkingbecausesuchthinkingisdoneinresponsetothetruth:othersreallyarepeopleandnotobjects.

Thistruth,onceseen,enableschangeevenwherechangeseemsmostunlikely.Forexample,considerthestoryofIvanCorniaandhisfather,William.

Ivanwasbornin1929.DuringtheyearsoftheGreatDepression,hisfathersandwichedlongdaysmanningthelocalcanalbetweenmorningandeveningworkonthefamilyfarm.William’sbossonhisdayjobwasaverydifficultman,andWilliamoftenreturnedhomefromhisshiftinanangrymood.Hetriedto

andWilliamoftenreturnedhomefromhisshiftinanangrymood.Hetriedtofindrefugeinthebottle,andthemixtureofangerandalcoholdrovehimtoviolence,startingwiththeanimalsonthefamilyfarm.Forexample,ononeoccasionwhenreshoeingoneofhishorses,thehorsejerkeditsfootandrippedWilliam’slegopen.Williamjumpedup,grabbedametalrasp,andcrasheditagainstthehorse’shead.YoungIvanwasholdingthehorsebyitsbridleatthetime,andtwelvehundredpoundsofhorsefleshcollapsedtothegroundathisfeet.Ivanthoughthisfatherhadkilledit.

Ivanhadwitnessedhisfatherbeatingsheep,cows,goats,anddogsnumeroustimes.Helivedinconstantfearthathewouldbenext.

Oneearlymorning,Ivanandhisfatherwereinthebarntogether.Ivanwasmilkingoneofthecowswhilehisfatherwastakingcareofotherchores.AsIvanmilkedhiscow,thecowinthenextstallswitcheditstail,whichwasjustlongenoughtoreachIvan.Oneoftheburrsontheendofthecow’stailcaughtIvanintheeye.Withoutthinking,Ivanleaptup,grabbedthemetalmilkstoolhehadbeensittingon,and,whileshoutingthevileobscenitieshehadheardhisfatheryell,beganbeatingthecowviolently.Whenhehadunleashedallhisanger,heputthestoolbackdownandcollapsedontoit,readyinghimselftocontinuemilking.Butthensomethinghorrifyingoccurredtohim:thecowhehadjustpulverizedwashisfather’sfavoritecow,andhisfatherwasworkingbarelytwentyfeetbehindhim.Ivanbeganquiveringandsunkloweronhisstool.Heburiedhisheadintotheflankofthecowandwaited,heartpounding,surethatthetimeforhisbeatinghadcome.

Buthisfatherdidn’tcome.BesidesIvan’sheavybreathing,thebarnlayshroudedinsilence.

Afterwhatseemedlikeaneternity,Ivan’sfatherquietlyapproachedandplacedastoolnexttohisson.Thenheheardhisfathersoftlysay,“Ivan,ifyou’llstop,I’llstop.”

Recallingthisstorysomeseventyyearslater,Ivansaidthatfromthatmomentonhe’dneverknownamoregentle,helpful,andkindhumanbeing.WilliamCorniacompletelyandirrevocablychangedhislife—allatonce.Nomoreviolence,nomorevilelanguage,nomorealcohol.Hebecameadifferentpersoninaninstant.NoonewhoknewWilliamatthetimewouldhaveguessedthathecouldchangelikethis,andcertainlynotallatonce.Howwasheabletodoit?

Williamfoundtheabilitytodowhathehadpreviouslybeenunabletodointhemomenthesawtheneedsofhissonandrealizedthathewasresponsibleforhisimpactonhisboy.William’schangewasdramaticbecauseitwasnotmerelyachangeinwhathedid;itwasachangeinhowhesawandthought.

RokZorko,vicepresidentofproductdevelopmentfortheverysuccessfulapp-developmentcompany,Outfit7,said,“Itisaneye-openertorealizethatyouarenottotreatpeopleasobjectsbuttotreatthemaspeople.Onceyouhavethisknowledge,youcanneverunthinkit.”Evidently,thiswastrueforWilliamCorniaaswell.Oncehesawtheimpacthehadonhisson,hecouldnotunseeit.SeeingIvaninthiswaywasWilliam’sescapefromhisinwardmindset.

William,Louiseandherexecutiveteam,ChipandhisSWATsquad,andthehealthcareworkerswithMs.Thamwereabletomovetoanoutwardmindsetwhentheysawbeyondthemselvesanddiscoveredtheneedsofthosearoundthem.Throughtherestofthisbook,wewillconsidermanyadditionalreal-lifeexamplestofurtherexplorethedifferencesintheinwardandoutwardmindsetsandtohelpilluminatehowtoliveandworkmoreconsistentlywithanoutwardmindset.

InpartII,weexploretheinwardandoutwardmindsetsinmoredepth.Wediscusshowpeoplegetintheirownwaybyadoptinganinwardmindset,andweconsidertheconsequencesofaninwardmindsetbothpersonallyandorganizationally.Wecontrasttheinwardmindsetwiththewayindividualsandorganizationsfunctionwhentheirmindsetsareoutward.

InpartIII,wedetailtheoutward-mindsetpattern,astep-by-stepblueprintthat,ifimplemented,enablesapersonororganizationtoconsistentlyoperatewithanoutwardmindset.

InpartIV,wepresentimportantissuestoconsiderandhelpfulactionsthatindividualsandorganizationscantaketoimplementanoutward-mindsetapproachwithingroupsofpeople,includingacrossentireorganizations.

PARTII

ExploringtheOutwardMindset

5•GettingoutofOurOwnWay

Foralltheadvantagesthatanoutwardmindsetseemstooffer,whywouldpeopleeverbeinward?Itistemptingtoblamedifficultcircumstancesorchallengingpeople.However,inourexperience,whatkeepspeoplefromanoutwardmindsetisthemselves.Wegetinourownway.

Youmightfindyourselfincircumstancesthatmakethisclaimsoundnaive.Yourbossmaybedifficulttoworkfor.Perhapsyoufeelbeatdownbyacriticalspouseoroverwhelmedbychallengingchildren.Youmightbeonthebrinkoffinancialruinorfeelasifyourcareerhashitadeadend.Inresponsetotheseorotherdifficulties,perhapsyouhavefeltcompelledtowardaninwardmindset.Ifso,weunderstand.We’vebeentheretoo.

Butwe’vealsobeenprivilegedtoknowpeoplewho,despitetheirownchallenges,havebeenabletofindtheirwaytoanoutwardmindset.Andwe’veseenhowmuchbetterofftheyareforhavingdoneso.OnesuchpersonisChrisWallace.Aseventeen-year-oldgirltaughthimthathismindsetwashischoice,nomatterthedifficultyofhischallenges.WearegratefultoChrisforallowingustosharehisstory.Althoughdeeplypersonal,itslessonsapplyeverywhereand,webelieve,toeveryone.

OnaswelteringAugustdayin1967,thensixteen-year-oldChriswascuttinghayonhisfamily’sranch.NamedbyhisfatherafterChris’smother,Margaret,theSantaMargaritaRanchwasamagnificentthirty-nine-hundred-acrespreadlocatedonehundredmilessoutheastofReno,Nevada.Ariverflowedthroughthemiddleoftheranch,linedbycottonwoodandpoplartreesthatmadeitaninvitinggetawayfromboththemonotonoushardworkoftheranchandtheheatofthesummerNevadasun.Onthisday,Chriswasoperatingtheswather,amachinethatcutshayandfunnelsthecuttingsintonarrowswaths,orwindrows.Hewasontheseatoftheswathergrousingtohimselfabouthisfather.

Hisfather,NateWallace,hadbeenraisedonawheatfarminNorthernCaliforniawherehewasoneofthefirstcrop-dusterpilotsinthestate.HeandMargaretmarriedsoonaftermeetinginCarsonCity,Nevada.Together,theyacquiredandranaprivateairportinReno.Theysoldtheairportafewyearslaterforahugeprofitandplowedtherevenuesintothreeranches,whichtheyassembledintotheSantaMargaritaRanch.ItwasNate’swayofreturningtohis

assembledintotheSantaMargaritaRanch.ItwasNate’swayofreturningtohisroots.ForChrisandtherestofthechildren,theranchwasbothasymbolofsocialstatusandthesourceofadrearystringofendlessobligations.

WhenChriswasfourteen,hiswayofescapefromtheranchpresenteditselfinthepersonofhiswealthyuncleDick,visitingfromPennsylvania.“I’dliketotakeChrisbackwithmetointroducehimtotheEast—thecities,themuseums,thecivilwarsites,hiscousins—andshowhimwhatispossibleinbusiness,”hesaidtoChris’sfatherwhileatthedinnertableonenight.ThebusinesshementionedhappenedtobeoneofNelsonRockefeller’scompanies.Chris’sunclewasthenpresidentofthecompany.“IthinkitwillprepareChrisforbigthings,”UncleDicksaid.

Chriswasstunnedbythispronouncement.Hehadgrownupwithstoriesofthewealthandsuccessofhismother’sfamilybuthadneverbeenbackEasttoseeitforhimself.HecouldhardlycontainhisexcitementashepicturedlifeawayfromthedustyroadsandendlessfieldsoftheSantaMargaritaRanch.Heturnedandlookedhopefullyathisfather.

Natewipedhismouthwithhisnapkinashefinishedchewingamouthfulofpotroast.Heshookhishead.“That’sagenerousoffer,Dick,”hesaid,“butit’snotsomethingwe’llbeabletodo.”Chris’sspirit,whichamomentbeforehadbeensoaring,slammedheadlongintothedustyhigh-desertrealitythatsuddenlyseemedbothaceilingandaprison.Chrissilentlylookeddownathisplateoffoodandfeltresentmenttowardhisfatherswellwithinhim.

Chris’sangersimmeredtothepointthathegotupabruptlyandranfromthehouse.Hisfathercameoutlookingforhim,butChriswantednothingtodowithhimandremainedstealthilysilent.Inhismind,hisfatherhadjustsentencedhimtoalifethathesuddenlyhated.Hehidonthepump-houseroofuntillongafterhisfatherhadgivenupthesearch.

Chrisreplayedthememoryofthateveninginhismindashefinishedcuttingthealfalfafortheday.Overtheinterveningtwoyears,hehadgrowndistantfromhisfather.Heperformedhisrequireddailychoresbutofferednomoreofhimselfthanthat—nowords,noextraeffort,nounderstandingorgratitude.Uponfinishinghisbasicdailyresponsibilities,hewoulddisappearintothebrushalongtheriver,tryingtoescapehislifebylosinghimselfinbooksthatheborrowedfromhisfather’slibrary.

AlthoughChriswasn’tpayingattentiontoit,thefamily’sfinancialsituationhadgrownprecarious.UncleDickofferedtotakecareoftheircrushingloadofdebt,butChris’sfatherflatlyrefusedthehelp.Instead,attheendofhisrope,he

agreedtodeedthemassiveSantaMargaritaRanchtoaneighborinahumiliatingexchangeforasmall160-acreranchandalocalnine-holegolfcourse.TheimminentlossoftheranchmadeChrisfeelasiftheywerejustcountry-bumpkinlosers.ToChris,itwasonemorereasontohatehisfather.

AsChrisnearedthehousethisparticularevening,heheardhisparentsquarreling.Hehadneverheardthemarguebefore.Chrisopenedthedoorjustintimetoseehisfatherstrikehismotherwithhishand—asightmuchmoreshockingtoChristhanthesoundoftheirquarreling.TherighteousindignationChrisfeltonbehalfofhismotheractedlikeasparktothetwoyears’worthofcombustibleresentmentthatbubbledwithinhim.Hesprintedintohisparents’bedroomandgrabbedhisfather’spistol.Wild-eyedandlivid,hechasedhisfatheroutofthehouse.

Onanightjusttwomonthslater,Chris’slifewaschangedforever.Afterretiringtobed,hewasawakenedbytwoloudnoises—thefirstthefiringofagunandthesecondthethudofabodyhittingthefloor.HeawoketodiscoverthathisfatherhadkilledhimselfwiththesamegunChrishadwieldedagainsthim.

Chris’solderbrotherranintoChris’sbedroomtotellhimwhathadjusthappened,butChrishadnodesiretogoinhisparents’bedroomtoseethescene.Fromthehallway,hecouldseehisfather’sfoot.ThatwasenoughforChris.Hefeltfreenowthathisfatherwasdead.

NateWallace’sdeathputtremendousstrainonthefamilyatatimewhentheywerealreadyexperiencingterriblehardship.Chrisblamedhisfatherforallofit—fortheireconomicmisfortune,forleavingChris’smothertohandleeverything,andforembarrassingthefamilyandmakingthemfeellikesocialoutcasts.Chrisbecameconsumedwithanger.

Whenanythingwentwronginhislife,heblamedhisfatherforit.Afailedrelationship?Hisfather’sfault.Difficultyinaclassatschool?Alsohisfather’sfault.Indecisionabouthisfuture?Whatwouldyouexpectfromonewhohadnofathertoadviseandcounselhim?

WhenChrislaydownatnight,hisfatherruinedevenhissleep.FrequentlyChrisdreamedofseeinghisfatheroutsideabuildingoracrossaparkinglotorfield.ButbythetimeChrisreachedthespotwherehisfatherhadbeen,hehaddisappeared.NightafternightChrisrelivedthisscenario,hisfatherstillabandoninghim.

Chrishadlearnedthathecouldgarnergreatsympathybytellingothersabouthisfather’ssuicideandhowhisfatherstillhauntedhisdreams.ThebeginningofChris’slessonsinmindsetchangehappenedonaneveningwhenChris,whowastwenty-oneatthetime,toldhisstorytoaseventeen-year-oldgirlwe’llcallAnn.

twenty-oneatthetime,toldhisstorytoaseventeen-year-oldgirlwe’llcallAnn.Unlikeothershe’dtoldthestoryto,shewasn’tbuyingit.UponhearingChris’sstory,shestartedchuckling.

“Whyareyoulaughing?”Chrisaskedangrily.Anndidn’trespondimmediately.“There’snothingfunnyaboutit,”Chrisstammered.“Whydoyoulaugh?”“Well,”sheresponded,“yourdadisdead,right?”Chrisjustlookedather.“Sothosethingsgoingoninsideyourhead—he’snotresponsibleforthem;

youare.They’reyourdreams.”ThatthoughthadneveroccurredtoChrisbefore.Hepuzzledoverit.Anncontinued:“Ifyoucouldcatchuptohim,whatwouldyoutellhim?”“I’dtellhimallthethingshedidwrong,”Chrisanswered,gettingworkedup.

“I’dtellhimoff—abouthowhe’dhurtMomandhurtus.”Annscratchedherheadforamoment.“That’sinteresting.Inyoursleep,you

can’tallowyourselftoconfrontyourfather.Itmustbebecause,atsomelevel,youdon’twanttoaddtohispain.”

ThisthoughtcamefromsofarafieldthatChriscouldhardlyprocessit.Ithadneveroccurredtohimuntilthatmomentthathisfatherhadburdens.Chrishadonlybeenalivetohisown.

“SowhatshouldItellhim,then?”hechallengedher.“Idon’tknow,”sheresponded.“Maybeyoucouldapologizeforhatingand

resentinghimalltheseyears.”Chrisexploded:“Look,ifanyoneshouldapologize,it’shim!Heruinedmy

life.”“No,Chris,”shesaid.“Heruinedhislife.You’reruiningyours.”Chriscouldn’tevenspeakinresponsetothis.Hewanderedawayinastupor.ChriskeptthinkingaboutwhatAnnhadsaidtohim,andforthreeweeks,his

fatherdidn’tshowupinhisdreams.Then,onedream-fillednight,Chrissawhisfatherwalkingdowntheoppositesideofastreet.WhenChrissawhim,hisfatherduckedintoahardwarestore.Chrisquicklycrossedthestreetandenteredthestorehimself.Insteadoffindingthestoreempty,whichhadbeenwhathappenedineverysuchdreambefore,onthisnight,Chrisenteredtofindhisfatherstandingjustfourfeetinfrontofhim.Afteralltheseyears,Chriswasface-to-facewithhisdad.

Whatwouldhetellhim?ThedreamingversionofChristookyoungAnn’sadvice.Heofferedhis

apologyandheandhisfatherfellintoanembrace.WhenChrisawakened,hefoundhimselffilledwithanentirelynew

sensation:hemissedhisfather.Alltheacrimonyhehadbeencarryingwasreplacedbylonging.

Thislongingforhisfatherisafeelingthatmorethanforty-fouryearslaterhasneverleftChris.Whenhethinksaboutthispersonalmetamorphosis,hedrawsapowerfulconclusionfromit.“We’resoconvincedthathowwethinkandfeelaboutotherpeopleiscausedbythem,”hesays,“bywhattheyhaveorhaven’tdone,byhowinconsideratetheyhavebeentousorhowjudgmental,andsoon.Butaseventeen-year-oldyoungwomantaughtmethatthiswasn’ttrue.IseepeoplethewayIseethembecauseofme.”

Whenquestionedwhetherheisn’tjustgivinghisfatherapassforthehardshiphecaused,Chrisdoesn’tflinch.“No,Ijuststoppedgivingmyselfapass.Thatdidn’tmeanIstartedgivingmydadone.Icanseehisfailings.Hemadesomemistakes,includingoneparticularlyhorrible,terriblemistake—oneIbethewouldhavewantedtotakebackthemomentafterhedidit,hadthatmistakenotendedhisabilitytodoso.ButIdon’tdwellonhismistakesanymore,thewayIusedtofixateonhisfailingsasawayofdenyingmyown.”

WhenquestionedwhatmistakesChrishadmadeofhisown,hestartstotearup.“Ididn’treallyseemydadbackthen.Notreally.Itookhimforgranted.AllIreallycaredaboutwaswhatIwantedtobedoing.Inevertriedtoappreciatetheheavyburdensthatheshouldered—thehugedebtandneedsofalargefamily.IguessasateenagertherewerelimitstowhatIcouldhaveunderstood,butthepointisthatIdidn’teventry.Notevenalittle.

“HadItried,”hecontinued,“Imighthavebeenabletoconsiderhowmyfatherwasn’ttryingtoruinmyfuturewhenhetoldUncleDickthatIcouldn’tgobackEastwithhimbutthatheandmyfamilyneededme.Infact,it’spossiblethatmyfatherdidn’twantmetogopartlybecausehedidn’twanttomissoutonmyfinalgrowing-upyears.Whocanjustupandwavegoodbyetotheiryoungestchildwhenheisjustfourteen?IknowIcouldn’t.Andneithercouldhe.”

Chrisshakeshisheadatthethought.“Iragedatmydadfornotcaring,whenit’sfarmorelikelythathedidwhathedidbecausehecaredsomuch.ButIdidn’tseeit.Inevergavemyfatherachancetoexplain.Iwasn’tinterestedinanalternativetomyexplanationforwhyhesaidwhathedid.Instead,Ijustturnedawayfromhimandretreatedintomyself.

“SoyouaskwhatmistakesImade?”Chrisrepeatsthequestion,lookingthequestionerstraightintheeyes.“Imadethemistakeofjustfocusingonmyself,whichmadememissandmisinterpretsomuchthatwasaroundme.Iwondereverydayifthingsinthefamilywouldn’thavegonedifferentlyhadIjusttriedtosee.”

Aswediscussedinchapter4,thisinterestintheneedsandobjectivesofothersiswhatsetstheoutward-mindsetindividualapartfromthosewhoareburdenedwithaninwardmindset.Whenmymindsetisoutward,Iamalivetoandinterestedinotherpeopleandtheirobjectivesandneeds.IseeothersaspeoplewhomIamopentohelping.Whenmymindsetisinward,ontheotherhand,Iessentiallyturnmybackonothers;Idon’treallycareabouttheirneedsorobjectives.

Notcaringinthiswaymightseemtomakemylifesimpler,butnothingcouldbefurtherfromthetruth.Notcaringtonoticeorbemovedbyothersrequiressomethingofmethattakesatremendouspersonalandsocialtoll:itrequiresmetofeeljustifiedfornotcaring.

Ifindjustificationbyfocusingonothers’faults,realandimagined.Itakeupaselfjustifyingandothers-blamingnarrative,whichcomesatgreatpersonalandsocialcost.Ivalueotherpeople’sfailuresbecausetheygivemeanexcuseforwhyIshouldn’thavetohelpthem,andIvaluemyownpersonalfailures,asChrisdidhis,becausetheygivemeproofthatothershavedonemewrong.1

Let’sconsiderhowthishappens.Thinkaboutthefollowingsituation.Let’ssaythatIworkwithsomeonenamedLori.SupposethatonedayIcomeacrossapieceofinformationthatwillbeveryhelpfultomeinmywork.SupposeaswellthatfrommyunderstandingofLori’sneedsandobjectives,IrealizethattheinformationwouldbeveryhelpfultoLori.IfIhaveanoutwardmindset,knowingthattheorganization’ssuccessdependsonmycolleague’ssuccessaswellasmyown,Iwillfeelanobligationtohelpmycolleaguesucceed.RecognizingthatLoriwouldbehelpedbytheinformation,Iwillhavethedesiretoshareitwithher.

ButIdon’thaveto.Istillhaveachoice.WhatifIweretochoosenottosharetheinformation?Whatdoyousupposemighthappentomymindset?

WhatifLorioncedidsomethingthatmadeasituationharderforme?AsIbegintoentertainthepossibilityofnotsharingtheinformationwithher,doyouthinkthatImightrememberthattimewhenshedidn’thelpme?Whatifshehassomeannoyinghabits?DoyouthinkImightstartthinkingabouthowannoyingshecanbe?

MaybeIdon’tknowLoriverywell.Notknowingherwouldgivemealotofroomtoimaginewhatshemustreallybelike.WhatpictureofLoriwouldmakeiteasierformetofeeljustifiedfornotsharingtheinformation?Loriashardworkingorlazy?Trustworthyorunreliable?Helpfuloruncooperative?

Withaninwardmindset,IseeLoriindistortedways—waysthathelpmefeeljustifiedfordecidingnottohelpher.Iwillzeroinonanythinginherorinthesituationthatwillgivemethisapparentjustification.Shedoesn’thelpme,Imightsaytomyself.Andshe’sreallyanannoyingperson.Youcan’ttrusthereither;noonewhoisreallytrustworthyhassuchshiftyeyes.Besides,ifsheworkedharder,shewould’vediscoveredtheinformationherself.Ishouldn’trewardslothfulness.No,thatwouldn’tbegoodforthecompany.ItwouldreallybeamistakeifIsharedthiswithher.Myself-talkandhowIamnowfeelingtowardLoriwilljustifythewayIamchoosingtolive.

ThisissimilartothewayChriswasseeinghisfather.FromChris’sinward-mindsetperspective,hisfatherwastoblameforeverythingthathadgonewronginChris’slife.Chrisfelthewasdoingthebesthecoulddounderthecircumstances.

Chris’smindsetbeganchangingwhenhestartedtoshifthisfocusfromhisowntroublestothetroublesofhisfather.Thiswasnoeasyfeatinhissituation.Buteventuallyhewasabletoturnsomeofhisattentiontohisfather—nottoblamehimbuttounderstandhim.ThiswillingnessunlockedChrisfromthedarkandcrampedspacewherehehadbeenconfininghimselftolive.

Consideryourownsituations.ForyearsChrisresistedtheneeds,burdens,andchallengesofhisfather.Aretherepeopleinyourlife,eitheratworkorathome,whoseneeds,objectives,andburdensyouresistseeing?Howaboutpeoplethatyoudon’tresist—peoplewithwhomyouareopen,curious,interested,aware?

Asyoucomparetheserelationships,whatdifferencesdoyounoticeinhowyoufeelandact?Canyouspotanyblameinwhatyoutellyourselfaboutothersoranyselfjustifyingnarrativesthatyou’vecometobelieveaboutyourself?Inwhichrelationshipsdoyounoticetheseblaming,selfjustifyingnarratives?Theonesinwhichyouarealivetoandinterestedintheneeds,objectives,andchallengesofothersortheonesinwhichyouarenot?

Chris’sexperiencesuggeststhatthemosttroublingareasofourliveswillbethoseinwhichweresistwhatthehumanityofothersinvitesustosee.Thisisahopefultruth.Itmeansthat,likeChris,wecanberidofthedistortedwaysofseeingthatstrainourconnectionswithothers.Wecanstopresisting.

6•TheLureofInwardness

Inthepriorchapter,wediscussedhowpeoplewhochoosetodismisstheneedsandobjectivesofothersendupsearchingforwaystojustifythatchoice.Withinorganizations,everypersonwhoisburningtimeandenergyseekingjustificationisdoingsoattheexpenseofthecontributionheorshecouldbemakingtotheoverallresultsofthecompany.Theenergy-draining,time-wasting,silo-creatingeffectofthisjustificationseekingisoneofthemostdebilitatingoforganizationalproblems.

Thefollowingdiagramillustratestheinwardmindsetthatisattherootoftheseworkplaceissues.

Diagram9.TheInwardMindsetatWork

Oftenpeopleexhibitaninwardmindsettowardsomepeopleandanoutward

mindsettowardothers,butforsimplicity,thisdiagramdepictsanorganizationorindividualthatisoperatingwithaninwardmindsetineachofthefourbasicdirectionsoftheirwork.(Thesamediagramcanbeusedinothercontexts,suchasinyourpersonallife,bysubstitutingdifferentcategoriesofpeopleorbyaddingthenamesofkeypeopleinyourlife.)

Withaninwardmindset,apersonfocusesonwhatheneedsfromotherstoachievehisobjectives—whatheneedsfromhiscustomers,directreports,peers,andleadersorfromhischildren,partner,orneighbor.Heisprimarilyconcernedwithothers’impactonhimratherthanwithhisimpactonthem.Wecapturetheserealitiesinthisdiagrambyomittingtheneeds,objectives,andchallengesofothersandbypointingthetrianglesinward.Becausepeopleplaguedwithaninwardmindsetareignoringtheneeds,objectives,andchallengesofothers,theywillseetheircircumstancesandexecutetheirworkinwaysthatjustifytheirself-focus.

Butindividualsarenottheonlyoneswhofindthemselvesstuckinaninwardmindset.Entireorganizationscanfallpreytothelureofinwardnesswithspectacularlydamagingresults.

Toillustratewhatthismindsetcanlooklike,bothattheindividualandorganizationallevels,wewillsharetwoexperiencesfromourownhistoryatArbinger.Thefirstexperienceisanexampleofhoweasilyindividualscansuccumbtoaninwardfocus.Thesecondisanexampleofhoworganizationscanbeinwardlyoriented.

Yearsago,whenArbingerwasinitsearlystagesasanorganizationandfewpeopleknewofus,weputhundredsofhoursofworkintoaproposalforalargeculture-changeinitiative.Ontheafternoonwesenttheproposaltotheprospectiveclient,welookedateachother,wonderingwhattodonext.Oneofussaid,“Ican’tthinkofanything.Let’sgoswimming.”Andsoweswam.Andhoped.

Acoupleofweekslater,wereceivedwordthatwehadbeenselectedasoneofthethreefinalistsfortheproject.Thetwootherfinalistswereatthattimetwoofthemostwell-knowntrainingandconsultingfirmsintheworld.Theclientinformedusthateachofthethreefinalistswouldhavetwohourstopresentitsapproachtothecommitteethatwouldbepickingthewinner.Weheardthroughthegrapevinethatthecompany’svicepresidentofhumanresourceshadsaidthathewasfinewitheitherofthetwowell-knowncompanies,buthedidn’twanttoberesponsibleforbringinginacompleteunknownandthenhavingtheprojectfail;hecouldn’triskthatexposure.Sowehadasenseofwhatwewereupagainst.

against.Aswewereinthegreenroomwaitingtogoon,ourstomachswereinknots.

Wewerefeelingwhatgolfgreatandworld-classcharacterLeeTrevinodescribedwhenhesaid,“Puttsgetrealdifficultthedaytheyhandoutthemoney,”whichistosaythatwewereworryingaboutourselves.Wewereworryingaboutourselvesbecausewewereseeingthecustomerrelationshipbackward.Wewerenervousbecauseweneededthecompany’smoney,andwewereafraidthatifwedidn’tnailthispresentation,thecommitteewouldn’tgiveusany.Theobjectiveinourmindswasourown,notourcustomer’s.Wewereabouttopresentanoutward-mindsetapproachtocompany-wideculturechangewhileourmindsetswereinward.

Thankfully,someoneinourgrouprecognizedwhatwasgoingon,andhecalledusonit.“Hey,”hesaid,“we,ofallpeople,shouldknowbetterthanthis.Wedon’tknowwhetherwewillgetthiscontract;that’soutofourhandsanyway.Whatwedoknow,however,isthatwehavetwohourstobewiththesefifteenpeople.Thismightbetheonlytimeweevergettospendwiththemandwiththiscompany.Whatifwejuststayfocusedonbeingashelpfultothemaswecanbeduringthesetwohours?”

Thissavedusfromourselves,andasitturnedout,weendedupwinningthecontract.Inretrospect,winningthiscontractprobablywasessentialtoArbinger’ssurvivalintheearlydaysofourexistence.Theironyisthatourcompanybenefitedonlywhenwetookourmindsoffofourcompanybenefiting.Hadwecontinuedwithaninwardmindset,wewouldhavehelpedneithertheclientnorourselves.

Overtheyears,wehaveworkedhardasacompanytorememberthequestionthatourexperienceinthatgreenroominvitedustoask:Whoseneedsandobjectives—ourcustomer’sorourown—willbeourprimaryfocusandconcern?Notwithstandingthis,manyyearslaterwediscoveredawayinwhichwehadunwittinglyadoptedaninwardmindsetaroundakeyportionofourbusiness.

Partofourworkispreparingpeoplewithinourclientorganizationstobeabletofacilitateourworkshopsandimplementoutward-mindsetstrategiesintheirworkplaces.Wehavealwaysreallyenjoyedtrainingandpreparingtheseinternalpartners,andwehadlongbelievedthatweweredoingagoodjobinthispartofourbusiness.

Butwenoticedsomethingthatcausedustoquestionourbeliefaboutourselves.Werealizedthatalthoughweweretrainingandpreparingmanyinternalexperts,ourworkwiththemconsistedonlyofhelpingthembecomeproficientinwhatwedo.Helpingthembecomeproficientisimportant,of

course;weneededtocontinuetodothat.Butwenoticedthatwehadlargelybeenignoringsomethingthatwasofevengreaterimportance.Wehadnotbeensufficientlylearningabouttheneeds,objectives,andchallengesoftheorganizationsthatemployedthem.Becausewehadn’tbeenmakingenoughofanefforttounderstandwhattheseclientorganizationswantedtheirinternalexpertstohelpthemwith,wehadnowaytoknowifwewerereallyhelping.Highcustomersatisfactionscoresfromourinternalpartnersweren’tenoughtotelluswhetherourworkwashittingthemarkfortheseorganizations.

Asonthatdaymanyyearsagointhegreenroom,wehadbecomeblindtohoworganizationallywehadturnedinward—obsessingprimarilyoverthequalityofourownworkratherthanoverthevalueourclientswerereceivingfromourwork.Thisreawakeningcausedustoquestionalotoftheworkweweredoing.Itcausedustoreinventlargeportionsofourbusiness—howwewerestructured,wherewewerespendingourtimeandresources,ourclientengagementprocess,andtheserviceswewereproviding,aswellasoursuccessmetricsandcompanygoals.Wehavebecomeourownclientinthesensethatweusetheideaswesharewithotherstolookfortheinwardnessinourselvesthatcansoeasilysneakintoandcorruptindividualandorganizationalefforts.

Oneofthereasonsthatwehadmissedourowninwardmindednesswasbecauseasanorganizationwehadtakenonaninwardmindsetstylethatcaneasilybemistakenforanoutwardmindset.Diagram10capturesthis“outwardlynice”inwardmindsetstyleasitismanifestedinbothindividualsandorganizations.

Diagram10.The“OutwardlyNice”InwardMindsetStyle

Noticethatthetrianglesinthisdiagramareturnedoutward,astheyareintheoutward-mindsetdiagram(diagram7).Incontrasttotheoutward-mindsetdiagram,however,diagram10omitstheneeds,objectives,andchallengesofothers.Eventhoughpeopleororganizationsoperatingwiththisstyleofinwardnessfeelasiftheyaredoingthingsforothersandnotforthemselves,theyaren’tpayingattentiontotheneeds,objectives,andchallengesofthosetheyaresupposedlydoingthingsfor.Thisraisesthefollowingquestion:Iftheyaren’talivetoandinterestedintheneeds,objectives,andchallengesofthosetheyaredoingthingsfor,forwhomaretheyreallydoingthem?

ThisisaquestionweatArbingerhadtoaskourselves.Inaway,wefoundourselvesbackinthegreenroomagain,facingthesamequestion:Whoseneedsandobjectives—ourcustomer’sorourown—willbeourprimaryfocusandconcern?

Wehavelearnedthroughourworkwithclientsthatthisversionoftheinwardmindsetdiagramcaptureshowpeopleandorganizationsthatareinwardoftenexperiencethemselves.Theydon’texperiencethemselvesasbeingegocentricinthewaythestandardinwardmindset-at-workdiagram(diagram9)suggests,withthetrianglespointedinward.Theyfeelasiftheydogoodthingsforothersallthetimeandactuallyexperiencethemselvesasbeingoutwardly

facing.Theyexperiencethemselvesthewayoneofourcolleagues,JoeBartley,experiencedhimselfuntiloneofhisdaughtersawakenedhimtothetruth.

Joewastuckinghisdaughtersintobedoneevening.AftertuckinginSarah,agefour,heturnedtotuckinAnna,agesix.Annawasinafetalposition,facingawayfromJoeandtowardthewall.Joeleanedoverhertotuckinhercovers.Hefinishedandwasabouttoturnandleavetogohelphisson,Jacob,withhishomeworkwhenheheardAnnawhispersomething.Hecouldn’ttellwhatshesaid,butshehaddefinitelywhisperedsomethingtohim.“Whatwasthat,Anna?”Joeasked.Hebentovertolisten.

“Youdon’tlovemelikeyouloveJacob,”Annarepeated,hervoicebarelyaudible.

Joewasmomentarilystunnedbythecomment.HeinstantlycouldtellthatAnnawasreallyhurting.“SureIdo,”heassuredher.

“Noyoudon’t,”shewhisperedback.Joepausedforamoment.“Whydoyousaythat?”hefinallyasked.Annastillhadn’tmoved.“Youdon’tplaywithmelikeyouplaywithJacob.”“SureIdo,”Joedefendedhimself.“EverynightafterIgethomefromwork,

weallgooutbackandplaybasketballtogether.”“Idon’tlikebasketball,”Annawhispered.Tothisday,Joereflectsoftenonthisexperience.“WhatkindofafatherhadI

been,”hewonders,“thatIdidn’tevenknowthatmylittlegirldidn’tlikebasketball?ThetruthwasthatIlikedplayingbasketball,andIcounteddoingitwithmykidsasgoodparentingonmypart.ButAnnahelpedmeseethatIwasn’treallyseeingmykids.Notreally.IwasdoingwhatIwantedtodowiththem;Iwasn’tpayingattentiontowhattheywantedtodo.Iwasanoutwardlynice—evenfun-loving—inwardmindsetfather.”

Thistrapiseasytofallinto,especiallyforthosewhoseroleskeepthemdoingthingsforothers—peopleinhealthcareandhospitality,forexample,oreducators,counselors,primarycare-giversinthehome,andsoon.

Whatisthecostofaninwardmindset?Whenpeoplefocusonthemselvesratherthanontheirimpact,lotsofactivityandeffortgetwastedonthewrongthings.Theabsenceofcollaborationresultsinlowlevelsofinnovation.Andemployeesdisengageduetotheboredominherentwithinwardmindsetthinkingandworking.

Inthenextchapter,wediscussanoutward-mindsetwayofapproachingone’sworkthatcankeeppeopleoutoftheseandmyriadotherproblemsthataretheunavoidableresultofaninwardmindset.

unavoidableresultofaninwardmindset.

7•TheOutward-MindsetSolution

Thinkaboutthetimesinyourlifewhenyouhavefeltmostaliveandengaged.Whoandwhatwereyoufocusedoninthosemoments—onyourselforonsomethingbiggerthatincludedothers?

CaptainRobNewson,acareerNavySEALandlongtimeleaderintheSpecialOperationscommunity,providedaninterestinginsightonthisquestionwhenhedescribedthedifferencebetweenthosewhosuccessfullycompleteSEALqualificationtrainingandthosewhodon’t.SEALcandidatescanquitwhenevertheywantbyringingabellthathangsatthesideoftheirtrainingarea.“Icansaywithcertainty,”CaptainNewsonsays,“whenthosewhoquittookthefirststepstowardthebell:themomenttheystoppedthinkingaboutthemissionandtheirteammatesandstartedthinkingprimarilyaboutthemselves.Solongastheystayfocusedonthemissionandthosearoundthem,theycangetthroughanything.Butthemomenttheystartfocusinginwardandfixatingonhowcold,wet,andtiredtheyare,itisnotamatterofiftheywillringoutbutwhen.”

CaptainNewson’sadvicetothosewhowishtosuccessfullycompleteoneofthemostdifficulttrainingregimensintheworldistofocusonthemissionandonthosearoundthem.Hisprescriptionistheoutwardmindset.

Ourorganizationalclientsfindithelpfultoapplytheoutwardmindsetinthefourbasicdirectionsofworkdepictedindiagram11.

Diagram11.TheOutwardMindsetatWork

Apersonconceivingherworkinthewayillustratedinthisdiagramisalivetoandinterestedintheneeds,objectives,andchallengesofeachofthepersonstowardwhomshehasresponsibility—towardhercustomers,directreports,peers,andmanager.Theoutwardlyfacingtrianglesshowthatherobjectivesandbehaviorstakethesepeople’sneeds,objectives,andchallengesintoaccount.AsCaptainNewsonrecommends,herfocusisoutwardonsomethingmuchlargerthanherself—onheressentialcontributiontotheoverallgoalsoftheorganization.Andthinkingofherroleinthiswayrequireshertofocusondoingherworkinawaythathelpsotherstodotheirs.

Thepowerofthisoutward-mindsetapproachcanbeseenintheresultsofaninnovativedebt-collectionagencythathasbuiltitsentiremissionandstrategyinthewaydepictedintheoutward-mindset-at-workdiagram.ThecompanyisCFS2,headquarteredinTulsa,Oklahoma.

BillBartmann,founderandCEOofCFS2,hasknownhisownhardtimes.Havingbeenhoundedbydebtcollectorshimself,hewantedtobuildadebt-collectioncompanythatworkeddifferently—whichistosay,outwardly.

collectioncompanythatworkeddifferently—whichistosay,outwardly.Billandhiscompanyfocusontreatingthosewhoareindebtwithdignityand

respect.Theyoperatefromthepremisethattheirclientsowethemmoneypreciselybecausetheydon’thaveenoughmoneytopaythem.Thetypicalapproachtodebtcollection—aninward-mindsetapproach—istobrowbeatthosewhoowemoneyuntilyousqueezewhateveryoucanoutofthem.Anoutward-mindsetapproach,ontheotherhand,beginswiththinkingaboutthesepeopleandwhattheyareupagainst.Thosewhotakethisapproacharealivetoandinterestedinthechallengesthesepeoplearefacing,andtheirmissionistohelpthemwiththosechallenges.

Withthisapproach,BillBartmannandhispeoplebegancollectingdebtnotbysqueezingtheirclientsformoneybutbyfiguringouthowtheycouldhelpthemmakemoney.Billaskedhisentireworkforcetobeginbrainstormingandexperimentingtoseehowtheycouldbesthelptheirclientsgetjobs.Atfirst,theytriedgivingtheirclientsadviceandsuggestionsaboutwhattodo.Butthisdidn’tseemtohelpmuch.Theyhuddledasacompanytofigureouthowtobemorehelpful,andoneofBill’semployeesofferedthisobservation:“Theycan’tdotheheavyliftingthemselves—they’resobeatdowntheyhavenoget-up-and-goleft.”1

SotheemployeesofCFS2beganwritingrésumésfortheirclients.Theybeganlookingforjobopportunitiesforthem,helpingthemfilloutapplications,andschedulingjobinterviews.Theyranmockinterviewswiththeirclientstopreparethemfortherealthing.Andtheyevenbegancallingtheirclientsonthemorningsoftheirappointmentstogetthemoutofbedearlyenoughtoarriveatthejobinterviewontime!

Fromtheretheybeganhelpinginotherways.Anyheadacheintheirclients’livesbecameanopportunitytohelp.InaninterviewwithHarvardBusinessReview,Billtalkedabouthowtheygetrequestsnowforallkindsofhelp—fromfoodstampstochildcaretohomerepairs.2CFS2hasidentifiedamyriadoforganizationsthatexisttohelppeopleinneedwiththeseandmanyotherservices,andBill’steambringsintheseorganizationstohelpmeettheneedsoftheirclients.Andtheydoallthisforfree.Infact,Billrewardshisemployeesnotforhowmuchdebttheycollectbutforhowmanyfreeservicestheycanprovidetotheirclients!

Fromaninward-mindsetperspective,thisallseemscrazy.Buttheresultsspeakforthemselves.Afterjustthreeyearsintheindustry,CFS2’srateofcollectionwastwotimesthatofanyfirmintheindustry.3Clientsfeelhelpedby

thepeopleatCFS2—someevenfinanciallyrescuedbythem.Andbecausetheirclientshavemoneytheydidn’thavebefore,theyhaveresourcestopaytoCFS2.CFS2hasbecomeapartner—evenafriend—thattheywanttopay.

WeseeintheCFS2storyhowanoutward-mindsetapproachcanmobilizeanentirecompanytoworkonbehalfofitscustomers—notjusttoprovideaproductorservicebuttoenthusiasticallyinnovatetomeetthecustomers’needsandhelpthemachievetheirownobjectives.Inward-mindsetpeopleandorganizationsdothings.Outward-mindsetpeopleandorganizationshelpotherstobeabletodothings.

CFS2providesagoodexampleofanoutward-mindsetapproachwithexternalcustomers.Thesameapproachcanbeappliedinsideorganizations—towardpeers,directreports,andmanagers.

ConsidertheexampleofthelongtimeNBAjuggernaut,theSanAntonioSpurs.TheSpurshaveremaineddominantintheNBAlongpastthetimemanyhavepredictedtheywoulddecline.Theyhavebeenabletodothisdespitetheagingofkeyplayers,theannualturnoverofmanymembersoftheteam,andwould-bechallengersthathavefallenandrisenandfallenagain.WhenyouplaytheSpurs,youplayadynamicallyadaptiveoutward-mindsetorganism.Wesayorganismbecausetheyaresoalivetoeachotherthattheyappeartoactasasingleentity.Whenyouwatchthemplay,younoticethattheballdoesn’tstickinthehandsofanyplayer.Themomentitwouldbemoreadvantageousfortheballtobesomewhereelse,theballmovesthere.Thereisnoegoonthefloorthatkeepsthemostadvantageousmovesfromhappening.

WhenaskedwhatkindsofqualitiestheSpurslookforinplayers,CoachGreggPopovichsaysthattheylookforplayerswho“havegottenoverthemselves.”4AFOXBusinessarticleexpandsonthiscommentandexploreshowtheSpurs’outward-mindsetculturegivesthemasignificantcompetitiveadvantage.5TheauthorattributestheSpurs’successtofourfactors:(1)recruitingforandbuildingselflessnessandteamwork—whatCoachPopovichcalls“relationshipexcellence,”(2)caringforplayersandstaffaspeople,(3)givingplayersandstaffavoice,and(4)achievingtaskexcellencethatisenabledbyrelationshipexcellence.“Wearedisciplined,”CoachPopovichsays,“butthat’snotenough.Relationshipswithpeoplearewhatit’sallabout.Youhavetomakeplayersrealizeyoucareaboutthem.Andtheyhavetocareabouteachotherandbeinterestedineachother.”6

ThiscommitmenttoeachothermakestheSpursplayersfeelaheightenedobligationtobuildtheirskillsandconsistentlyperformattheirbest.Why?

Becausethatiswhattheirteammatesneedfromthem.Theirteammatesneedthemtobecomethebesttheycanbe.Andwithanoutwardmindset,theplayersfeelanobligationtohelpeachothergetbetter.Theyowethattooneanother.

“Popovichunderstands,”theauthorofthearticlewrites,“thatwithoutrelationshipexcellence,taskexcellenceandsuperiorresultsarebuiltonfeetofclay.Becauseheintentionallydevelopsrelationshipexcellenceamongtheteam,theSpursareabletoachievetaskexcellenceandsustainablesuperiorperformance.”7

TheSpurs’coachesandplayersdemonstratethatpeopleareabletoachievefargreaterresultsthantheyalonewouldbewillingorabletodopreciselybecausetheyhavecommittedthemselvestosomethingthatisbiggerthanthemselves—anorganizationalandinterpersonalcausethatrequiresthebestofeachofthem.AllthemembersoftheSpursorganization—fromthegeneralmanagertocoachestoplayers—helpeachothersucceed.Alotofteams—most,infact—arefilledwithpeopleinterestedintheirownsuccess.Suchteamswon’tbeabletoapproachtheSpurs’levelofsustainedsuccessuntilallindividualcontributorsbecomeasinterestedintheircolleagues’successastheyaretheirown.

Nowthatwehaveexploredwhattheinwardmindsetlookslikeinterpersonallyandinorganizationsandtheverydifferentapproachofoutward-mindsetindividualsandorganizations,wewillexploreaprovenmethodologytomovefromaninwardmindsettoanoutwardmindset.

PARTIII

BecomingMoreOutward

8•TheOutward-MindsetPattern

Inchapter7weintroducedtheoutward-mindsetwayofthinkingaboutone’sroleandobligationsatwork(andelsewhere).Ahallmarkofthiswayofworkingisafocusontheneeds,objectives,andchallengesofthosetowardwhomonehasresponsibility.Thosewhoworkwithanoutwardmindsettakeresponsibilityfortheirimpactontheresultsoftheirreports,theircustomers,theirpeers,andtheirmanagers.Theyholdthemselvesaccountablefortheirfullimpactontheoverallresultsoftheorganization.

Aswehaveobservedthosewhoconsistentlyworkinthisway,wehavediscoveredapattern—awayofworkingthatsuchindividualsdemonstrate.They

1.seetheneeds,objectives,andchallengesofothers2.adjusttheireffortstobemorehelpfultoothers3.measureandholdthemselvesaccountablefortheimpactoftheirworkonothers

Engaginginthesethreestepsisapracticalapproachtoimplementingandsustaininganoutward-mindsetwayofworking.YoucanrememberthepatternwiththesimpleacronymSAM—seeothers,adjustefforts,measureimpact.Wecapturethisoutward-mindsetpatternindiagram12onthenextpage.

Thepoweroftheoutward-mindsetpatterncanbeseenintheturnaroundofFordMotorCompany,achangethatbeganwiththehiringofanewCEO—AlanMulally.

Diagram12.TheOutward-MindsetPattern

Mulallyspentthirty-sevenyearsatBoeing,wherehewasinstrumentalinturningaroundBoeing’scommercial-jetlinerbusiness.AnativeIowanwithadisarming“aw-shucks”mannercoupledwithsteelyperseveranceandaninnateknackforteambuilding,hewashiredaspresidentandCEOatFordinSeptember2006.Thecompanywasinadesperatestate.Bleedingattherateof$17billionperyear,itputallitsremainingchipsonAlanMulally.1

AsMulallysoondiscovered,nooneatFordfeltresponsiblefortheproblemsofthecompany.Thesituationwaslikewhatwefindwithorganizationsgenerally—peopleusuallyratethemselvesmuchmorefavorablythantheyratetheircompanies.Fordwaslosingbillionsofdollarsannuallywhiletheindividualsatthecompanybelievedtheythemselveswereperformingwell.

MulallybroughttoFordthemanagementapproachthathadbeensosuccessfulforhimatBoeing.Heledthroughamechanismoftwoweeklymeetings.Thefirst,theBusinessPlanReview,orBPR,asitiscommonlyreferredtoatFord,isheldeveryThursdaymorning.ImmediatelyfollowingtheBPR,theleadersreconveneinasecondmeeting,theSpecialAttentionReview,

BPR,theleadersreconveneinasecondmeeting,theSpecialAttentionReview,orSAR,todevisetacticalsolutionsfortheissuesidentifiedduringtheBPR.

MulallytrainedhisexecutiveteamtocometotheBPRpreparedwithchartsthatshowedperformanceagainstthecompanyplanforeachareaofresponsibility.Hehadthemcolor-codetheircharts:anythingthatwasonplanwastobecodedgreen,anythingatriskofgoingoffplanwastobecodedyellow,andanythingoffplanwastobecodedred.Changesfromthepriorweekweretobecodedblue.Theycouldn’thaveanyoneelsereportforthem;eachmemberoftheexecutiveteamwasresponsibleforhisorherownpartofthebusiness.“ThisistheonlywayIknowhowtooperate,”Mulallyexplainedtohisteamintheirintroductorymeeting.“Weneedtohaveeverybodyinvolved.Weneedtohaveaplan.Andweneedtoknowwhereweareontheplan.”2MulallypointedtotenBPRruleshehadpostedonthewalloftheroom3:

•Peoplefirst•Everyoneisincluded•Compellingvision•Clearperformancegoals•Oneplan•Factsanddata•Proposeaplan,“find-a-way”attitude•Respect,listen,help,andappreciateeachother•Emotionalresilience…trusttheprocess•Havefun…enjoythejourneyandeachother

MostoftheexecutiveswerenotverykeenonMulally’sweeklyreportingmechanism.Oneevenwalkedoutonthefirstweek’smeeting,chafingatwhatsoundedlikeanoverloadofunhelpfulweeklymeetingprep.4Dutifully,however,alltheteammemberscamethenextweekwithchartsprepared.Thecompanywaslosingmoneyhandoverfist,butastheexecutivespresented,eachandeverychartwascodedgreen.

Why,despitethecompany’swoefulperformance,wereallthechartsgreen?Becauseyoucouldn’tbewrongatFordandkeepyourposition.Sonoonewaswrong.Thecompanywasunderperforming,sure,theexecutiveswouldprivatelyadmit,butI’mnot.Jasonmightbe,orBeth,orAsh,butnotme.AtleastI’mperformingatahigherlevelthantheyare.Thesituationwouldbealotworseif

notforme.Mulallywastroubledbytheseaofgreencharts,buthewasn’tsurprisedbyit.

Hewasnew,andtheteamwasstillunsureabouthim.Heunderstoodthat.Buthealsoknewthatthiscouldn’tcontinueforlongifthecompanywasgoingtosurvive.Hecontinuedhisdailyworkwiththeteaminpartsotheywouldknowthatitwassafeforthemtopresentthetruth.Butwhentheyconvenedagainthenexttwoweeks,thechartswerestillgreen.Byhalfwaythroughthethirdweek’smeeting,Mulallyhadseenenough.“We’regoingtolosebillionsofdollarsthisyear,”hesaid,interruptingthereporting.“Isthereanythingthat’snotgoingwellhere?”5

Histeamnervouslylookedattheboardroomtabletop.Noonesaidanything.Thenextweek,justbeforethenewFordEdgewasabouttoshipoutof

Oakville,Ontario,Canada,atestdriverreportedaproblemononeofthetestvehicles:thetailgatehadanactuatorproblem.MarkFieldshadadecisiontomake.

FieldsledFord’soperationsintheAmericas.Hadthecompanypromotedfromwithin,hewouldhavebeenthenewCEOinsteadofMulally.SoFieldsfiguredthathisdaysatFordwerenumbered.Withthesefactsinmind,heweighedhisoptions.Theproblemonthetailgatemaywellturnouttobeananomaly,hethought.Wecouldshipandeverythingwouldbefine.Ontheotherhand,ifthevehiclesweren’tfine,itwouldbebigtrouble.MulallywasdemandingthateverythingFordproducedbefirstinclass.ShinynewFordEdgeswithfaultytailgateswouldcreateaverypubliccounterpoint.Notknowingthenewbosswellyet,Fieldsknewhecouldn’ttakethatchance.Sohewouldpostponethelaunch.Hehadsettleditinhismind.

Thatleftamoredifficultdecision:WashegoingtotellanyoneabouttheproblemattheThursdayBPR?Again,heweighedhisoptions.Wecanprobablygetthisfixedandshipthecarswithoutanyoneknowingabouttheissue.Ontheotherhand,whatifwecan’t?ThatthoughtsuggestedthathetellMulallyandhiscolleaguesthetruth.Butthiskindoftransparencywasn’tsafeatFordatthetime.Tellingthetruth,exposingchallengesinyourareaofoperations,usuallyresultedinlosingyourjob.Thesewerehard-chargingprofessionalsforwhomotherpeople’smistakeswerelikechumtosharks.Fieldsfeltlikeadeadman.Ifheshippedandthevehicleswerefaulty,hewasagoner.Buthewassurethatthesamefateawaitedhimifhecametothemeetingand,inafinalblazeofglory,toldeveryonethattheEdgehadaproblem.

Hethoughtitoverandfinallydecidedthatsincehewasdeadanyway,hewasgoingtocallitlikeitwas.Hepreparedhischart.Inred.

goingtocallitlikeitwas.Hepreparedhischart.Inred.Fieldsfiledintotheroomonweekfourastheonlypersonontheteamwitha

chartthatwasanythingbutgreen.Whenitwashisturn,hetriedtobenonchalant.WhentheFordEdgechartcameup,hesaid,“AndontheEdge,we’rered;youcanseeitthere.”

Silence.EveryonearoundthetableknewwhatMarkFieldsknew.Hewasasgoodas

gone.Everyoneexceptone,andthatpersonstartedclapping.“Mark,”Mulally

smiledasheclapped,“thatisgreatvisibility.”Thenheturnedtotherestofthegroupandaskedthequestionthatwasthebeginningoftheireducationintheoutwardmindset:“WhocanhelpMarkwiththat?”

Atthatinvitation,anumberofFields’scolleaguesjumpedinwithoffers.OnesaidthathehadseenthatissueonanothervehicleandwouldgetthatinformationtoFieldsimmediately.Anotherofferedtoquicklygetagroupofhistop-flightengineerstoOakvilletohelponanyredesignthatmightneedtohappen.Andsoon.

Interestingly,intheBPRthefollowingweek,Fieldswasstilltheonlypersonwithachartthatwasanythingbutgreen.Noonewasyetwillingtofollowhisleadandgiveanhonestaccountingbecauseeveryonehadexpectedhimtobedismissedafterthepriorweek’smeeting.WhenheshowedupthefollowingweekwithhisEdgechartstillred,butmovingtoyellow,andMulallystillsmilingathim,theothersbegantorealizethatMulallywasforreal.“Youaren’tred,”Mulallyinsisted.“Theissueyou’reworkingonisred.”Andhewantedthemtohelpeachotherwiththechallengestheyeachfaced,somethingtheycoulddoonlyiftheycameforwardwiththeirchallenges.Theweekafterthat,thechartsaroundtheroomhadsomuchredthatthemeetinglookedlikeacrimescene.6

Theteamcontinuedtoworkthiswaytogether,regularlyreportingontheirresponsibilitiesandlearningaboutthechallengestheircolleagueswerefacing.“Whocanhelpwiththat?”wasascommonaquestionasthechartswereredandyellow.Individuallyandcollectively,teammembersstayedfocusedonnailingtheirownresponsibilitiesanddoingsoinwaysthathelpedtheircolleaguesnailtheirs.Theytrackednotonlywhattheyeachdidbutalsotheirimpactoneachotherandtheirvariousstakeholders.

Youmayknowtherestofthestory.Workingthiswaytogetherandspreadingthishelpful,self-accountableapproachthroughoutthecompany,Fordwasabletopullitselfoutofadeepditch—tosuchadegreethatitwasabletogetinfront

topullitselfoutofadeepditch—tosuchadegreethatitwasabletogetinfrontofthefinancialcrisisof2007–08astheonlyAmericanautomobilemanufacturerthatdidn’thavetotakefederalmoneystosurvive.AlanMulallyretiredfromFordinthespringof2014andjoinedtheboardofGoogle.HisreplacementatFordwasMarkFields.

ThinkabouttheFordturnaroundstoryinrelationtothethreeelementsoftheoutward-mindsetpatternthatwediagrammedearlierinthechapter.

Regardingthefirststep—seeingtheneeds,objectives,andchallengesofothers(andtheorganizationasawhole)—theBPRprocessitselfgavethemembersofMulally’steamvisibilitybothintotheirowncontributiontothewholeandintotheneeds,objectives,challenges,andactivitiesoftheircolleagues.Itwasuptoeachpersontoengageintheprocesswithanoutwardmindset,whichtookawhiletohappenatFord.HadMulallynotruntheBPRprocesswithanoutwardmindsethimself,theprocesswouldnothaveyieldedthebenefitwearespeakingofhere.ButbecauseMulally’smindsetwasoutwardinthewayheworkedwithhisteamandconductedthesemeetings,thatforumofferedtheFordteamanopportunitytoseetheirownrolesinrelationtoothers.

Thesecondstepoftheoutward-mindsetpatternisadjustingone’sworktobecomemorehelpfultoothers.Thisstepnaturallyfollowsthefirst.Oncetheteamcouldseethechallengesfacedaroundthetable,Mulallyinvitedthemtostepupandhelp.“WhocanhelpMarkwiththat?”wasmorethanaquestion.ItwasastatementabouthowMulallywantedhispeopletotakeresponsibilitynotjustfortheirownpartintheoverallprojectbutalsofortheirimpactontheircolleagues’abilitytosuccessfullyfulfilltheirresponsibilities.

Lastly,theygatheredtogethereachweektoseeifthehelptheywereprovidingwasmakinganydifferenceintheircoworkers’abilitytogetresults.Thisisthethirdstepintheoutward-mindsetpattern:measuringimpact.Mulally’sprocessgavetheFordteamatleastaonce-a-weekwayofassessingwhethertheadjustmentsbeingmadebythosearoundtheroomwereactuallyhelping.Eachweektheyhadtheopportunitytoassesstheirimpactononeanotherandthecompany’soverallresultsandmakenecessaryadjustments.

TheturnaroundatForddependedontheteam’sengagingineachstepoftheoutward-mindsetpattern:seeothers,adjustefforts,andmeasureimpact.Inthenextchapter,wetakeadeeperlookateachofthesethreeelementsoftheoutward-mindsetpattern.

9•ApplyingtheOutward-MindsetPattern

Inchapter8weintroducedtheoutward-mindsetpattern—seeothers,adjustefforts,andmeasureimpact.Inthischapterwewillexplorehowtobeginusingthisapproachbysharinghowdifferentindividualsandorganizationshavesuccessfullyimplementedthethreeelementsofthispattern.

SeeOthers

Afewyearsago,Arbingerwasengagedbyalargepowercompanytohelpfindwaystosavetimeandmoneybyreducingtheinordinateamountoftimeleadersspenteachyearmiredinplanningthenextyear’scapitalbudget.

Wespentaboutthirtyminutesbreakingdownthebudgetingprocessintoitscomponentparts.Thefortyorsoleadersintheroomgatheredintogroupsorteamsthatwereresponsibleforeachpartintheprocess:theplannersformedoneteam,engineersanother,andsoon.Onthewhiteboard-paintwalls,eachteamconstructedanoutward-mindsetdiagramforthatgroup’sstepinthebudgetingprocess.Theteamswrotetheirpartoftheprocessinthecenter.Inacirclearoundthat,theylistedthenamesofthepeopleandgroupsthattheyaffectedinthebudgetingprocess.Theythendrewtrianglesfacingoutwardineachdirectionandwrotenexttoeachgroupwhattheyunderstoodoftheirneeds,objectives,andchallenges.

Afterafewminutes,thewallswerecoveredwithdiagramsthatlookedsomethinglikediagram13.

Allmembersofthevariousgroupscirculatedaroundtheroomtoseeiftheyshouldaddtheirownorothers’namestoanyofthediagramsorwhethertheyshouldaddanykeyneeds,objectives,orchallengesthatweren’tyetlisted.Everyonehadfreereintoamendanydiagram.

Seeingthemselvescorrectlyinrelationtoothers,theleaderswerenowpositionedtobeginseeingothersmoreclearlythanbefore.Theyonlyneededtostartlooking.Weinvitedtheteamstotaketurnsatthefrontoftheroom.Everyoneelsewasgiventheopportunitytoaskquestionsofeachgrouptolearnasmuchaspossibleaboutthatteam’sneeds,objectives,challenges,and

asmuchaspossibleaboutthatteam’sneeds,objectives,challenges,andactivities.

Diagram13.TheOutward-MindsetProject

ThefirstgroupwasthePlanningteam.Planninginitiatesthebudgetingprocessatthebeginningofeveryyearbylookingatprojectedcommunityenergy-consumptionneedsandenergy-productionpossibilitiesandultimatelyarrivingatamixofprojectsthatwouldneedtobeengineeredandconstructedinthefollowingyear.Thisprocesstookfourmonths.Historically,theplannershadpassedtheirplanstothenextgroup,theEngineeringteam,onMay1.Inturn,theengineerswouldtaketwoandahalfmonthstodesigntheprojectsandthenpasstheirworktothepeoplewhohandledstepthreeoftheprocess,andsoon.

Somethinginterestinghappenedwhenpeoplebeganaskingquestionstomorefullyseeandunderstandtheneedsandobjectivesoftheplanners:theplannersimmediatelybecameinterestedintheneedsandobjectivesoftheirquestionersaswell.Whatstartedasaquestion-and-answersessionevolvedintoaconversationinthemiddleofwhichthegroupmadeastartlingdiscovery:theplannersknew80to90percentoftheprojectsthatwouldgointhefinalplanby

plannersknew80to90percentoftheprojectsthatwouldgointhefinalplanbymid-January.Ittookanotherthreeandahalfmonthstofinalizethelast10to20percent.Whentheplannerssawthis,theysuddenlyknewanobviouswaytoshavethreemonthsoffthebudgetingtimeline:theplannerswouldnolongerholdthewholebatchofprojectsuntilallofthemwerefinalized.Beginningimmediately,theywouldforwardtheindividualprojectsthatwouldgointothefinalplanassoonastheyknewthem.ThismeantthatEngineeringcouldstartitspartoftheprocessinJanuaryratherthanMay.Thischangemadeahugedifference.Andthatwasjustthefirstgroup.

Whycouldn’tthatchangehavehappenedearlier?Itcouldhave,ofcourse.Thesewerehighlycompetentpeople.Butwithoutaframeworkthatmakesthesolutionsthatalreadyexistinanorganizationdiscoverable,manytremendouslyhelpfulsolutionsliedormant.It’sasifanorganizationconsistsofmanypotentialBluetoothconnections,mostofwhichhavenotbeenturnedon.Whenyoumakethosedevicesdiscoverabletoeachother,theycanbegintotalk.Andwhentheydo,theyfigureouthowtomakethingsbetter.Youcanmakethemdiscoverablebyinstitutingopportunitiestoseeothers.ThiswasoneofthemainbenefitsoftheBPRprocessthatAlanMulallyinstitutedatFord,aswediscussedinchapter8.TheweeklymeetingsprovidedanoccasionfortheFordexecutiveteamtolearntoseeeachother.

JournalistBrendaUeland,inherinsightfulessayonlistening,TellMeMore:OntheFineArtofListening,providesinterestinginsightregardingthesimplepotencyoftryingto“seeothers”throughlistening.“Listeningisamagneticandstrangething,acreativeforce,”shewrites.“Thinkhowthefriendsthatreallylistentousaretheoneswemovetoward,andwewanttositintheirradiusasthoughitdidusgood,likeultravioletrays.Thisisthereason:Whenwearelistenedto,itcreatesus,makesusunfoldandexpand.Ideasactuallybegintogrowwithinusandcometolife.”1

Uelandthendescribesthedifferencebetweenhowsheusedtointeractwithothersandhowshelearnedtointeractwithpeopleaftershelearnedtobeinterestedinthem.Thinkabouthowherdescriptionofherformerwaysummarizessomuchofwhathappensinthesalesprocessesoforganizationsandincompanymeetings,aswellasininteractionsinoursociallives:“Before…whenIwenttoapartyIwouldthinkanxiously,‘Nowtryhard.Belively.Saybrightthings.Talk.Don’tletdown.’Andwhentired,Iwouldhavetodrinkalotofcoffeetokeepthisup.NowbeforegoingtoapartyIjusttellmyselftolistenwithaffectiontoanyonewhotalkstome,tobeintheirshoeswhentheytalk;totrytoknowthemwithoutmymindpressingagainsttheirs,orarguing,or

changingthesubject.No.Myattitudeis,‘Tellmemore.’”2

RobDillonexperiencedthesamekindofshiftthatBrendaUelanddid.Robisthefourth-generationmemberofhisfamilytoleadDillonFloral,awholesalefloristthatservesPennsylvaniaandneighboringEasternSeaboardstates.Hiscompanyfacesachallengingmarket,asitshistoricalcustomers,smalllocalflorists,havebeendecliningsteadilyinnumberwiththeriseofthesuperstoresthatsellflowers.Toretainitsshrinkingcustomerbase,DillonFloralincludedin-personcustomervisitsasanimportantpartofitsstrategy.ButRobdetestedthesevisits.Heknewthathiscustomerswerestruggling,andhedidn’tlikehowhefeltwalkingintothestoresofstrugglingcustomersandtryingtopersuadethemtobuythisorthatDillonFloralproduct.Consequently,overtheyears,Robmadefewerandfewervisits—until,thatis,helearnedthepowerofreallyseeingothersthatUelandwritesabout.

Robdislikedengagingwithhiscustomersbecausehehadbeenmakingself-focusedvisitsratherthanothers-focusedvisits.Hehadmainlybeeninterestedintryingtogetthepeoplehewascallingontobuyhisproducts.HeinteractedwithhiscustomersinthesamewayUelandinteractedinsocialgatheringsbeforeshelearnedsimplytogetinterestedinandbeopentoothers.Robfeltthepressuretoperform,toimpress,tosell.“Iusedtowalkintomeetingswithcustomerswithanagenda,”hesaid,“andIhadawholebunchoffear.”Hesaysthatwhenhelearnedjusttogetinterestedinseeingothers,thisallchanged.

TodaywhenRobcallsoncustomers,hisonlythoughtis,HowcanIhelp?Heisn’ttheretoimpressthecustomers,andhecertainlydoesn’tperform.Hejustwantstofigureoutwhathecandotohelpthem,andthatstartswithseeing—tryingtounderstandtheneeds,objectives,andchallengesofothers.Withthisnewfocus,Robnowspendsonetotwodayseveryweekcallingoncustomers.He’sbeensurprisedtodiscoverthathelovesit.Asadirectresultofthis,clientsthathadquitpurchasingfromDillonFloralhavesincereturned,andmanythathadbeenthinkingofturningelsewhereinsteadfeltarenewedcommitmenttotheirpartnership.

Robdescribesthechangethisway:“Sincelearningabouttheoutwardmindset,IsimplygointomeetingswithcustomerswantingtolearnwhateverIcanabouttheirneeds,objectives,andchallenges.Iwouldratherwalkintoaflowershopstupidthansmart.IsaytothemthatIwanttolearnhowwecouldbemorehelpfultothem.AndthenIjustlisten.Seeingthemaspeople,Icanveryeasilyempathizewiththemnomatterwhattheysay.Thereisnothingtofear.I’mjusttheretohelp.”

Thiscommentisrevealing.When,withanoutwardmindset,Robisreally

Thiscommentisrevealing.When,withanoutwardmindset,Robisreallyinterestedinseeingothers,henaturallyfeelsadesiretofindwaystobemorehelpful—whichbringsustothesecondstepintheoutward-mindsetpattern:adjustingourefforts.

AdjustEfforts

Alongtimecolleagueofours,TerryOlson,tellsofthefollowingexperiencethatbeganinaworkshophewasconductingforpublic-schoolteachers.Theywereusingaroomatalockdowneducationalfacilityforelementary-agedchildrenwithseverebehavioralproblems.Someoftheteachersfromthatschoolwereeavesdroppingatthebackoftheroom.

Inthemiddleofthepresentation,oneoftheseteachersatthebackaskedaquestionabouthowtohandleaboywhowasbecomingincreasinglyunmanageable.Infact,althoughtheyhadfrequentlyusedthe“time-out”room(asmall,locked,carpetedcubicleusedtoisolatedisruptivechildren)todisciplinetheboy,heseemedtobegettingworse.Hewouldsettledownbrieflyafteratime-outexperienceandthenwouldbecomeevenmoredisruptivethanbefore.Themostdramaticofhisanticshadoccurredthepriorweek,whenaservicemandeliveringsodatothevendingmachinesleftaschooldooropenwhilehemaneuveredaloadedhandtruckinside.Theunmanageableboy,Toby,hadjustboltedfromhisclassroom(afrequentoccurrence)andwashidingintherefreshmentareawhenthedeliverygavehimtheopportunitytoescape.

Runningoutintotheschoolyard,Tobytoreoffallhisclothesandbeganrunningthroughthepark.Beforelong,Toby,naked,wasbeingchaseddownbyascoreofpanickedteachers.“So,whatdoyoudowithastudentlikethat?”theteacherasked.

Terrytoldthequestionerthathehadnomagicsolutionbutsuggestedthatiftheboybecameincreasinglyunmanageableafterbeinglockedinthetime-outroom,maybehewasnotrespondingtotheparticularpunishmentasmuchashewasrebellingagainstbeingseenandtreatedlikeanobject.“Objectsdowhatyouwantthemtodo,”Terryexplained.“Youcanthrowawashclothinthesink,kickasoccerballacrossafield,orpushclothesintoalaundrybag.Butwhenyoutrytothrow,kick,orpushpeople,theyoftenresist.Tobymightberesistingtheideaofbeinga‘thing.’”

TerrysuggestedtotheteachersthatifnoneoftheirdisciplinarytechniqueswereworkingwithToby,perhapstheyshouldconsideradifferentapproach.Insteadofchasinghimdownwhenheboltedfromclassandputtinghiminthetime-outroom,Terryinvitedthemtoimaginenewpossibilities.Hesaid,“What

time-outroom,Terryinvitedthemtoimaginenewpossibilities.Hesaid,“Whatifyouaskedthisquestionofyourselves:IfIweretogivemyhearttothisboy,whatwouldoccurtometodo?”Hetheninvitedthemtoactonwhatoccurredtothemtodo.

Twoweekslater,Terrywasbackinthefacilityforanotherworkshopsession.Hewonderedwhat,ifanything,haddevelopedwithToby.Theteachersfromtheschoolwereeagertoreport.Onewomanrecountedthefollowingexperience:

Tobyranoutofmyroomtwodaysafterwehadtalked,andinsteadofsendingmyaideafterhimimmediately,Icontinuedteaching.Afterafewminutes,IturnedtheclassovertomyaideandwentlookingforTobymyself.Ifoundhimintheauditorium,“hiding”underablanket.Tobyhidasmanysecondgradersdo—hislegwasstickingoutfromundertheblanket.Iaskedmyselfthatquestion,“IfIweretogivemyhearttothisboy,whatwouldoccurtometodo?”Immediately,IthoughtofthosedaysasachildwhenIhadplayedhide-and-go-seek.Almostonanimpulse,IgotdownonthefloorandcrawledundertheblanketwithToby.Hewasmorethanstartled.Isaid,“Look,Ican’tplayhide-and-goseekwithyounow;I’vegotaclasstoteach.Butifyoustillwanttoplaywhenit’srecess,Iwillcomeandfindyou.”

AtrecessIwentbacktotheauditorium.Itseemedhehadnotmoved.Ipulledtheblanketoffandsaid,“Foundyou!”IthenexplainedIwantedtobe“it”againandthrewtheblanketovermyhead.“I’llcounttotwenty-five,”Isaid.HestoodthereuntilIgottoten.Thenhehesitatinglyranoutoftheauditorium.Isearched.Ifoundhiminaclassroompressedintoaverticalbroomcloset.Istartedcountingagain.Ifoundhimforthethirdtimeasthebellrang.IexplainedthatIhadtogoteachnow.

Twentyminuteslaterhealmostsneakedintomyclassroomandslidintohischair.Hehasnotbeenperfect,butIhavebeendifferent.Whenhemisbehaves,thatquestionofyourshasbecomeanechoinmybrain:“IfIweretogivemyheart…?”SometimesIstopeverythingandaskhimaquestion.SometimesIaskhimtohelpsomeoneelse.SometimesIexplainthatIneedhelp.SometimesIexplaintohimthathejust“can’tdothat,”andIgoon.Hesettlesdown.Itisaday-by-daything,butIamdifferentwithhim.Heseemsdifferenttome,evenwhenheactsup.

Thisteacherdiscoveredwhatalloutwardindividualsandorganizationsknow:

realhelpfulnesscan’tbemadeintoaformula.Tobeoutwarddoesn’tmeanthatpeopleshouldadoptthisorthatprescribedbehavior.Rather,itmeansthatwhenpeopleseetheneeds,challenges,desires,andhumanityofothers,themosteffectivewaystoadjusttheireffortsoccurtotheminthemoment.Whentheyseeothersaspeople,theyrespondinhumanandhelpfulways.Theynaturallyadjustwhattheydoinresponsetotheneedstheyseearoundthem.Withanoutwardmindset,adjustingone’seffortsnaturallyfollowsfromseeingothersinanewway.

Thisbringsustothethirdelementoftheoutward-mindsetpattern—measuringone’simpactonothers.

MeasureImpact

Forpeoplewhoareimplementingtheoutward-mindsetpattern,whatmightmeasuringimpactlooklike?Andhowmightapersonororganizationgoaboutdoingit?Considerthefollowingstories.

AttorneyCharlesJackson,athird-yearassociatelawyeratamidsizedlawfirm,wasattendingaleadershipcoursewewereconducting.Charlesspentabout90percentofhistimeworkingonissuesforclientsthathadbeenbroughttothefirmbypartnersinthefirm.Hespenttheother10percentofhistimeonclientworkhehimselfhadgeneratedforthefirm.Aswediscussedworkingwithanoutwardmindset,Charlescouldnotgettwoofhisownclientsoutofhismind.BothofthemwereunhappywiththejobCharleshaddone.Butuntilthatmoment,Charleshadn’tbeenoverlyconcernedaboutthis.Noteveryclientisgoingtobehappywithyou,hehadassuredhimself.There’snothingyoucandoaboutthat.Besides,Ididthework,eveniftheyweren’thappywithsomeaspectsofit.Duringtheworkshop,wepresentedtheideathatworkingwithanoutwardmindsetrequiresthatpeopletakeresponsibilitynotjustforwhattheydobutalsofortheimpactofwhattheydo.AsCharlesbeganconsideringthisidea,theseclientsituationsstartedtoseemabitdifferenttohim.

OneoftheclientshadbeenunhappywithhowlongithadtakenCharlestohandlehisissue.Untilthen,Charleshadbrushedthecomplaintaway.Ashenowthoughtaboutit,however,herealizedthathisclienthadalegitimategripe.Charleshadn’tgiventheworkhighenoughpriority,andhisslowpacehadcreateddifficultiesforhisclientthathehadneverapologizedfororaddressed.

ThesecondclienthadbeensurprisedbythebillCharlessenthim.Charleshatedtalkingaboutbillingandhadavoidedtheconversationaltogetherwiththisclient.ThefirsttimetheclientlearnedaboutCharles’scostwaswhenhe

client.ThefirsttimetheclientlearnedaboutCharles’scostwaswhenhereceivedtheinvoiceCharleshadsent.

AsCharlesconsideredhisimpactontheseclients,hefeltheshouldreturntheirmoney.Sohedid.Oneoftheseclientslivedinadifferentstate,soCharleswrotealetterofapologyandencloseditwithacheck.TheotherclientlivedinCharles’scity,soCharlesofferedhisapologyanddeliveredthecheckinperson.

Howmanytimesdoyousupposeattorneyshavewillinglyandontheirownreturnedthemoneyclientshavepaidthem?

CharlesreturnedthemoneyinMayofthatyear,andhebegantrackinghisimpactonhisclientsbycheckinginwiththemonaregularbasistomakesurethathewasmeetingorexceedingtheirexpectations.Thensomethinginterestinghappened.Theseclientsstartedtalkingtotheirfriendsandacquaintancesabouttheirhonestandconscientiouslawyer.ByJuly,Charleswasreceivingsevennewclientmattersperweek.ByNovember,thatnumberhadgrowntothirteenperweek,andCharleswasemployingthreeofhislaw-firmcolleaguesnearlyfull-timeonclientworkhehadbroughtin.InMarch,helefthisjobtostarthisownlawfirm.

AllofthishappenedbecauseCharlesmadeadisciplinedefforttotrackandholdhimselfaccountableforhisimpactonhisclients.Hecalledhisregularcheckinswithhisclientsself-accountabilitychecks.Thisapproachtomeasuringone’simpactrequiresnothingbutawillingnesstostayinregularconversationswithothersaboutwhethertheyfeelone’seffortsarehelpingthemornot.

Anotherwaytomeasureimpactistofindmetricsthatshowapersonororganizationwhatothersareabletoaccomplishorachieveasaresultoftheirefforts.ThiswaswhatanonprofitorganizationcalledHopeArisingfoundawaytodo.

HopeArisingisdedicatedtoassistingorphanedandat-riskchildreninruralEthiopia.Eagertomeetanurgentneedforcleanwaterinthedrought-strickenareaswherethesechildrenlive,theteamdiligentlyworkedtoimprovetheirabilitytodelivermoreandmorecleanwater.Naturally,theymeasuredeffortsintermsoftheiroutput:gallonsofcleanwaterdelivered.

WhentheHopeArisingteamlearnedabouttheoutward-mindsetpattern,theysawthatalthoughtheyhaddiscoveredaneedandwereworkingonadjustingtheireffortstomeetthatneed,theyhadneverthoughtabouthowtomeasuretheimpactoftheirwork.Consequently,theydidn’tactuallyknowwhethertheyweremeetingtheneedsoftheorphanedandat-riskchildrentheyweretryingtohelp.Theybegantoconsiderhowtheycouldmeasuretheiractualimpact.

Theyknewthattheyneededtoassesswhatwashappeningontheground.“Whatkindofmetric,”oneteammemberasked,“wouldshowusourimpactandnotjustouroutput?”“Whatimpactdothepeoplewant?”anotherresponded.“Whataretheyhopingcleanwaterwilldoforthem?Ifwehadanswerstothosekindsofquestions,maybewecouldfigureoutwhatweshouldbemeasuring.”

Withthesequestionsinmind,theteamstartedtalkingtovillagersacrosstheregion.Inhutafterhuttheyheardthesamething:“Weneedcleanwaterbecauseweneedourkidstobeabletogotoschool.Whenourkidsaresickfromdirtywater,theymissschool.Andifkidscan’tgotoschool,thetravelingschool-teachersdon’tgetpaid.Sotheymoveontoothervillages.Butifourkidsdon’tgeteducated,they’llneverescapethispoverty.”

ThiswasarevelationtotheHopeArisingteamintwoways.Firstofall,theyhadfoundawaytomeasuretheirimpact:numberofdayschildrenareinschool.Measuringthiswouldshowthemtheirimpactonwhatmatteredmosttotherecipientsoftheirservices,andtheycouldeasilygetthisdatafromlocalgovernments.Thesecondrevelationwasthis:theyweren’treallyinthewater-deliverybusiness;theywereinthehelping-kids-getto-schoolbusiness.Thisrealizationgotthemthinkingaboutallkindsofwaystheycouldbehelpinginadditiontoensuringthedeliveryofcleanwater.

AsHopeArisingdiscovered,engaginginthefirsttwostepsoftheoutward-mindsetpatternisnotenough.Ifwedon’tmeasuretheimpactofoureffortsontheobjectivesofthoseweareserving,wewillremainblindtoimportantwaysweneedtoadjustandwillendupnotservingotherswell.

10•Don’tWaitonOthers

IfyouhavereadeitherLeadershipandSelf-DeceptionorTheAnatomyofPeace,youwillbefamiliarwiththecharacternamedLouHerbert.TheinspirationfortheLoucharacterwasamannamedJackHauck,thefounderandlongtimeCEOofTubularSteel,aSt.Louis–basednationaldistributorofsteelandcarbonproducts.Tubularhadengagedoneoftheworld’sbest-knownconsultantstohelpitovercomethetoxicinfightingthatplaguedtheseniormanagementteamandstymiedthegrowthoftheentirecompany.Aftermonthsoftryingoneapproachafteranotherwithoutsuccess,Jackaskedthisconsultantifheknewofanyotherapproachthecompanycouldtry.TheconsultantwasacquaintedwithArbinger’sworkandrecommendedthatJackexploreourideas.

DuringourfirstmeetingwithJackandhisteam,wefocusedonhelpingeachexecutiveteammemberreassesshisorhercontributiontothechallengesthecompanyfacedbycarefullyconsideringthefollowingstatement:AsfarasIamconcerned,theproblemisme.

AseagerasJackwastosolvehiscompany’sproblems,hestruggledearlyontoapplythisstatementtohimself.“Iwantyoualltogetthemessage,”hesaid.“I’mgoingtohavepostersmadeandputupalloverthebuilding.”Then,pointinghisfingerattheassembledexecutivesandofficers,hesaid,“Don’tforget:Asfarasyouareconcerned,theproblemisyou.”Eyesrolled,andpeopledroppedtheirshakingheadsintotheirhands.Itissoeasytoleaveoneselfoutoftheequationwhenconsideringanorganization’sproblems,evenwithoutrealizingoneisdoingso.

EventhoughtheissuesatTubularwerenotsimplytheproblemsofasingleperson,itwasclearthatnoproblemcouldbesolvedifindividualswerenotwillingtoaddresshowtheythemselveswerepartoftheproblem.IfyourecalltheFordstoryfromchapter8,you’llrememberthattheunwillingnessofteammemberstostepforwardandadmittheircontributiontothecompany’sproblemswastheprimaryissuethatAlanMulallyhadtocrackbeforeanythingcouldimprove.GiventhehistoryatFord,turningoutwardseemedtoopersonallyriskyatthetimeformostmembersoftheleadershipteam—sorisky,infact,thattheyhad,inessence,decidedthattheywouldratherthecompanyfailthanadmit

andaddresstheircontributionstoitsproblems.Thatis,untilonepersonwaswillingtomakethefirstmoveandturnoutwardwithoutanyassuranceofwhatotherswoulddo.

Sowhilethegoalinshiftingmindsetsistogeteveryoneturnedtowardeachother,accomplishingthisgoalispossibleonlyifpeoplearepreparedtoturntheirmindsetstowardotherswithnoexpectationthatotherswillchangetheirmindsetsinreturn.

Thiscapability—tochangethewayIseeandworkwithothersregardlessofwhethertheychange—overcomesthebiggestimpedimenttomindsetchange:thenatural,inward-mindsetinclinationtowaitforotherstochangebeforedoinganythingdifferentoneself.Thisisthenaturaltrapinorganizations.Executiveswantemployeestochange,andemployeeswaitontheirleaders.Parentswantchangeintheirchildren,andchildrenwaitforthesameintheirparents.Spouseswaitonchangeineachother.

Everyonewaits.Sonothinghappens.Ironically,themostimportantmoveinmindsetworkistomakethemoveone

iswaitingfortheothertomake.Diagram14illustratesthismove.Thetopofthediagramdepictstwopeople—meandanother—whose

mindsetsaremutuallyinward.Bothofushave,ineffect,turnedourbackstotheother’sneedsandobjectives.Fromthisstance,eachofusiswaitingtobeseenbytheother.Iwanttheotherpersontobegintoseeandconsiderme—myviews,objectivesandneeds.OnsomelevelImayrealizethattheotherpersonwantsthesamefromme,butforthereasonsdiscussedinchapter5,Iresist.

Diagram14.TheMostImportantMove

ThemostimportantmoveconsistsofmyputtingdownmyresistanceandbeginningtoactinthewayIwanttheotherpersontoact.Thismoveisdepictedinthebottomhalfofthediagram,whichillustrateswhatshouldbethemaingoalofanyefforttochangemindset:toequippeopletochangetheirownmindsetsevenwhenothersarenotyetreadyorwillingtochangetheirs.

Wouldourorganizationsbebetteroffifallofusweretoturnoutwardinourworkwitheachother?Yes.Butthispreferredstatecanbereachedonlyifsomearewillingtochangeevenwhenothersdonot—andtosustainthechangewhetherornotothersreciprocate.

Thiskindofunilateralchangeistheessenceoftrueleadership.Unfortunately,thosewhomakethismovearetoorare.Peopletendnottomakethismovepreciselybecausetheinwardnessofthosewithwhomtheyareengagedgivesthemallthejustificationtheyneedtostayinwardthemselves.AtTubular,JackHauck’sinwardmindsettowardhisleadershipteamprovidedthemwitheveryjustificationtofurtherentrenchthemselvesintheself-focused,protective,andfrequentlycombativeposturetheyhadadopted.AndnoonewasmoresoentrenchedthanJack’sright-handmanandchiefofstaff,LarryHeitz.

UnbeknownsttoJack,atthetimeofourfirstmeetingwiththeteam,Larryhadalreadymadeplanstoleavethecompany.AfteryearsofdealingwithJack,hehaddecidedthatenoughwasenoughandthatJackwouldneverchange.The

onlysensiblechoicewastomoveon.SinceLarryhadlearnedthattheheadofsalesfeltthesameway,theyhadbegunquietlyrecruitingthecompany’sbestandbrightesttodefectandstartacompetitororganization.

ShakenbyLarry’sdeparture,Jackbegantoconsiderhowhemightbecomplicitintheproblemsthatplaguedhiscompany.Thescrutinyhehadonceappliedtohispeople,herefocusedonhimself.Hestartedtochange,bothathomeandatwork.

AsLarrybuilthisnewcompany,heheardabouttheeffortsJackwasmakingtochangethewayheengagedwithothersasaleader.ThiscausedLarrytoconsiderallthathehadlearnedfromJackwhileatTubular—lessonsthathadprovedvitalinthesuccessofLarry’snewcompany.Withapromisingprospectivebuyerforhiscompany,LarrybegantowonderwhatitmightbeliketorejoinJack.

OneyearafterLarryhadleft,hepickedupthephonetocallhim.“Jack,it’sLarry,”hesaid.“I’vebeenthinkingalotsinceIleft.You’veinvestedalotinmeovertheyears,andeverythingIknow,Ilearnedfromyou.I’veusedwhatyou’vetaughtmetobuildmyowncompany,andIthinkIcouldhelpyouturnTubulararound.Idon’tknowifyou’dbewillingtoletmereturn,butI’dreallyliketocomebackandworktogethertotrytosavethecompany.”

Remarkably,Jackagreed.Larryreturned,dedicatinghisfull-timeeffortsworkingwithasmallArbinger

teamtodevelopandimplementasystematicoutwardapproachacrosstheentireorganization.Asaresultofthiswork,onepersonanddepartmentatatimebegantoturnoutward.Thistookdiscipline.

Oneenduringfightinthecompanywasthedailybattlebetweenthesalesandcreditdepartments.Bothhadacompellingstorytoshare.(Andsharetheydid!)

Thecreditdepartment,chargedtokeepbaddebtbelow2.5percentofthecompany’srevenue,feltresponsibletoscrutinizeeachcreditapplicationanddenymostofthem.Thecreditteamhadlearnedtowatchthesalespeoplecarefully,knowingthatintheirpushtogetasaletheywouldtrytoslidecreditrisksbythem,goaroundthemtogetexceptionsfromtheexecutiveteam,orturntheapplicationinrightbeforethesalesdeadlinesothattherewouldn’tbeenoughtimetoresearchtheapplicant.

Ofcourse,theproblemseemedverydifferentfromtheperspectiveofthesalesteam.Justastheywerereadytocloseabigsale,thecreditpeoplewoulddenythecustomer’sapplicationonatechnicality—rulesorpoliciesthatseemedeverchangingandnevercommunicated.Withcompensationlargelytiedtocommissions,thesalesteamfeltunderminedateveryturn.

commissions,thesalesteamfeltunderminedateveryturn.“Don’ttheygetthatwedon’thaverevenueifwedon’thavesales?”the

exasperatedsalesteamwouldsay.“Butrevenueisn’trevenueifyoucan’tcollectit,”thecreditteamwould

respond.Likeanever-endingtug-of-war,theywerebothpullingonseparateendsof

thesamerope,abletoachievetheirdepartment’sobjectivesonlyiftheotherfailedtoachievetheirs.Eachsidehadjustificationtospare.Turningoutward,itseemed,wouldmeanlosingthefight.

Butforthefirsttimeinhiscareer,AlKlein,thelong-standingheadofthecreditdepartment,wonderedwhetherafightwasactuallyneeded.“Weneedtobedifferent,”hetoldhisteamatthebeginningofanall-day,closed-doormeeting.“I’vesetasidetheentiredaytodaytoworkonthis,andwe’renotgoingtoleaveuntilwefigureouthowwecanstillmeetthecompany’sobjectivesregardingbaddebtwhileenablingthesalesteamtobesuccessful.”

Seeingtheneeds,challenges,andobjectivesofthesalesteam,Alandthecreditteambegantothinkmorecarefullyabouttheirrole.“Thesalesteamissellingfortydifferentkindsofproducts,”oneofthemsaid.“Somearehigh-marginspecialtyproducts,andothersarelow-margin,high-volumecommodities.Surelyitwouldhelpnotonlythesalesteambutthecompanyasawholeifwefoundwaystoapprovecreditrisksforthosecustomerswhoaremakinghigh-marginspecialtypurchases.”Oncetheystartedthinkinginthisway,theydevisedacompletelynewobjective:maintainbaddebtat2.5percentofthecompany’srevenuesinawaythathelpsthesalesteamachievetheirobjectivesandthecompanyrealizeitsprofitabilitygoals.Theyalsodecidedthattheywouldcheckwithcompanyleadershiptoseeifarigid2.5percentapproachwasreallybestforthecompany.Theywantedtostayopentoabetterapproach.

Thisnewlyconceivedobjective,whichnowrequiredthecreditdepartmenttofindwaystobehelpfultothesalesdepartment,calledforthanewlevelofinitiativeandcreativityfromthecreditteam.Inlessthanaweekafterthecreditdepartmentmadethischange,thesalesteamwasoverheardtosay,“Ifanyonecanfigureouthowtoworkwithcustomerstohelpthemqualify,it’sourcreditteam.”

NoticethesimilarityinthewaysJack,Larry,andAlbeganturningoutwarddespitetheinwardprovocationsfromothers.Consideringtheirimpactonotherscreatedineachadesiretofindwaystobedifferenttoimprovetheresultsofthecompany.Whentheyfocusedonthisresult,itwasnolongerLarryversusJack

orcreditversussales.Instead,eachbegantothinkabouthowhemightbemakingitmoredifficultfortheotherpartytoachievetheobjectivesthattheorganizationrequiredofthem.Eachdidthisonhisownwithoutrequiringthesamefromtheotherparty.Freeofaninwardmindset,eachwasabletoseewaystoovercomethechallengeshehadpreviouslyfacedwithoutdemandingthattheotherreciprocate.ForJack,Larry,andAl,thiswasthemostimportantmove.

AsJackandLarrybeganfocusingontheneedsofthecompanyandAlandhiscreditdepartmentteamfocusedontheneedsofthesalesteam,otherpeopleacrossthecompanybegandevisingandimplementingwaysofworkingthatweredifferentandfarmoreeffectivethananythingtheyhadeverexperiencedbefore.Withintwoyears,Tubularwasproducingthebestreturnoninvestmentintheindustry.Larry,wholatersucceededJackaspresident,recalledtheprocessthisway:“Peoplefiguredoutwhattheyweresupposedtodo,notonlytomaketheirareasuccessfulbutalsotohelppeopleinotherareasbemoresuccessful.Overthecourseofafewyears,thatmadeatremendousdifferencetothecompanyandproducedadifferentkindofaculture.Asaresult,wegrewfrom$30milliontoover$100millionandmorethanquadrupledourprofitduringatimewhenthemarketforourproductshadgonefromabout10milliontonsdownto6milliontons.Eveninadecliningmarket,westillgrewbyafactoroffour.”

NoneoftheseresultswouldhavehappenedatTubularhadJack,Larry,andpeoplelikeAlwaitedonotherstochange.Ironically,onlywhentheygaveuptheirdemandthattheotherpartieschangeweretheyfinallyabletoseeandactinwaysthatinvitedthemtochange.

Acompanythatiscommittedtobuildinganoutward-mindsetculturewillprepareandhelppeopletobeabletomakeandmaintainashifttoanoutwardmindsetevenwhenothershaven’tyetmadetheshift.Thosewhopersistwithaninwardmindsetultimatelywon’tbeabletostaywithsuchanorganizationbecausetheirstayingwouldnotbehelpfultothem,theorganization,ortheircustomers.

Thechangetoanoutwardmindsetdoesn’thappenovernight.Andevenwheresuchchangeiswidespread,peoplewhousuallyoperatewithanoutwardmindsetwillsometimesslipbacktoaninwardmindset.Customerstoomaysometimeshaveaninwardmindset.Forallthesereasons—aswellasbecausewidespreadmindsetchangehappensinlargemeasureinresponsetothosewhochangefirst—beingabletooperatewithanoutwardmindsetwhenothersdonotisacriticallyimportantability.Itisthemostimportantmove.

Sometimespeopleareafraidtomakethismovebecausetheythinkthatothers

Sometimespeopleareafraidtomakethismovebecausetheythinkthatothersmaytakeadvantageofthemiftheydo.Butpeoplemisunderstandthemostimportantmovewearetalkingaboutiftheythinkthatworkingwithanoutwardmindsetwhenothersrefusetodothesamemakesapersonblindtorealityorsoftonbadbehavior.Itdoesneither.Infact,whatobscuresvisionandexposespeopletomoreriskisnotanoutwardmindset,whichstaysfullyalivetoandawareofothers,butaninwardone,whichturnsitsattentionawayfromotherswhilesimultaneouslyprovokingresistance.Peoplewhoworkindangerous,high-risksituationsknowthismostofall—peopleliketheNavySEALsandSWATteammemberswe’vereferencedbefore.Theyknowthattheirlivesandmissionsdependontheirabilitytoremainfullyawareofthecomplexitiesoftheirsituationsandtodosoinawaythatdoesn’tstirupescalatedresistance.Theoutwardmindsetdoesn’tmakethemsoft;itmakesthemsmart.

Arelatedreasonwhypeopleresistmakingthemostimportantmoveisthattheythinkanoutwardmindsetwillmakethemsoftwhenhardbehaviorisrequired.Butthisisamisunderstanding.Aswe’vesaid,anoutwardmindsetdoesn’tmakepeoplesoft;itjustmakesthemopen,curious,andaware.Similarly,aninwardmindsetdoesn’tmakepeoplehard.Infact,peoplewhosemindsetsareinwardoftenengageinbehaviorsthataresofterthanwouldactuallybehelpful.Wantingotherstothinkwellofthem(acommoninward-mindsetmotivation),peopleoftenindulge,pacify,orplacateotherswhendirectactionswouldbemorehelpful.Incontrast,parentsandleaderswhohavearesponsibilitytohelpothersimproveandgrowmayengageinharderbehaviorswhentheirmindsetsareoutward.Why?Becausesometimesthehelpapersonneedsisalongwayfromsoft.Fearthatanoutwardmindsetwouldmakeoneunhelpfullysoftspringsfromamisconceptionofthismindset.

Fairlyfrequently,weencounterleaderswhoareparalyzedwithadifferentkindoffear.Theythinkthatamindset-changeeffortmightbeagoodidea,buttheyworryabouthowtheirpeoplewillreact.Sotheseleadersdipatoeintomindset-changeeffortsandsitbacktoseehowtheirpeoplerespond.Theytellthemselvesthattheywillmakethedecisionaboutwhethertoproceedwiththeeffortbasedonthereactionoftheirpeople.

Inourexperience,ifpeopleseetheirleaderjustdippingatoein,theywillthink,rightly,thattheeffortprobablywon’tamounttomuch.Consequently,theleaderseesalukewarmresponseinhisorherpeopleandonthatbasisdecidesthatitprobablyisn’tworththeeffort.Butthatsameleaderisblindtothebiggestreasonfortheobservedreaction:thepeoplehaveatepidresponsebecausetheyseetheleader’stepidresponse.

Remember,theprincipletoapplyis,asfarasIamconcerned,theproblemisme.Iamtheplacetostart.Others’responseswilldependmostlyonwhattheyseeinme.

Themostimportantmoveisformetomakethemostimportantmove.

PARTIV

MultiplyingMindsetChange

11•StartwithMindset

OfficerMattTomasicoftheCentralPatrolDivisionoftheKansasCityPoliceDepartmentwasfinishinghisshiftontheKansasCityWestSidewhenhewitnessedamanassaultingawoman.“PoliceDepartment,”heshouted.“Takeyourhandsoffherandbackaway.”Matthelduphisbadge.“Doitnow!”Themantookhishandsoffthewoman,buthedidn’tbackaway.“Backaway.Now!”Mattshouted.ThemanturnedandstartedheadingtowardMatt.

Justthen,twocarscominguptheroadscreechedtoahalt.Thedoorsflewopenandanumberoflocalmenboltedfromthevehicles.Theymadeabeelineforthemanandsurroundedhim.Theirmotivation?TheywantedtoprotectOfficerTomasic.

Thestoryofwhythesemenandothersinthecommunitywerehelpingthepoliceisalessoninthehelpfulnessofstartinganychangeeffortwithmindsetchange.

Foroverfiftyyears,thecornerofSouthwestBoulevardandSummitStreetinKansasCityandthenearbyparkinglotofalocalliquorstorehadservedastheadhochiringsitefordaylaborersonthecity’sWestSide.ThissitewasinthedowntownHispanicarea,whichhadnumerousbusinessesthatcateredtothelocalHispanicpopulation.Foryearsthenumbersofmenlookingforworkweremanageable.Thoselookingforlaborersandthoselookingforlabormoreorlessfoundwhattheywantedthere.Butthenumbersofmencongregatinginthisareaskyrocketedoverafive-yearperiod,andthenumbersfarexceededthedemandforwork.

Thisswellinggroupgenerallyconsistedoftwokindsofmen:(1)documentedandundocumentedmenwillingtowork,and(2)documentedandundocumentedmennotinterestedinworking.Thoseinthissecondgroupincludedacriminalelementthatgatheredtopreyontheothers.Thosewhodidn’twantorcouldn’tfindworkloiteredaroundthearea.Withoutavailablefacilities,theyurinatedonsidewalksanddefecatedinalleyways.Somewouldstripnakedandshowerusingthehosesofhomeowners.Crimespikedinthearea,andbusinessesstartedtoleave.Thecommunitywasupinarms.

Inresponse,KCPDtriedtomanagethesituationthewaymostpeopledo—withbehavioralinterventions.Inthiscase,itemployedoverwhelmingforceandazero-tolerancepolicy.ChipHuth’sSWATteamwaspartofthiseffortbeforethetransformationofChipandhismenthatwedescribedinchapter1.Chip’steammembersandtheotherofficersdeployedinthiseffortconductedaggressiveneighborhoodsweepsandarrestedlargenumbersofmenforanyandeveryinfraction,fromdrinkinginpublictoalltheotherlawsonthebooks.Butthemenarrestedtypicallywerebackonthesamestreetcornerbeforethedaywasout.Itdidn’tmatterhowmanyresourcesthedepartmentputontheproblem.DespitethefiftyofficersdeployedtotheWestSide,thesituationkeptgettingworse.

Matthadbeenleadingthiszero-toleranceapproachoutofasmallcommunitycenternottoofarfromthecornerofSouthwestBoulevardandSummitStreet.Oneday,hewascalledintoseehisKCPDboss,whogavehimanultimatum:“WestSidesmellslikeapisser,Tomasic.Cleanitup.You’vegottwoweeks.”

Mattwasreadytogiveup.Ashereturnedtothecommunitycenter,hethoughtabouthowtogetmovedtoaneasierassignment,likeHomicide.Hewalkedintothecentertopreparehisciviliancolleague,LyndaCallon,forhisimminenttransfer.“I’veworkedmybuttoff,”hetoldher,“andthingsjustkeepgettingworse.”

Lyndalistenedandthensaid,“Matt,stopbeingapoliceofficerforaminuteandjustthinkaboutthesemen.Whatistheirlifelike?Whatdoyouthinkitwouldbeliketowonderwhenyou’llworknextortobewithoutbasicnecessities—withoutarestroomandnotknowingwhereyou’llgetyournextmeal?Whatwouldthatbelike?”

Noticewhatkindsofquestionsthesewere:questionsabouttheneedsandobjectivesofthementheyhadbeentryingtochange.LyndahadinvitedMatttobeginthinkingandseeingwithanoutwardmindset.Inresponse,Matt,forthefirsttimereally,begantoconsidertheissuesthesemenfaced.

ThecommunitycenterwhereMattandLyndaworkedhadarestroomandasmallstove.MattandLyndathoughtofsomethingsimpletheycoulddotohelpthemenwithsomeoftheirbasicneeds.Theyputthewordoutthatthemenwerewelcometocomeusetherestroominthecenter.Theyalsopooledtheirpersonalresourcestokeepapotofbeansonthestoveandpreparecoffee.ThiswasthebeginningofamyriadofchangesthatMattandLyndamadetowhattheyhadbeendoing.Oncetheysawthosetheyhadbeentryingtocorralaspeople,theybegantodiscoverwaystheycouldadjustwhattheyweredoingtobehelpful.

MattandLyndasoonstagedthehiringofdaylaborersoutofthecenter.Thosewhodidn’tfindworkforthedaywereinvitedoutintothecommunitytoprovideneighborhoodservices—fromclearingbrushtopaintinghousestohelpingneighborhoodmatriarchsmaketamales.Mattspenthistimewithhissleevesrolledup,engagingintheworkrightbesidethesemen.Theygottoknoweachother,andthemenandthecommunitystartedtotrustMatt,whichbeganchangingtheirviewsofthepolice.ThisworkingsidebysideprovidedawayforMatttoseeifhisapproachwiththemenwasreallyhelpingthem.Hestartedtomeasurehisimpactbasedontheproductivityofthemen,nothowmanyhetooktojail.Basedonwhathelearned,hemadefurtheradjustmentstobemorehelpfulinhisapproach.

Asthisinitiativegatheredmomentum,anotherofficer—Octavio“Chato”Villalobos—heardabouttheofficerwhohadputapotofbeansonthestoveforthepeopleontheWestSide,invitingthemintothecommunitycentertousetherestroom.HavinggrownupontheWestSideandknowingaboutthearea’schallengesfirsthand,ChatowasintriguedbywhatMattwasdoing.HeaskedtobeassignedtoworkwithMattintheneighborhoodwherehehadbeenraised.Onhisfirstday,Chatoshowedupinfulluniform,wearingsunglasses,withextraammunitionandhandcuffshangingoffhisbelt.Mattstronglysuggestedthat,todothekindofpolicingthatwasworkingontheWestSide,Chatogohomeandchangeintojeansandateeshirt.

Sincethattime,MattTomasicandChatoVillaloboshaveworkedtogetheroutoftheWestSideCommunityActionNetworkCenterinKansasCity.Therevitalizationofthecommunityhasbecomeanationalsuccessstory.Crimeintheareahasdroppedtoanall-timelow,andbusinessesaremovingbacktothearea.Thesetwoofficershaveaccomplishedwhataforceoffiftypoliceofficerscouldnot—allbecausetheyaddressedtheproblemwithanoutwardmindsetanddidsoinawaythatinvitedachangeinmindsetthroughoutthecommunity.

“Theseguyshadbeenaroundforfiftyyearsonthatcorner,”Chatoobservesnow,stillastonishedbythechangesthathaveoccurredontheWestSide.“Mattaddressedtheissuesjustbytreatingpeopleaspeople—youknow,unconditionalrespectandgettingtoknowwhotheywereandwhothebadguyswere.Itwasoverwhelming.”

Thepolicedepartment’sinitialresponsetothechallengeontheWestSidewastotrytocleantheproblemupwithanoverwhelmingbehavioralintervention.Thedepartmentwantedquickresultsanddeployedoverwhelmingforcetogetthem.Butitdidn’twork.TheWestSidechangedonlybecauseofMattandChato’sslowworkonmindset.

Wecallmindsetworkslowinthiscontextbecausetoooftenpeoplewhothinkonlyofdirectbehavioralsolutionstoproblemsdon’tunderstandtheneedforattentiontomindset.Theythereforethinkeffortstoshiftmindsetareawasteoftimeandwouldonlyslowthingsdown.AstheapproachonKansasCity’sWestSidedemonstrates,theycouldn’tbemoremistaken.

Asimilarstart-with-mindsetapproachwasthekeytoresolvingalong-standinglabor-managementdisputeinalargemultinationalcompany.Webeganourworkwiththisorganizationbyspendingtwodayswithtwentyleadersfromthemanagementsideoftheoperationandtenofthelaborleaders.Duringthesetwodays,wehelpedtheteammembersimprovetheirmindsettowardtheirworkandeachother.Thelasthouroftheseconddaywassetasidetoapplywhatwehadlearnedtogethertoanyparticularchallengetheywerefacing.

Theytoldusofadeadlockedlabor-managementdispute.(Weshouldhavebeenthoroughenoughinourinformationgatheringtoknowaboutthisconflictinadvance.)Thedisputewasabouttogotoarbitration.Despitethehigh-dollarstakes,laborandmanagementhadbeenunabletofindanagreeablewaytoaresolutionoverthepriormonths.Thegroupmemberssaidthattheywantedtoseewhattheycoulddotofindawaythroughtheirimpasseinthetimewehadremaining.

Forthefirsttimeduringourtwodaystogether,wesplitthegroupintolaborandmanagement.Wesuppliedeachsidewithaflipchartandthreequestionsthatwouldhelpeachgroupto(1)considertheneeds,objectives,andchallengesofthoseintheothergroup,(2)thinkaboutwhattheycouldadjusttobemorehelpfultotheothergroup,and(3)considerhowtheymightmeasuretheirimpact.Twentyminuteslaterwecamebacktogether.Weaskedonegrouptopresenttheirresponsestothefirstquestion.Thenweinvitedtheothergrouptopresenttheirresponsestothesamequestion.Wethenmovedtothesecondquestion,reversingtheorderofthegrouppresentations.

Beforewecouldgettothethirdquestion,thepresentationsevolvedintoanearnestandveryoutwarddiscussion,eachsideshowingrealinterestinandconcernfortheother’sneedsandissues.Beforeforty-fiveminutesofthehourhadpassed,theleadershadresolvedtheirconflict.Theyhaddonethisthemselves,withnoguidancefromusotherthantheworkwehaddonetopreparethemtoengagetogetherwithanoutwardmindsetandthesimplestructurewedevisedforthefinalexercise.Theyhadresolvedtheirdifferencesinawaythatstrengthenedtheirworkingrelationshipandtheirtrustineachother.

Nowit’struethatwespentthebetterpartoftwodayswiththemtohelpthem

gettothepointwheretheycoulddothis.Thatwasthetimeittookinthiscasetosufficientlyshiftmindsets.Butifyoustartwithchangingmindsets,behavioraltransformationscanhappenquickly.Twodaysspentworkingonchangingmindsetsenabledtheleaderstoaccomplishinforty-fiveminuteswhattheyhadbeenunabletosolveinsixmonths.

Whetherinrethinkingcommunitypolicingorresolvinglabor-managementdisputes,whenpeopleseesituationsthatneedtochange,thetemptationistoimmediatelyapplyabehavioralsolution.Thatseemslikethefastapproach.Butifmindsetisnotaddressed,itisusuallytheslowapproachtochange.

Weinviteyoutodoamindsetcheckbeforeyoubeginrollingoutbehavioralsolutions.Askyourselfthefollowingquestions:HaveI(orwe)thoughtthisthroughwithanoutwardmindset?DoIunderstandtheneeds,objectives,andchallengesofthoseinvolved?HaveIadjustedmyeffortsinlightofthoseissues?AndhaveIbeenholdingmyselfaccountableformyimpactonthesepeople?

Youwillmakeprogresstowardchangemuchmorequicklytothedegreeyoufirstattendtomindset.

12•MobilizearoundaCollectiveGoal

Thinkabouttheorganizationswehavediscussedinthisbookthathavesuccessfullybuiltoutward-mindsetcultures.ThinkaboutChipHuthandhisSWATteam;MarkBallifandPaulHubbardandthefiftyhealthcareorganizationsthattheyhaveturnedaround;LouiseFrancesconiandherexecutiveteam;GreggPopovichandtheSanAntonioSpurs;BillBartmannandCFS2;AlanMulallyandFord;JackHauck,LarryHeitz,andTubularSteel;andMattTomasic,LyndaCallon,andChatoVillalobosattheWestSideCommunityActionNetworkCenterinKansasCity.

Thespecificsofwhatthesepeopleandorganizationsdidastheybuilttheirculturesaredifferent.Butonefactorisconstant,andthisiswhatallowedallofthemtogetgoinginanoutward-mindsetwayratherthanbedoomedtoaninwardmindsetfromtheverybeginning.

Whatisthatconstant?Ineachcase,theleadersinvolvedtheirorganizationsinpursuingacollectiveresult—thatis,aresultthatatonceinvolvedeveryoneinsomethingmuchbiggerthanhimselforherselfandrequiredthateveryonejointogetherwithothersinorderfortheireffortstosucceed.

ChipHuthandhisSWATteamtogetherbeganreimaginingwhattheyowedtothemembersofthecommunity,whethersuspectsornot.Asanewcollectivevisionemerged,theteambeganmobilizingtogethertointerfacewiththecommunityinwaysthatwouldcreatetherelationshipbetweenpoliceandthecommunitythattheyhadimagined.Theybecamedeterminedtoshoweveryoneunconditionalrespect.Andthisrequiredthattheytreateachotherasmembersoftheteamwiththatsamerespect.

MarkBallifandPaulHubbardworkedwiththeiremployeestoidentifywhattheyweretryingtoachieve.Theybuilttheirculturebyenablingotherstoapplytheirfullcreativeenergiestoaccomplishthecollectiveresultofenrichingamillionliveseverytenyears,onepersonatatime.LikeChip’sSWATteamgoal,thisisaprojectthatrequireseveryone;itrequiresthemtoenrichthelivesoftheirclientsandthelivesofoneanother.

GreggPopovichandtheSanAntonioSpurs—well,theyareaboutchampionships.Buttheircollectiveresultinformshowtheypursuethose

championships.Buttheircollectiveresultinformshowtheypursuethosechampionships.Winningachampionshipisn’tyetthekindofobjectivethatsetsanorganizationuptoworkinanoutward-mindsetway,aschasingthatdreamcanbedoneininward-mindsetwaysaswell.ThecollectiveresultthatmotivatestheSpurshastodowithabeliefabouthowtheymustworktogethertowinchampionships.Theyarecommittedtoperfectlyegolessteamwork.Thatisaresultthatrequireseveryone,together.Theirresultstellthestory.

BillBartmannincludedhiswholecompanyinfiguringouthowtohelpthedebtorstheyviewastheirclients.Thebestideasforhowtodothiscamefromhisteammembersratherthanfromhim.Collectivelytheyfocusonraisingupthoseinsocietywhoarestrugglingwithdebt.Theentirecompanymobilizesaroundthisobjective.

AlanMulallyrevitalizedanalmost-brokencompanybyhelpingtheteamfocusonmakingthebestcarsintheworld,withprofitablegrowthforall.1Theirworkneededtobebeneficialtocustomers,suppliers,dealers,employees,andinvestors.Thatmeantthatallpeoplehadtostepupandworktogethertohelpeveryonebenefit.

JackHauck,LarryHeitz,andtheothersatTubularSteelmobilizedtothriveinarapidlydecliningmarketbyempoweringeveryoneintheorganizationtodeterminehoweachcouldpositivelyimpactprofitabilitynomatterhisorherrole.Thisprojectrequiredeverybody.

MattTomasicandhisteamengagedthedaylaborersontheWestSideinthecollectiveprojectofmakingtheWestSideasafeandcleanplacetolive.Thisfocuspromptedthemtotakeonprojectsinthecommunityandalsoaffectedhowthemenlookingforworkactedinandinterfacedwiththecommunity.

LouiseFrancesconisaidthisabouttheimportanceofacollectiveresultinmobilizinghercompany’seffortstobuildanoutward-mindsetculture:“Itisthefocusonsuccess—focusingonaresultinawaythatfocusesonothers—thatissoaccelerating.Culturemovesaroundthis.Idon’tcareifsomepeopleareloud;Idon’tcareifsomepeoplearequietorwhethertheyhavegoodhumor.We’renottryingtohaveahomogenizedgroupofpeoplewhoworkinthesameway.Everybodyworksindividually,buttheyworktowardacollectivesolution.It’sabouttakingdifferenceandfocusingtogetheronresults.”

Everyorganizationalreadyexistsasacollective.Thisistruewhetheroneisspeakingofanentireenterpriseorafrontlineteam.Whereverpeopleareorganizedtogether,acollectiveresultalreadyexists,justwaitingtobenamed,collaboratedaround,andworkedtoward.However,veryoften,peopleinorganizationsmostlyidentifyaroundtheirseparate,individualroles.Theydon’t

haveanunderstandingofhowtheirownrolesareessentialtotheoverallcollectiveresultoftheorganization.Sometimesthisisbecausetheorganizationisn’texplicitlyorganizedaroundsucharesult.Othertimesthisisbecauseleadershaven’tbeenclearenoughoraccountableenoughtohelptheirpeopleseetheirimpactonthatresultandtakeresponsibilityformakinghelpfuladjustments.

Clarifyingthecollectiveresultenablesindividualsandteamstoimprovetheircontributionswithintheorganizationwithoutwaitingfordirectivesfromthosewhohaveabroaderviewoftheorganization’sinterconnectedparts.Withthisunderstanding,peopledon’trequiresomeonetoaligntheirrolesrelativetoothers;theycandothisthemselves.Imagineanorganizationofself-aligningindividualsandteamswhotakeresponsibilityforimplementingtheoutward-mindsetpattern,constantlyadjustingwhattheydotoensurethattheirimpactcontributestotheaccomplishmentofthecollectiveresult.Everyindividualcandecidetobethiskindofcontributor.

Youmaybewonderingwhatyoucandoifyouhappentoworkinanorganizationthatisn’tbuiltaroundacollectiveresultandyouaren’tinapositiontodoanythingaboutthat.Eveninsuchacase,nothingiskeepingyoufromdefiningyourownroleintermsofacollectiveresult.Weinviteyoutousetheoutward-mindset-at-workdiagram(diagram15)asatemplatetohelpyoudothis.

Youaresituatedbeneathamanager.Whatisyourmanagertryingtoachieve?Theresultyourmanageristryingtoachieveisacollectiveresultforyou.Why?Becausedeliveringyourportionofyourmanager’sresultwillrequireyoutoworkcollectivelywithothers—withyourcustomers,peers,anddirectreports—todelivertheimpactthatyourmanagerneedsyoutodeliver.

Diagram15.TheOutwardMindsetatWork

Herearesomequestionsyoucanaskyourselfasyouutilizetheoutward-mindset-at-workframeworkforredefiningyourroleinthisway:

•Towardyourmanager.DoIhaveaclearunderstandingofmymanager’sobjectives?WhatcanIdotolearnaboutthem?WhatdoIneedtodotomakesurethatIamholdingmyselfaccountableformycontributiontomymanager’sresults?WhomdoIneedtoworkwithtoensurethatIhelpmymanagerachievethoseresults?

•Towardyourcustomers.Whoaremycustomers,andwhatobjectivesdotheyhavethatIcouldhelpthemwith?HowwillImeasurewhethertheyare,infact,helpedbymyefforts?

•Towardyourpeers.Whichofmypeersareaffectedbymywork?DoIknowwhetherIamhelpingorhinderingthemintheirabilitytoaccomplishtheirobjectives?

•Towardyourdirectreports.Aremydirectreportsgrowingintheirabilities?

HaveIworkedwiththemtosetacollectiveresultfortheentireteam,anddotheyunderstandhowtheycontributetothatresult?Dotheyunderstandhowtheirworkimpactstheabilityofotherstomaketheircontributionstothecollectiveresult?Andaretheyholdingthemselvesaccountableforthatimpactineachofthedirectionsoftheirwork?WhatcanIdotohelpthemtodothis?

Whereveryouarelocatedinyourorganization,youcanbegintorethinkyourworksothatyouseeyourselfinthecontextofachievingyourownessentialpartofacollectiveresult.

Ifyouarealeader,youcandothisforyourownroleandalsoworkwithyourteamordepartmenttocreatetheguidingframeworkthatacollectiveresultprovidesforthegroup.

Ifyouareanexecutive,youhavetheopportunitytoestablishthisvitalfoundationforoutward-mindsetworkingacrossyourentireorganization.Withoutaguidingresultthatrequiresallemployeestopulltogetheronbehalfofothers,outward-mindsetculturesaredifficulttosustain.Withsuchanoverarchingcollectiveresult,however,youcantakeaseriesofconcretestepstosuccessfullybuildanoutward-mindsetculture.Weexplorethreeoftheseinthenextthreechapters.

13•AllowPeopletoBeFullyResponsible

Withoutrealizingit,toomanyleadersassumethattheroleofleadershipistocontrol.TheyespousePlato’s“divisionoflabor,”which,accordingtosocialthinkerHannahArendt,hasinfluencedgovernmentandmilitarystructuresforthousandsofyears.1Withtheadventoftheindustrialrevolution,sheargues,corporateaction,liketheactionofmonarchiesandarmies,proceededintwophases:planningandexecution.Accordingly,inmostorganizationsyoufindaclass-dividedlot:themindsandthebodies,thebrainsandthebacks,theknowersandthedoers,themanipulatorsandthemanipulated.

Organizationsthatperpetuatethisleader/leddistinctiontendtoberiddledwithjustificationandblame.Thosewhoaretaskedwithdoingcanalwaysblamepoorperformanceonuninformedorunrealisticplans,whilethosewhodotheplanningcanalwaysblamefailuresonpoorexecution.Leaderswillcryforgreateraccountability,butthewaymostorganizationsaresetupbreedsaconstantlackofaccountability.

Withanoutwardmindset,leaderspositionpeopletobefullyresponsible.Thismeansthattheyempowertheirpeoplewiththeresponsibilitybothtoexecuteandtoplantheirwork.Consideranexampleofthisinahomeenvironment.

Foryears,JohnandSylviaHarrishadbattledwiththeirchildrenoverthefamilychores.Everyweekwasthesamestory.Thekidswouldn’tdotheirbasicchores,andtheparentsalternatedbetweenresentfullydoingtheworkforthemandlivinginanuntidyhome.Asforenforcement,theyvacillatedbetweencomingdownhardontheirchildrenanddisappointedlysayingnothing.Everythingtheytriedhadexactlyzeroeffect.

Thenonedaytheyrealizedthattheyhadbuilttheirfamilyapproachtochoresonthethinkers/doersdistinction.Whenchildrenarelittle,ofcourse,parentsneedtodomostofthethinkingandplanning.ButJohnandSylviarealizedthattheyhadn’tadjustedtheirapproachmuchastheirchildrenhadmatured.Thetwoofthemstillfiguredoutwhatneededtobedoneandthentoldtheirchildrenwhattheirpartswereinthegrandfamilyplan.Theparentswerethethinkersandthechildrenwerethedoers.

Withthisrealization,JohnandSylviaadjustedtheirapproach.Whatwoulditbelikeifwebroughtthechildrenintotheplanningprocess?theywondered.Sylviaworriedthatthechildrenmightfailtoseetheimportanceofsomeofthetasksthatshethoughtwereessential.But,hopingforthebest,sheandJohngatheredthekidstofigureouthowtheyallthoughtfamilyresponsibilitiesshouldbehandled—whatthoseresponsibilitiesshouldbe,whoshoulddothem,whentheyneededanddidn’tneedtobedone,andsoon.

Inthemidstofthisdiscussion,thechildrenwantedtothinkmorebroadly.“Whataboutfamilyfun?”oneofthemasked.“Allwehearis‘dothis’and‘dothat.’Canwetalkaboutthefunthingswecandoasafamilytoo?”

Andsothefamilytalkedtogetherandplannedtogetheranddisagreedtogetherandcompromisedtogether.Theylearnedabouteachother’sneeds—Mom’s,Dad’s,andeachofthechildren’s—whichputtheminafarbetterpositiontobeabletothinkaboutthekindsofactivitiesthatcouldandshouldbedone.Theyplannedtheirworkandtheyplannedtheirfun.Theyevenplannedtheconsequencesforfailingtodowhattheyhadmutuallydecided.Andpartoftheplanning,asurgedbythechildren,wasthatnoteverythingneededtobeplanned.Throughthisprocess,the“doers”becamethe“planners,”andthe“planners”joinedthe“doers.”Thischangefueledasignificantimprovementintheaccomplishmentoftasksathomeandtherelationshipswithinthefamily.

WhatwastrueintheHarrishouseholdistrueoforganizationsgenerally.Adistinguishingcharacteristicoforganizationsthatoperatewithanoutwardmindsetistheextenttowhichpeopleinthoseorganizationsareallowedandencouragedtoengagetheirwholebrainsintheplanningaswellasthedoingoftheirwork.Bywholebrains,wemeanalloftheirfaculties,includingtheirwillsandtheirhearts.Peopleoperatingwithanoutwardmindsetexercise,asitwere,theirwholeselves.

Now,youmightbethinking,ifthisworkedfortheHarrisfamily,goodforthem.Butthatwouldneverworkinmyfamily,ormycompanyforthatmatter.Mykidswouldtakeadvantageofmeiftheyhadanysayinwhatshouldhappenathome,andthepeopleatworkrarelyengagetheirbrainsindoingtheirwork,letaloneplanningit.Perhapsyou’vetriedenlistingothersinsuchaprocessandtheysimplydidn’tengage.

ThisisthesituationthatDanFunkencounteredasthenewleaderofaseriouslydysfunctionalhealthcarefacilityhiscompanyhadrecentlyacquired.TheemployeesofthisfacilitywereaccustomedtofulfillingthemandatesofthepriormanagementteamandseemedunresponsivetoDan’sinitialinvitationstobreakfreefromtheirmindless,entrenchedwaysofworking.Sohecalleda

breakfreefromtheirmindless,entrenchedwaysofworking.Sohecalledameetingwiththeleadershipteamtoattemptareset.

“Okay,”Danbegan,“let’sjustbrainstormtogether.Imaginethattherewerenobudgetconstraintshereandnolimitations.Whathaveyoualwayswantedtodoforthepatientshere?Whatspecialserviceshaveyouwishedyoucouldprovide?Whatimprovementshaveyouwantedtomake?Thesky’sthelimit.Don’tholdback.Justthrowyourideasoutthere.”

ToDan’ssurprise,noonesaidanything.Helookedaroundateachmemberofthegroup,tryingtocoaxoutanyresponses.

Nothing.Danwasperplexed.Howcannoonehaveanyideas?Butthenitdawnedon

himthatthecontrolling,inwardlyfocusednatureofthepreviousmanagementhadinvitedaninwardfocusineveryoneinthatfacility.Rarelyallowedthefreedomtomeettheneedsthatexistedallaroundthem,employeessimplystoppedseeingthoseneeds.Seldomallowedtousetheirbrains,theyhadstoppedusingthemonbehalfoftheorganizationanditscustomers,thepatients.Itwasasiftheabilitytoseeandrespondtotheneedsandobjectivesofotherswasamusclethat,deniedexercise,hadatrophiedanddied.

SoDantriedadifferenttack.Hebeganbuildingrelationshipsbyworkingside-by-sidewithemployeesateverylevelinthefacility,solicitingtheirideasabouthowtoimprovethisorthatprocessasheengagedintheworkwiththem.Hecarefullylookedforopportunitiestohelppeopleseepossibilitiesforthemselves.“Whatdoyouseethatcouldbeimproved?”heaskedasheworked.“Whatneedsdoyourpatientshave?Whatmightyoudothatwoulddelightthem?”

Inthisprocess,Danactivelyhadtoresistthetemptationtoimposehisownideas.“Ilearnedthatwhenpeoplecameupwithanidea,itwasimportanttoallowthatideatogrowandbeimplemented.Aslongasanideadidn’ttakeusbackwardorcauseharm,theorganizationbenefitedmorewhentheteammemberswereallowedtoimplementtheirideaanddiscoverhowitcouldbeimprovedthanwhenIjusttriedtogetthemtoimplementmyidea.IwasconstantlysurprisedbyhowmanytimesIdiscoveredthatothers’ideasturnedouttobemuchbetterthanmineandbytheincreasedenergypeoplebroughttotheirworkwhentheywereempoweredtoimplementtheirownideas.”

Thejoytheseteammembersexperiencedwhentheysawtheimpacttheycouldhaveontheircoworkersandpatientsbecamecontagious.Soonpeoplethroughoutthefacilitywerefindingwaystheycouldadjusttheireffortstobecomemorehelpfulandhavegreaterimpact.

Nevertheless,someemployeesweresonumbtotheneedsaroundthemthatitappearedtheywouldneverbeabletofullyengageinhelpfulandproductiveways.Danrecallsdecidingearlyonthatoneemployeeinparticular,adirectorofpatientadmissions,wouldsimplynotmakeitandwouldneedtobefired.Danremembershissurprisewhenshehesitantlyapproachedhimonedayandsharedwithhimthatshehadwantedtoexpandherresponsibilitiesbutwasnevergiventheopportunity.Inadditiontocoordinatingadmissions,sheaskedifshecouldgotoatinyhospitalclosetoherhometotrytobuildrelationshipsthere.Thehospitalhadneversentapatienttothefacility,sowithnothingtolose,Dandecidedthatthiswouldbeanopportunitytoseewhatshewascapableof.

“Amonthlater,”Danrecalls,“Iwasabsolutelydumbfoundedbythenumberofpatientsthatbeganfloodingintothefacilityasaresultofherefforts.”Danhasdifficultyhidinghisemotionsasherelatesthisexperience.“ShesawapotentialinherselfthatIhadrefusedtosee.Herlifechangedinprofoundwaysbecauseofthisexperience.Butmylifechangedtoo.IresolvedthatIwouldnevermakeassumptionsaboutothers’abilitiesbeforetheyaregivenappropriateopportunities.ItsickensmetothinkabouthowmanyothersIhaveleftinmywakewhocouldhavebeengreatbutwerenevergiventhechance.

“I’verealized,”Danconcluded,“thatwhenItrytoimposemyideasonothersandtherebyrefusetoallowthemtothink,IendupgettinginthewaymorethanIendupbeinghelpful.It’snotmyjobasaleadertohavethesolutiontoeveryproblem.Tothosewhobringyouaproblemtheyarefacing,youhavetobeabletosay,‘Hmm,thatsoundslikequitetheconundrum.Ilookforwardtohearingyourbestthinkingabouthowweshouldfixthat.’Attheendoftheday,myleadershipeffectivenessismeasurednotbywhatIamabletoaccomplish,butbywhatthosewhomIleadareabletoaccomplish.”

RobAnderson,CEOofSuperiorWaterandAir,alargeheatingandairbusiness,gatheredhisleadershipteamtobeginapplyingthewhole-brainorwhole-selfapproachofanoutwardmindsetintheircompany.Aspartofthiseffort,theyreconsideredtheirworkwiththecompany’scustomerservicereps(CSRs).“IfwestartedbythinkingabouttheCSRs’needsandchallengesandobjectives,”Robasked,“whatmightoccurtous?”

“Well,tobeginwith,”oneofhisexecutivesanswered,“we’dstartlearningtheirnames.”Theothersintheroomnoddedandspontaneouslystartedtryingtonameasmanyofthecustomerservicerepsastheycould.

“Andwe’dwanttolearnmoreaboutwhatit’sliketodotheirjobs,”anotherremarked.“Weshouldprobablyjointhemandtrytodowhatwe’veaskedthemtodo—toseehowwe’dlikeit.”

todo—toseehowwe’dlikeit.”“Itriedthatonemorning,”oneofthemsaid.“Icouldn’tgetoutoftherefast

enough.Icouldneverdothatjob!”“Andyettheymakefarlessmoneythanwedo,”anotherchimedin.This

commentgoteveryonethinking.“SowhatwoulditbeliketobeaCSR?”Robasked.Thegroupdiscussedthe

realitiesoftheCSRs’job—fromtheirless-than-idealworksettingtothepressuresofdealingwithcustomercomplaintstothedemandsmadeonthembyvariousdepartmentsinthecompany.

“Youknow,”oneoftheexecutivessaid,“we’vereallysetthingsupbackward.Wejusttoldthemwhattheyneedtodoandtheresultstheyneedtodeliver.Nowonderthejobisadrag.”

Atthispoint,oneoftheexecutivesleveledacritiquetowardthiswholelineofthinking.“Sowhatarewesupposedtodothen,”heasked,“justletthemdowhattheywanttodo?Weneedthemtoaccomplishthegoalswe’vesetforthem.Ourresultsdependonit.”

Thisobjectionsoundscompelling.Butitrestsontheassumptionthatotherscan’tbetrustedtoaccomplishanythingunlesstheyaretoldwhattheyneedtoaccomplishandhowtheyneedtoaccomplishit.Thisisthesamethinker/doerdistinctionthattheHarrisfamilyhadtoabandonbeforetheycouldmakerealimprovementsintheirfamilyandthatcouldhavesquashedthepotentialofDanFunk’sadmissionsdirector.

Peopleshouldbeinvolvedindeterminingtheresultstheyneedtodeliverinthecontextofacollectiveresult.Everyonehasabrain,andeveryoneinanorganizationshouldbeencouragedtoengageandusethatbraintothinkaboutandexecutehisorherrole.AfterrethinkingtheirapproachtowardtheCSRsbyutilizingtheoutward-mindsetpattern,RobandhiscolleagueshadtoresistthetemptationtorethinktheCSRs’roleforthem.Tobeeffectiveintheirleadership,Robandhisteamneededtohelpthecustomerservicerepsengageinthesameprocessthemselves—totakeresponsibilityforrethinkingtheirrolesbyusingtheoutward-mindsetpatternfromchapter8,whichisreproducedindiagram16.

Diagram16.TheOutward-MindsetPatternforanIndividual

Applyingtheoutwardmindsetpattern,theCSRsshouldlearnabouttheobjectivesofthosetheyimpact,includingtheexecutiveteam.Theywouldthenbeabletousetheirowncreativityandinitiativetodeterminewhatadjustmentstheyshouldmaketobecomemorehelpfulintheirrole.Theywouldthenmeasuretheimpactoftheireffortsineachdirectionandontheorganizationasawhole.

Oneofthereasonstheoutward-mindsetapproachcanbescaledsoreadilybypeopleup,down,andacrossanorganizationisthatoutward-mindsetworkattheindividuallevelmirrorsthesameworkforateamandanentireorganizationorenterprise.Diagram17showsthesameframeworkwithenterprise-levelcategoriesineachofthefourdirectionsofthediagram.

Diagram17.TheOutward-MindsetPatternforanOrganization

Comparediagrams16and17.Individualworkersandtheenterpriseasawholebothhavecustomers.Bothhavethosetheyreportto—amanagerinthecaseofanindividual,andaboard,shareholders,orothersfortheenterprise.Bothhavepeersorpartners(attheenterpriselevel,partnersmightincludesuppliers).Andallmanagersinanorganizationhavethosewhoreporttothem,justasanenterprisehasresponsibilityfortheworkforceasawhole.

Becausetheoutward-mindsetapproachisidenticalwhetherworkingattheindividual,team,orenterpriselevel,anorganization’sleaderscanrethinktheorganization’sworkattheenterpriselevelinexactlythesamewaythatalltheemployeesintheorganizationwillberethinkingandaligningtheirworkintheirindividualroles.

Awaytomakethisscaledalignmentexplicitistohelpeachperson,eachteam,eachdepartmentordivision,andtheenterpriseasawholeconstructtheirownoutward-mindset-at-workdiagrams.Imagineanorganizationcomposedofindividualsandteamswithcompleteclarityandtransparencyaboutwhomtheyhaveresponsibilitiestoward.Imaginethattheyarecommittedtodoingwhatthey

haveresponsibilitiestoward.Imaginethattheyarecommittedtodoingwhattheydoinwaysthathelpthosetheyhaveresponsibilitiestowardsucceedintheirefforts.Imaginethatallthepartsoftheorganizationaresuppliedwiththeunderstandingandtoolstooperateinanoutwardlyfocusedway.Andimaginethattheenterpriseitself—frommissionandstrategytostructureandsystems—wasrethoughtinthiswaysothattheentireorganizationwasmobilizedformaximalimpact.

Imagineaswellthatyoucouldlookovertheexpanseoftheorganizationandseewheretheeffortsofindividualsandteamswerefocusedinwardsothatyoucoulddeterminewheretobeginputtingmoreofyourtimeandattention.Andimaginethatyoucouldhelpallpeopleintheorganizationbecomeself-managingandself-accountableineachdirectionoftheirwork,continuouslyandenergeticallyadjustingtheireffortstobemorehelpful.Whatwouldhappentotheproductivityofyourorganizationifyoucouldinviteanoutwardmindsettothatdegree?

14•ShrinkDistinctions

Oneofthewaystheleader/leddistinctionwediscussedinchapter13showsupisthroughwhatwecalltrappingsofdifference—thatis,outwardmanifestationsofstatusthatonlythepreferredcanenjoy.Whenourmindsetsareinward,weseenoproblemwithsuchdistinctions;theylikelyseemwelldeserved.Incontrast,whenourmindsetsareoutward,weseethatothersmatterlikeweourselvesmatter.WepossessthecharacteristicthatMarkBallifandPaulHubbard,whomwediscussedinchapter1,identifiedfromtheirexperiencetobethemostimportantleadershipessential:humility.Weunderstandthatanypracticeorpolicythatcommunicatestoothersthattheydon’treallymatterlikewedocanendupcreatingbarrierstobuildinganoutwardorganization.

OnaclientengagementinLondon,twoofourArbingerconsultantssteppedintotheelevatorontheirfirstvisittoaclient’sheadquartersandpushedthebuttonforthebuilding’stopfloor.Amanintheliftsaid,“Ah,topfloor.”Ahintofresentmentinhisvoiceclearlycommunicatedwhathedidn’tsay:Soyouthinkyou’rebigshots,huh?Theman’scommentsuggestedthatonestickingpointatthiscompanymightbethewaycompanyleadershiphadchosentosegregatethemselvesfromothersinthecompany.

Insomecases,theremaybegoodbusinessreasonswhytheexecutivesneedtohaveofficestogetherandapartfromothersinthecompany.Buteveninsuchcases,itstillleavesopenthequestionofwhytheywouldneedtobetogetheronthebestfloorofthebuilding.Whynotamiddlefloor?Orwhynotthebasementlevel?Leaderswhoquestionthetrappingsofprivilegethattheyenjoy,and,wherestrongbusinessreasonsformaintainingthedifferencesdon’texist,arewillingtocollapsethedistinctionsbetweenthemselvesandothersinthecompany,createanenvironmentwheremindsetchangeissignificantlymorelikelytosucceed.

Thesameistrueineveryenvironment.Amotherwhoappliesonesetofrulestoherselfandanothersettoherchildren,forexample,undercutsherabilitytoinfluencepositivemindsetchangeinherchildren.Why?Becausethemorelenientsetofrulesfortheparentcommunicatesthatthemotherthinkssheismoreimportantthanherchildren,whichinvitesresistanceandevenresentmenttowardherandherrules.Parentswillhavemoresuccesswiththeirchildrenif

towardherandherrules.Parentswillhavemoresuccesswiththeirchildreniftheylivebythesamesetofrulesastheirchildren.

Ofcourse,therearedifferencesbetweenparentsandchildren—betweentheirresponsibilities,andsoon—sotherewillalwaysbedifferencesinsomeoftheiractivities.Thesamecanbesaidaboutworkplaces.TheCEOhasadifferentsetofresponsibilitiesthanthenewlyhiredcollegegraduate,sonoonewouldexpectthateverythingintheworkplacewouldbethesameforthetwoofthem.However,CEOsandotherleaderswhominimizetheprivilegestheyenjoycomparedtotheirpeopleinspirefargreaterlevelsofdevotionthanthosewholovetheirprivileges.

ThiswasoneofthemajorreasonswhyAlanMulally,whomwediscussedinchapter8,wasabletoleadsuchpositivechange,firstatBoeingandthenatFord.Mulallywasbelovedbyworkersatalllevelsinpartbecausehecollapsedthetrappingsofleadership.Hedidn’tpresenthimselfasabigshot.InsteadofeatinglunchinFord’sopulentexecutivediningroom,forexample,heatelunchinthecompanycafeteria,takingaplastictrayjustlikethenextpersonandworkinghiswaydowntheline.Hewasasinterestedinlisteningtoandlearningfromthemanontheassemblylineashewasthepersonnexttohimattheexecutiveteammeeting.Hefeltnoneedordesiretoseparatehimselffromhiscoworkerssimplybecausetheorganizationchartsaidhewasatthetop.

Agoodruleofthumbisthatanorganizationisreadytodeploymindset-changeeffortstothenextlevelinanorganizationwhenthoseinthenextlevelareseeingrealchangeinthelevelabove.Leadersdemonstratenoticeablechangeastheybeginquestioningtheprivilegestheyreserveforthemselves.Topromptsuchhelpfulchanges,leaderscouldbeginaskingthemselvesquestionslikethese:Doweneedtheprimeparkingspots?Thebestofficespaces?Dowesegregateourselvesindifferentcafeteriasormorepreferredpartsofthebuilding?Canperksthatthefewenjoybemadeavailabletoothers?Cananytrappingsof“big-shotness”beremoved?Ifwetreatandpayourselvesgenerously,areweappropriatelygenerousaswellwithouremployees?Andsoon.

Aswelearnedinchapters8and9,themethodologyforturningfromaninwardmindsettoanoutwardmindsetistoapplytheoutward-mindsetpattern.Thispatterncanguideyouasyouquestionthetraditionsandpracticesinyourorganization.Youcouldbeginbyallowingyourselftobeguidedbyquestionsthatpromptacarefulconsiderationoftheexperienceofothersthroughouttheorganization:Whatisitliketobeanemployeehere?Doemployeesfeelvalued?Dotheyfeelunderstood?Dotheyfeelthattheleadershipappreciatesthem?

Whatdistinctionsintheworkplacemightbetroublingtothem?Whatdistinctionsmightmakethemfeellessimportant?

Thenaskquestionsthatmightsparkideasaboutwhatadjustmentsmightbehelpful:Whatcanwedotohelpothersunderstandhowwevalueandappreciatethem?Whatcanwedotomorefullyunderstandothers’viewpointsandconcerns?Whattrappingsofleadershipcurrentlyexistintheorganization?Whichofthesetrappingsanddifferencesmakegoodbusinesssenseandwhichdonot?Whatcanwedotocollapsedistinctionsbetweenleadershipandothersintheorganization?

Lastly,considerhowyouwillmeasuretheimpactofthesechangesandcontinuouslyreassessthedistinctionsthatarise:Whatcanwedotostaymorefullyconnectedtoemployees?Whatcanwedotoensurethatwecollectandstayopentofeedbackandsuggestionsfrompeopleatalllevelsoftheorganization?Howcanwecontinuouslycheckourselvesasleaderstomakesurethatwearenotlettingunnecessarydistinctionsseparateusfromothers?

Anumberofyearsago,ScottO’Neil,wholedthesportsdivisionofMadisonSquareGarden(MSG)atthetime,askedustoworkwithhisleaders.OneofourcolleaguesmetwithScottandhisleadershipteaminNewYork.Acoupleofhoursintothesession,theteamconsideredaquestionaboutdifferencesthatsparkedadeeplyimportantsetofdiscoveries:Whichpeopleorgroupsofpeopleinthisorganizationprobablymostfeelasiftheyareseenasobjects?

Astheteamlistedthecandidategroups,theyweretroubledbytherealizationthatthepeopleatMSGwhoprobablymostfeelasiftheyareseenasobjectsarethepeopleintheorganizationwhomosttouchtheircustomers:thetickettakersandtheushersatMadisonSquareGarden.Theteamthoughtthosegroupsprobablyfeltignored,underappreciated,andtakenforgranted.Andthissuddenlyworriedthem.Ifthoseintheorganizationwhointeractwiththecustomersarethemselvesseenandtreatedasobjects,howaretheylikelytoseeandtreatthecustomers?Theleadersbeganthinkingaboutwhattheycoulddotocollapsedistinctionsinthewaystheirfrontlinepeopleweretreatedascomparedtoothersintheorganization.

MSGleadershipbegantomakeconcertedeffortstolearnthenamesandbackgroundsofthepart-timegame-dayemployees.Theyfiguredthatthesepeoplewereasvaluabletotheorganizationastheseason-ticketholdersandsponsorsandthattheattitudesandactionsoftheleadershipandfull-timestaffshouldcommunicatethat.Theydidn’tthinkthatanyoneshouldfeelthatheorshewasabovedoingwhatthepart-timestaffwasbeingaskedtodo.“Ifyouseeapieceofpaperontheground,pickitup”becamearunningmantraforMSG

apieceofpaperontheground,pickitup”becamearunningmantraforMSGleadershipandfull-timeemployees.Itwasonewaytocollapsedistinctions.Asaresultoftheseandotherinitiatives,awe-are-in-this-togethermentalityspreadthroughouttheorganization.

Ahealthcareclientthatoperatesmanyhospitalsdiscoveredthissameissuewithinitsorganization.Thepeopleinitsemergencyroomswhomostfeelasiftheyareseenasobjectsarethosewhofirstmeetwiththepatientsandwhoshapethepatients’initialexperience.Thesearethepeopleatthedeskwhocheckpatientsin,takecareofalltheinsuranceissues,andsoon.Revealingly,thiscategoryofworkersisknowninthemedicalindustryasancillarystaff.Thinkaboutthistermandwhatitcommunicates:ancillary.

Whenthedoctors,nurses,andtechniciansconsideredwhattheseemployeeslikelyassumedabouttheirrolegiventheirtitle,theyintuitedthesametruththatthoseatMadisonSquareGardendid:thepatientexperienceintheirhospitalscouldbenobetterthantheexperienceofthosetheythoughtofasancillarystaff.LiketheleadersatMadisonSquareGarden,theseleadersbegantorethinkthedifferencesintheirworkplaces.

RichardSheridanandhiscolleaguesatthebrilliantsoftwaredesignfirmMenloInnovationsarefantasticatmanythings,includingcollapsingdistinctions.AlltheemployeesatMenlo,includingRich,worktogetherinasingle-spaceenvironment.Everyone’sdeskisthesame.Thecompanyholdssmall-groupandlarge-groupmeetingsinthissameenvironment,whereeveryonecanlistenin,learn,andparticipate.

“Somemaywonder,”Richsays,“where,inawide-open,no-rulesspace,theCEOsits.Mostcompaniesmarkthestatusoftheirhigh-levelmanagersbygiftingthemsuites.ButourC-suiteisn’tacorneroffice;it’satableoutinthemiddleofthespace,withanoldwhiteAppleiMac,notablebecauseitmaybetheslowestcomputerintheentirecompany.That’swhereI,astheCEO,sit.”Headds,“Isitoutinthemiddleoftheroombecausethat’swheretheteamhasputme.SometimestheteamdecidesIneedtobeclosertotheaction,whereIcanoverhearmoreofthedetailsofaparticularlychallengingproject.Whenthatisthecase,theymovemytablerightintothemixofthatproject’spodoftablesandpeople.EveryfewmonthsIhavetoadjustmywalkingpatterntoanewdesklocation.”1

Richandhisteamhaveevencollapsedthetrappingsofthecompanyasawhole.IfyouwanttovisitMenlo,youparkinagaragebetweenWashingtonandLibertyStreetsinAnnArbor,Michigan,andtaketheelevatortothebasement.There,inawindowlesscavethatwasonceafoodcourtandmallinthebasement

ofaseven-storyparkingstructure,youwillfindthiswildlysuccessfulno-big-shots-allowedcompany.

Whenleadersbegintotakeseriouslytheprojectofnottakingthemselvestooseriouslyandbegincollapsingthedistinctionsbetweenthemselvesandothers,theyarepositionedtobeginscalingmindsetchange.

15•TurnSystemsOutward

Animportantaspectofleadingsuccessfulmindsetchangeisawillingnesstoreconsidertheobjectives,systems,policies,andprocessesofanorganization.Systemsandprocessesthataredesignedtomanageobjectsratherthanempowerpeoplehavewidespreadnegativeconsequences.Effortstorethinkthosesystemsandprocessesfromanoutward-mindsetperspectivecandeliverhugebenefits.

RecallthestoryoftheHarrisfamilyinchapter13.Thefundamentalchangeintheirplanningprocessresultedinasignificantimprovementinthehelpingathomeandintherelationshipswithinthefamily.Thisdidn’tsolvealltheirproblems,evenaroundchores,butitestablishedanentirelydifferentfoundationuponwhichtohandlefailuresaswellassuccesses.TheHarrises’newapproachturnedtheirfamilyplanningintoanoutward-mindsetprocess,whichinspired,reinforced,andsupportedoutward-mindsetworking.

Diagrams18and19onthefollowingpagesrepresenttwoorganizationswiththesamegeneralcategoriesofsystemsandprocessesthatallorganizationshave—reportingpractices,salesprocesses,performanceevaluationsystems,andsoon.

Thesystemsandprocessesintheorganizationdepictedindiagram18arerepresentedwithinward-facingtrianglesbecausetheyaredesignedandimplementedbythosewhoseeemployeesasobjects.Asonewouldexpect,inward-mindsetsystemsandprocesseswillinviteandreinforceaninwardmindsetthroughouttheorganization.

Diagram18.Inward-MindsetSystemsandProcesses

Thesystemsandprocessesintheorganizationdepictedindiagram19,ontheotherhand,aredevelopedandexecutedbythosewhoseepeopleintheorganizationaspeople.Aswe’vediscussedintheprevioustwochapters,seeingemployeesaspeoplemeansrecognizingthattheyhavebrains.Theycanplan.Theycanresponsiblyexecute.Theycaninnovate.Theyhavetheabilityanddesiretobehelpfulandaccountabletooneanother.Theywanttoachieveandbuildsomethingexcitingtogether.Forthesereasons,thesystemsandprocessesinanoutwardlyfocusedorganizationarerepresentedwithoutward-facingtriangles.Becausetheyaredesignedtohelppeople,theyinvite,reinforce,andhelpsustainanoutward-mindsetculturethroughouttheorganization.

Diagram19.Outward-MindsetSystemsandProcesses

Ifanorganizationtellsitspeopletooperatewithanoutwardmindsetbutpersistsinimplementingsystemsandprocessesthataredesignedto“manage”objects,thesystemsandprocesseswillendupwinning,andtheorganizationanditscustomers,employees,andstakeholderswillenduplosing.

Consider,forexample,theeffectofaforced-distributionorbell-curverankingsystem,whereemployeesarecomparedtoeachothertodeterminetheirfutures.AnewmanagerinaninternationallydispersedsecurityteamwithinaPCtechgiantbegantoseerealprogressinhelpinghisteammembersdevelopanoutwardmindsetdespitethegeographicaldistanceandabsenceofsignificantface-to-faceinteraction.Teammembershadbeguntoadjusttheirworktotakeintoaccounttheneedsoftheircoworkersinanefforttodelivertheirservicestointernalcustomerdepartmentsaroundtheworld.

Astheendoftheyearapproached,however,thisleaderbegantonoticeteammembersrevertingbacktotheiroldinward-mindsetbehaviors.Theystartedhoardinginformationandstoppedcollaborating.Theybeganpushingtheirowntask-orientedagendas,regardlessofthedifficultiestheycreatedfortheir

task-orientedagendas,regardlessofthedifficultiestheycreatedfortheircoworkers.

Inhisfrustration,theleaderpickedupthephoneandcalledteammembersfromJapantoJohannesburgtoaskwhyattitudeswereslidingbackward.Someemployeesweredefensive,excusingtheirinward-mindsetbehaviorsbyblamingtheircolleagues.Otherswereevasive,denyingthatanychangehadoccurred.Finally,oneofhisteammemberstoldhimthetruth.“Don’tyouknow?”thisemployeeasked.“It’stheendoftheyearandtimeforperformancereviews.Weallknowhowthisworks.Youhavetoratethemembersoftheteam,andveryfewofuswillmakeitintothetop15percentandgetabonus.Andthebottom10percentwillbegettingsacked.Howdidyouthinkwewouldbehavegivenwhat’scoming?”

Despitethealmostirresistibletemptationtowardaninwardmindsetthatsuchasysteminvites,somecompaniesthatseetheirpeopleasobjectshavedifficultyseeingviablealternativestosuchasystem.Abellcurveforcesperformanceratingsbasedontherelativeperformanceofteammembersagainsteachother.Itdoesnotratetheactualproductivityandresultsofteammembers.Atruereviewofperformancebasedonresultsrelativetoopportunityforimpactmightsuggestthatfarmorethan10percentofemployeesneedtogoor,ontheotherhand,thateverysinglememberofateamshouldstay.Butthiswouldrequirethatorganizations,insteadofmanagingthroughmandates,entrusttheirleadersandmanagerswithactuallyleadingandgrowingtheirpeople.

Wearesympathetictowhyorganizations,particularlyverylargeones,sometimesfeelcompelledtoadoptaforced-distributionapproach.Whenmanagersareaskedtoratetheiremployees,theyoftenfeelpressuretoinflatetheirratings.Sometimesmanagersdothisbecause,fromaninwardmindset,theyhaveaneedfortheirpeopletolikethem.Othertimestheymaynothavetakentheirleadershipresponsibilitiesseriouslyenoughtoknowwheretheirpeopleneedtoimprove.Whateverthereasonsmaybefortheratinginflation,organizationshavemandatedforced-distributionapproachestoforcemanagerstorankordertheirpeople.Thiscomesatahugeorganizationalcost,aswehavediscussed,butitisunderstandablewhyorganizationsneverthelesshavemadethatchoice.

Ifyoufindyourselfworkingwithinsuchaforced-distributionsystem,withnoauthoritytochangeit,doesthatmeanthatyouarestuck?Considerhowyoustillcouldoperatewithinthatsystemwithanoutwardmindsetandhelpyourpeopletodothesame.Forexample,whatifyougatheredyourteamandtaughtthemabouttheoutward-mindset-at-workframeworkandtheoutward-mindsetpattern?

Youcouldencouragethemtoholdthemselvesaccountablefortheirimpactineachofthefourdirectionsoftheirwork,andyoucouldletthemknowthattheirannualperformanceratingwillreflecttheireffortstoholdthemselvesaccountableinthisway.Youcouldthenmeetwiththemonaregularbasistoseehowtheyaredoing.Meetingregularlywiththem,youwouldbepositionedtohelpthemimprovetheirworkandincreasetheirlevelofself-accountability.

Youreffortswithyourpeoplewouldn’tbeabletorescuethewholesystemfromtheperverseeffectsoftheforced-distributionapproach.However,youwillhavebeenabletohelpyourpeople,withinthatsystem,togrowinproductiveways.Nosystemcankeepyoufromdoingthat,unlessyouallowitto.

Thatbeingsaid,ifyourorganizationtellsyoutohaveanoutwardmindsetbutrewardsandpaysyouforbeinginward,theperverseincentivescanseemoverwhelming.Someofthemostcommonstructuralimpedimentstooutward-mindsetworkingareinwardlyfocusedsuccessmetrics.

Asacaseinpoint,considerthestoryofTomBrakins—affectionatelycalledBrakbythoseclosetohim.Brakisatopsalesleaderinoneofthemostpowerfulcompaniesintheworld,acompanywewillcallLandaCorporation.Hewascommissionedbyhiscompanytotrytorescueoneofitsmostimportantbusinessaccounts.BythetimeBraktookovertheaccount,Landahadfallentonumbersixteen(andlast)ontheclient’spreferred-supplierlist.HiscontactattheclientinformedhimthatLandawouldbeoffthelistnexttimearound.ThismeantthatBrak’scompanywasinrealdangeroflosinganaccountworthmorethan$50million.

Brakhandpickedateamtohelphimontheaccount,andtheythrewthemselvesintohelpingthecustomer.Withineighteenmonths,Landahadclimbedtothenumber-onespotonthesamelist—animpossible,unheard-ofjump.ThecompanyhadgonefromworsttofirstineighteenmonthsbecausetheclientfeltthatBrakandhisteamhadtheclient’sback.

Soonthereafter,Brak’scounterpartattheclient,whomwewillcallJulie,sentBrakandhiswifeathoughtfulcarepackagetocongratulatethemonthebirthoftheirchild.Shefollowedthisupwithakindvoice-mailmessageinwhichshereferencedtheupcomingrenewalofhercompany’scontractwithLanda.ShetoldBrakthattheycouldsavetheenergiesoftheirrespectiveteamsbeforetheholidaysifsheandBrakmetone-on-oneandgotthedealdonebyearlyDecember.Shetoldhimthatshehadthebudgetandthatinhermindthiswasgoingtobeeasy.

ThiswastremendousnewstoBrakforafewreasons.First,Julie’swordsreinforcedtheleveloftrustshehadinhisteamandLanda’sservices.Second,

reinforcedtheleveloftrustshehadinhisteamandLanda’sservices.Second,withthescopeofthisdeal,Brakandhisteamwouldhittheirnumbers,whichwouldbeimportantforthecompanyasawhole.Andthird,forareasonpeculiartoLanda,thetimelyclosewouldmeanthattheywouldmeettherequirementsofaninternalLandametricthatlaylikeasharpbladeonthenecksofthecompany’ssalesteams.

WhatisthismetricthatstirssuchfearamongLanda’ssalespeople?AlargeportionofLanda’srevenuescomefromexistingcustomercontractswithbuilt-inrenewaldates.Someoneinthefinanceareaofthecompanyhadresearchedtheseaccountsandfoundthatrenewalsthatwereclosedaftertheirrenewaldatesresultedonaverageinsignificantlyreducedcontractamounts.Companyleaderswantedtoforcetheirsalespeopletogetthedealsdonebeforetherenewaldatepassed,andthisrenewalmetricwastheirwaytodothat.Tohitthemetric,salespeoplemustcloseallsuchcontractsbytherenewaldateat105percentormoreofthepriorcontractamount.Failuretodothismeansahugehittocompensationupanddowntheline.

Somuchforthetheory;hereiswhathappensinactualpractice:Thepenaltiesformissingthemetricaresoseverethatsalespeopleendupgrantingconcessionstheywouldn’tgiveotherwisetoclosetheirdealsontimeandachievethemetric.Soametricdesignedtokeepsalespeoplefromlosingtoomuchaftertherenewaldateactuallyincentivizesthemtogiveawaytoomuchinadvanceoftherenewaldate.Likemanyinternalmetrics,ameasurethatseemstomakesenseintheabstractproducestremendouslynegativeunintendedconsequenceswhenputintoactualpractice.

InBrak’scase,thecontractrenewaldatewithJulie’scompanywasDecember31.HeandJulieworkedouta$66millionrenewalcontractbyearlyDecember.Thisfigurerepresentedanearly$10milliondiscountoffthenormalvalueoftheservicesLandawouldbeproviding.ButBrakfeltthesediscountsbothhelpedJulieandhercompanyandmadegoodbusinesssenseforLandaaswell.Heandhisteamweregladthatthedealwasbeingfinalizedfarenoughinadvanceofthemetric’sdeadlinetoavoidthepressurethatbuildswhentheclockiswindingdown.

Thenthingsgotrocky.Julie’sfinancepersonranthenumbersonthedealandthoughttheyshowedthatLandawastakingadvantageofthem.Atfirst,Juliedidn’tbelievethis,asitflewinthefaceofherexperiencewithBrakandhisteam.Butheranalystwasadamant,andheconvincedJuliethatLandawasn’tbeingtruthful.ShefeltbetrayedandjumpedintothedetailstoseehowBrakandhisteamwerestiffingthem.

BrakwassurethatJulie’sfinancepersonhadfouleduptheanalytics,asLanda’sowncalculationsshowedthatJulie’scompanywasgettingjustasgoodofadealasBrakhadoutlined.Theeffectofthisdelay,however,wasthattheDecember31deadlineofLanda’sowninternalmetricstartedtocutatthepsychesofthoseupanddownLanda’sleadershipchain.Theystartingworryingaboutthemselvesratherthanthecustomer.BrakwasgettingseverepressuretodoanythingnecessarytogetthedealdonebyDecember31.

Feelinganxioushimself,Brakgavein.Toensurethatheandhisteamwouldmeettheirmetric,heendedupapprovinganadditional$6millionincutstolowerthecontractto$60million.

Youmightthinkthatthiswasgoodforthecustomer.Infact,however,thesecutsweren’tbeingmadeforthebenefitofthecustomer,andbothBrak’sandJulie’steammembersknewthis.ThewholemachinerywithinLandawasgrindingtomeetitsownmetric.Whileit’struethatJulie’scompanyhappenedtoreceivefurtherfinancialbenefitasaresultofthis,Landa’sinwardfocusturnedarelationship-based,outward-mindsetapproachintoatransaction-basedsale,whichwouldputatriskLanda’sabilitytohelpJulieandherteaminthefuture.

Thenthesituationgotworse.Juliesuddenlydroppedoffthegrid.Daysslippedbywithoutthedealgettingsigned,andBrakcouldn’tgetaholdofher.Heevenflewintotownunannouncedtotrytomeetwithher,buttonoavail.PanicsetinamongLanda’sNorthAmericanbusinessunitleadershipteam.IfthisdealBrakwasworkingonmissedthemetric,itwouldputthewholeNorthAmericannumberbelowplan.Careershunginthebalance.

Finally,onDecember28,JuliecalledBrak.Itturnsoutthatadealofthissizecouldbesignedonlybyhercompany’sCEO,andJuliehadbeenunableorunwillingtotakethedealupthelineforhissignature.BynowtheCEOwasoutofthecountryandwouldn’tbeavailabletosignuntilthefirstorsecondweekofJanuary.“That’snotgoingtowork,Julie,”Brakresponded.“Theconcessionswemadewerecontingentonyourcompanyexecutingthedealbythethirty-first.Januaryisn’tgoingtoworkforus.”

“Sorry,”Juliesaid,“butthat’sthebestIcando.It’sgoingtohavetobeJanuary.”

Brakwasovercomewithdisappointment—mostlyinhimself,asheknewthatallowinghimselftobedrivenbyametricthathadnothingtodowiththecustomerhadunderminedhisrelationshipwiththecustomer.

Theyclosedthedealtwoweekslaterat$60millionandmissedtheinternalmetric.Asaresult,NorthAmericamisseditsnumber,whichhadseriousrepercussions.Furthermore,despitethehugediscountsreceived,thecustomer

repercussions.Furthermore,despitethehugediscountsreceived,thecustomerspecificallydemandedthatTomBrakinsberemovedfromtheaccount.AndwithBrakofftheaccount,Landaimmediatelybegantumblingdowntheclient’spreferred-supplierlistagain.

Eventoday,youhearthepaininBrak’svoiceashespeaksofthisexperience.“Allofthiscouldhavebeenmanaged,ifnotavoidedaltogether,”hesaid,“hadwethoughtmoreaboutourcustomerandtheirmetricsandlessaboutourselvesandourownscrewed-upinwardmetric.Ourinwardfocusmessedusupbothinternallyandexternally:externallybecausethiswholeexperienceruinedtherelationshipwiththiscustomer,andinternallybecauseabouttwentypeopleinsideLandalosttheirheartfortheorganizationbecauseofwhathappenedonthisdeal.Theyheardalltheinternalmessaging—‘Obsessaboutthecustomer,obsessaboutthecustomer’—andthen,whenitcamerightdowntoit,theysawcompanyleadership,includingme,obsessingonlyaboutourselves.Fromthatmomenton,awholebunchofpeoplebasicallyquitonthecompany.Theydidn’tbelieveintheplaceanymore.”

Whatwentwronginthiscase?ThemetricLanda’sleadershipdevisedtomanagetheeffortsoftheirsalespeoplehadnoconnectionwhatsoevertotheneedsofcustomers.Asaresult,themetricturnedthesalespeople’smindsawayfromtheircustomersandtowardthemselves.Obsessionwiththeinternalmetricwithoutacounterbalancingfocusontheneedsofthecustomerrewardedandinvitedaninwardmindset.

ComparethisstorywiththestoryofHopeArisinginchapter9.HopeArisingdiscoveredthatmeasuringsuccessintermsofhowmuchcleanwatertheydelivered(aninternalmetric)didnotyettellthemwhethertheyweremeetingtheneedsofthepeopletheyweretryingtoserve.Becomingmorecuriousaboutthepeopletheywereserving,theydiscoveredthatthosepeoplecaredaboutcleanwaterprimarilybecausetheywantedtheirchildrentobeinschool.Afterdiscoveringthis,HopeArisingbeganmeasuringthesuccessofitseffortsbymeasuringthedaysspentinschoolbythechildreninthoseareas.NotehowdifferentthisfocusfeelsfromthefocusLandainvitesfromitssalespeople.WhereasLandameasuressuccessprimarilyintermsoftherevenueitreceivesfromitscustomers,HopeArisingmeasuressuccessprimarilyintermsofthepositiveimpactitishavingonitscustomers.

Whichorganizationwouldyouratherworkfor?Whichorganizationwouldyouratherbuyfrom?Leadersoforganizationsthatoperatewithaninwardmindsetmayfeel

confusedbywhattheyseeinorganizationsthatoperatewithanoutwardmindset.Itwillseemriskytomanagethosetheyseeandtreatasobjectswithsystemsandprocessesthataredesignedtoempowerpeople.

Thisisoneofthereasonswhyanoutward-mindsetapproachbecomessuchacompetitiveadvantage.Thosewhoareunwillingtoadoptanoutwardmindsetwon’tbeabletosuccessfullyreplicateoutward-mindsetsystems,processes,andapproaches,whileorganizationsthatturnsystemsandprocessesoutwardbecomepositionedtoachieveandsustainhigherlevelsofperformance.Considerafewexamplesfromearlierchapters.

Theoutward-mindsetplanningprocessadoptedbyLouiseFrancesconiandherexecutiveteam(chapter3)allowedthemtodramaticallyshortentheplanningcycleascomparedtotheircompetitors.Theoutward-mindsetcustomerserviceprocessesandemployeeincentivestructuresatCFS2(chapter7)producedindustry-leadingreturns.Theoutward-mindsetreportingpracticesatFord(chapter8)positionedthecompanytobeabletogetinfrontofthefinancialcrisisinwaysthatotherscouldn’t.TubularSteel’sdisciplinedefforttohelpeverypersonandeveryteamintheorganizationtorethinktheirrolesandresponsibilitiesinanoutward-mindsetwayproducedindustry-leadingperformance(chapter10).

Hiringandonboardingapproaches,salesandmarketingprocesses,budgetingpractices,incentivestructures,performanceevaluationandmanagementsystems,andeveryotherorganizationalsystem,structure,andprocesscanbeconceivedanddeployedininward-mindsetoroutward-mindsetways.Organizationsthatareseriousaboutoperatingwithanoutwardmindsetturnthesesystemsandprocessesoutwardtoinviteandreinforceoutward-mindsetworking.

16•TheRoadAhead

NeartheendofanArbingertrainingeventwithemployeesofalargemanufacturingcompany,thefacilitatorexplainedthatonepersonchangingtoanoutwardmindsetdoesn’tmakeothersrespondinkind;othersstillchoosetheirownmindsets.

Oneoftheparticipantsspokeup.“Iunderstandthat,”shesaid,“butIoftenresponddifferentlytopeoplethatIknowcareaboutme;Ijustdo.Theydon’tmakemeresponddifferently,butit’salmostlikeIcan’thelpit.Somethingabouttheirconcernformeinvitesmetostartthinkingmorecarefullyaboutthem.”Headsnoddedaroundtheroom.

“That’smyexperiencetoo,”saidanother.“Forme,it’ssurprisinghowoftenmindsetchangeinonepersondoesendupinvitingchangeinothers.”

Amansittinginthebackoftheroomstrenuouslyobjected.“Idon’tagreewiththatatall,”heargued,hisvoicerising.“I’moutwardmindsetalmostallthetime,butitdoesn’tseemtomatter!”Theveinsinhisneckbulgedashesaidthis,andsomeparticipantschuckledtothemselvesattheapparentironyinhisresponse.

Atthispoint,awomaninthebackoftheroomraisedherhand.Shehadn’tspokeninthegroupuntilthismoment.“CanItellyouastory?”sheasked.

“Certainly,please,”thefacilitatorresponded.Shebegan:

Manyyearsago,mybrothercommittedaterriblecrimethatlandedmyfamilyonthefrontpageofthenewspapersformonths.Theordealdestroyedourreputationandrippedatthefabricofourfamily.ThereisnowaythatIcandescribetheconfusionandpainweallfelt;itdevastatedus.Onebyonewemovedawayfromtheareatogetoutfrombeneaththeshamewefeltandtotrytobuildnewlives.Astheyearswenton,wewouldperiodicallygatherforafewdaystokeepthefamilyconnected,butthenewfamilyfabricwewerefashioningwasknitpartlythroughthecollectiveactofexorcisingourbrotherfromour

familyidentity.Afterafewdecades,thisolderbrotherwasfinallyreleasedfrom

prison.Ithadbeenalmostlongenoughforustocompletelyexpungehimfromourconsciousness.Yetsuddenlyhewasback.Soonthereafter,wehappenedtohaveafamilygatheringscheduled,andheshowedup.Wemadesmalltalkwithhim,buttherewasstrainanddiscomfortineveryword.Howcouldtherenothavebeen?Herewastheguywestillfelthadruinedus.

Afterashortpause,shecontinued.

Sometimeduringlunchonthatfirstday,mybrotherslidaway.Byeveningtime,wesuspectedthathewouldnotbereturning,andtobehonest,wewererelieved.Wedidn’thavetoforceconversationsanymore;wecouldjustrelaxandenjoyeachother.Wecouldgobacktobeingthefamilywehadfinallymanagedtobecome.

Astheeveningprogressed,however,arealizationsettledonme.Isawhowcloseweweretolosingthisbrotheragain—thistimemaybeforever.AndIknewinthatmomentthatIcouldn’tallowthistohappen.Thatdidn’tmeanInolongerhadhardfeelingsoranything;Iwasasconflictedastherestofthefamily.ItjustmeantthatIknewIcouldn’tjustlethimgo—likeIdidn’tcareabouthimorsomething.IresolvedinthatmomentthatIwouldmaintainthefamily’sconnectionwithhimbyreachingouttohimwithalettereverymonth.Itwasasmallthing,butitwassomethingIknewIcoulddo.

Thatwassevenyearsago,andI’vewrittenhimeverymonthsince.Andyouknowsomething?I’veyettohearbackfromhim.

Therewasanaudiblegaspintheroom.“No,butthat’sokay,”sheresponded.“BecauseI’mnotdoingitforme,I’mdoingitforhim.”

Thisstoryillustratescriticallessonsforanyonewhowantstosustainanoutwardmindset.Sometimeshavinganoutwardmindsetisrathereasy.Wemaybeamongpeoplewhocareabouteachother,anditmayseemutterlynaturalandeasytorespondtothemwithanoutwardmindset.Ourteamsatwork,forexample,maybefilledwithenergeticandhelpfulindividuals.Orwemaybefortunatetobeinafamilyfilledwithkindandgenerouspeople.Insuchcasesitisrelativelyeasytomaintainanoutwardmindset.Why?Becausewefeelsocaredforandconsideredbythosewhosemindsetsareoutwardtowardusthatwe

feelnoneedordesiretobedefensivetowardthem.Almosteffortlesslywefindourselvesnaturallyshowingconsiderationinreturn.AsBrendaUeland,whomwequotedinchapter9,taught,wefindourselvesunfoldinginthepresenceofsuchpeople.Anoutwardmindsetinonepersoninvitesthesameinothers.

Unfortunately,thesameprincipleworksaswellinreverse.Whenweinteractwithsomeonewhoisoperatingwithaninwardmindset,wemayfeelthatheisfailingtoconsiderourviewsoropinions,andwecanseethatasaninvitationtotakeoffenseorwithdraw.Ifwedo,wewillgivebacktothispersonexactlywhatheisgivingtous,andwewillbecomeembroiledinaninwardmindsetstrugglelikethecreditandsalesteamswediscussedinchapter10.Suchstrugglesmaylastforaminute,foraday,orperhapsevenforalifetime.

Althoughaninwardmindsetinonepersondoesnotcauseotherstorespondwithaninwardmindset,itdoesinviteotherstorespondinkind.Thechallengeishowtorespondwithanoutwardmindsetwhenthoseweworkorlivewithinvitetheopposite.

LongbeforeMarkBallif,whomwewroteaboutinchapter1,becameasuccessfulexecutive,hewasayoungworkerinhisfirstpostcollegejobandwasstrugglingwithhisboss.Hehadgraduatedfeelingasifhehadalottocontribute,andheelectedtojoinayoungcompanywithamissionhereallybelievedin.Oneofthefirstdozenemployeesatthefirm,hewasexcitedtohelptheorganizationgrowintowhatheknewitcouldbecome.

However,asthedaysgrewintomonths,andthosemonthsexpandedintothefirsttwoyearsofhisprofessionalcareer,Markgrewincreasinglydisenchanted.Twoyearsin,hefeltasifhehadnomoreresponsibilityintheorganizationthanonthedayhestarted—whichmeantonething:hisbossdidn’tthinkhehadanymoretooffer.

Markfeltheldback,overlooked,andunappreciated.Everydayhefeltvictimized—prohibitedfromexercisinghisgifts.Frustrationgrewintoanger.ThefutureMarkhadenvisionedseemedforeveroutofreach.Hestartedtocirculatehisrésumé.

Hewasinthemiddleofplanninghisexitwhenhisboss’sboss,someoneMarklookedtoasamentor,saidthathewantedtomeetwithhim.Afterallthosemonths,Markfinallyfeltvindicated.HeseeshowmuchI’mgivinghere,Markthought.Heknowshowharditistoworkformyboss,sohe’sgoingtostepinandmakethingsright.He’sgoingtoconsoleme,tellmeI’mdoingokay,andthenhelpchartapathwayformetogrowinthecompany.Markwalkedintothemeetingwithhopefulexpectation.

Whenhesatdown,however,hismentorsaid,“Mark,weneedmorefrom

Whenhesatdown,however,hismentorsaid,“Mark,weneedmorefromyou.”

Markwasmortified.Thisassessmentwassodifferentfromwhathehadanticipatedthatitstunnedhimintosilence.HelistenedashismentortriedtoopenMark’seyestohowMarkhadbeenholdingbackfromgivinghisbestinhiswork.

Marktriedtodefendhimselfinthatmeeting,buttheconversationledhimtobeginrethinkingsomeofhisactions.Hewenthomeandcouldn’tsleepthatnight.

Ashelayinbed,Markreplayedinhismindmanyeventsfromthepriorcoupleofyears.Atfirst,thesememoriesrekindledhisanger.Butashereconsideredwhathismentorhadsaidtohim,hebegantonoticetruthsabouthisexperiencethathehadpreviouslyoverlooked.Hesawhimselfavoidinghisbossandopenlycriticizingwhatshewanteddone.Herecognizedhisreluctancetostepupandtakeonnewchallenges.Hesawmopingandcomplainingandwithholdingandevading.

Asthenightworeon,Markbegantoquestiontheinternalnarrativeabouthisbossthatconstantlyraninhismind.Ifshe’ssoobviouslythevillainI’mclaiminghertobe,hewondered,whydoIhavetospendsomuchinternalenergytryingtoconvincemyselfofit?Ashethoughtaboutthis,itoccurredtohimthatthenarrativeitselfaffectedhowheinteractedwithandtreatedhisboss.WhatifwhatI’vebeentellingmyselfisn’ttrue?hewondered.Thequestionwasenoughtogethimoutofbed.

Hegrabbedayellowlegalpadanddrewalinedownthecenterofthepage.Intheleft-handcolumn,hebeganlistingthewaysthathereallyhadn’tbeenhelpfultohisboss—thewayshehadmistreatedherandsetherupforfailureanddisappointment.Hislistreachedhalfwaydownthepage.Thenontheright-handsidehebegantowritethewaysthathecouldhelp.Thislistfilledmultiplepages.Witheachpageturn,hefeltashacklecomingoff.Ashestaredattheideasthathadcomefloodingoutofhim,Markrealizedthatthepersonprimarilyresponsibleforholdinghimbackhadbeenhimself.Therealizationfreedhim.Aworldofnewpossibilitydawnedinhismind.

WhenMarkreturnedtowork,hebeganimplementingsomeofthechangeshehadwritten.Ashedidso,hediscoveredthatwhathisboss’sbosshadsaidtohimwastrue:notonlydidtheorganizationneedmorefromMark,hewascapableofmuchmore.Hewasnotthevictimhehadbeenplaying.Washisbosssometimesdifficult?Yes.DidMarkstillsometimesfeelmistreated?Again,yes.

Notwithstandingthis,herealizedthathehadbeenusingtheseissuesasjustificationsforhisownlackofeffort.Someofthechallengeshefacedwerereal,buthisconstraintsweremostlyhisown.Hehadalwaysbeenfreetodomoreandbetter.

Marksaysthatthisexperiencewasacareerchangerforhim.HelikelywouldnotbewhereheistodayhadhismentornotcaredaboutandbelievedenoughinMarkandthecompanytotellhimthetruthabouthisperformanceandtoinvitehimtodomore.

Witharenewedlevelofself-accountability,Markbegantoflourishinhisjob.Hebegantakingonmoreandmoreresponsibilities,andhisabilitiesgrewwithhisperformance.Withinayear,thisgrowthhadpreparedMarkforagreatopportunitywithoneofthefirm’shealthcareclients.Hisexperienceatthathealthcarecompanyequippedhimwiththeindustryunderstandingthateventuallyenabledhimtocofoundhisowncompany—anorganizationthathasenrichedthelivesofmillions.

ConsiderthecentralquestionthatemergedfromMark’sstory:WhatcanIdotobemorehelpful?

WhatcanIdotobemorehelpfulatwork?WhatcanIdotobemorehelpfulathome?WhatcanIdotobemorehelpfultothoseIknowandtothoseIdon’t?WhatcanIdo?AndwillIseemyselfandothersinwaysthatwillenablemetodowhatIcando?

Anindicationofanoutwardmindsetisthewillingnessofapersontohonestlyaskthesequestionsineachareaofhisorherlife,coupledwithanexcitementtobeginactingontheanswersdespitechallenges.Ifyouconsiderthestorieswehavesharedinthisbook,fromChipandhisSWATsquadmixingbabybottles,toAlanMulallysavingFord,tothewomanwhofeltthedesiretokeepreachingouttoherbrotherafterhisreleasefromprison,youwillseeboththisquestionandthisenergyatwork.

Sowhatwillyoudoasyouconsiderthepeopleyouworkwithandthepeopleathome?

Considerwhatwehavediscussed.Whateveryoudo,youcandoitwitheitheraninwardmindsetoranoutwardmindset.Whichwayyoudoitwilldeterminetoalargedegreeyourresults.

•Startwithmindset.Applytheoutwardmindsetpattern,SAM:seeothers,adjustefforts,andmeasureimpact(chapters8,9,and11).

•Don’twaitforotherstochange.Themostimportantmoveistoturnyour

mindsetregardlessofwhetherotherschangetheirs(chapter10).•Mobilizeyourselfandyourteamororganizationtoachieveacollectivegoal(chapter12).

•Allowpeople(beginningwithyourself)tobefullyresponsible.Ownyourwork—yourplans,youractions,andyourimpact—andpositionotherstoowntheirs(chapter13).

•Eliminatetheunnecessarydistinctionsthatcreatedistancebetweenyourselfandothers(chapter14).

•Totheextentyouhaveauthoritytodoso,rethinksystemsandprocessestoturnthemoutward;createanorganizationalecosystemthatenergizespeopleratherthanmanagesobjects(chapter15).

WehopethatforyouthisbookhasprovidedaserviceliketheserviceprovidedtoMarkBallifbyhismentor.Ifyouhavethought,IcandobetterthanIhavebeendoing,thenthebookwillhavebeenworththeread.

Sowhathaveyoubeenseeingandthinking?Andmoreimportantly,whatareyougoingtodoaboutit?

WehopeyouhaveenjoyedreadingTheOutwardMindset.Wehaveprovidedadditionalresourcesonline,includingamindsetaudittoolthatenablesyoutodiscoverthedegreetowhichyouandyourorganizationmaybeoperatingfromanoutwardmindset.Additionally,manyofthepeoplewehavewrittenaboutinthisbookhavegraciouslyallowedustofilmthemandtheirorganizations.Ifyouwouldliketolearnmorefromthem,youcanwatchthemsharethedetailsoftheirexperiencesatwww.outwardmindset.com.

Notes

Chapter21.NateBoazandEricaArielFox,“ChangeLeader,ChangeThyself,”McKinseyQuarterly,March2014.2.JoannaBarshandJohanneLavoie,“LeadatYourBest,”McKinseyQuarterly,April2014.

Chapter51.Foradetailedexplorationofthesubjectofjustificationandhowtheneedforitarises,seeoneorbothofourearlierbooks,LeadershipandSelf-DeceptionandTheAnatomyofPeace.

Chapter71.SarahGreenCarmichael,“TheDebtCollectionCompanyThatHelpsYouGetaJob,”HarvardBusinessReview,August16,2013.

2.Ibid.3.Ibid.4.ScottDavis,“GreggPopovichBrokeDownWhatHeLooksforinPlayers,andItWasanInspiringLifeLesson,”BusinessInsider,February22,2016.

5.MichaelLeeStallard,“NBA’sSpursCultureCreatesCompetitiveAdvantage,”FOXBusiness,February25,2015.

6.Ibid.7.Ibid.

Chapter81.IfyouwanttolearnmoreaboutAlanMulallyandwhatheandhisteamdidtosaveFord,wehighlyrecommendBryceG.Hoffman’sexcellentbook,AmericanIcon:AlanMulallyandtheFighttoSaveFordMotorCompany(NewYork:CrownBusiness,2012).

2.Hoffman,AmericanIcon,109.3.Ibid.,106–107.4.Ibid.,111.5.Ibid.,122.6.Ibid.,125.

Chapter91.BrendaUeland,StrengthforYourSwordArm(Duluth,MN:HolyCow!Press,1996),205.2.Ibid.,206.

Chapter121.Hoffman,AmericanIcon,71.

Chapter131.HannahArendt,TheHumanCondition,2nded.(Chicago:UniversityofChicagoPress,1998).

Chapter141.RichardSheridan,Joy,Inc.(NewYork:Portfolio/Penguin,2013),42.

ListofStories

Chapter1•ChipHuthandKCPDSWATteam—arrestsandbabybottles,3–8•MarkBallif,PaulHubbard,andtheoutward-mindsetapproachattheirhealthcarecompany,8–11

Chapter2•Miatryingtoimprovehercommunicationtechniques,14–15

Chapter3•LouiseFrancesconiandherteamcutting$100million,21–25

Chapter4•Ms.Tham,andhealthcareworkersorientingthemselvestohelp,31–32•IvanCorniabeatinghisfather’sfavoritecow,33–34

Chapter5•ChrisWallaceandhisfather,39–46•NotsharinginformationwithLori,47–48

Chapter6•Arbingerbeingself-focusedbeforeapitchtoapotentialclient,52–54•Arbingerrealizingithadaninwardmindsetinthewayithadworkedwithclients,54–55

•JoeBartleytuckinginhisdaughterAnna,57–58

Chapter7•NavySEALsandtheimportanceofanoutwardmindset,59•BillBartmannandthedebt-collectionagencyCFS2,61–63•TheSanAntonioSpursandtheiroutward-mindsetculture,63–65

Chapter8•AlanMulallyandtheFordturnaround,69–77

Chapter9

•Shorteningapowercompany’scapitalbudgetingprocess,79–81•BrendaUelandatparties,82–83•RobDillonofDillonFlorallearningtolovecustomervisits,83–84•Playinghide-and-seekwiththemisbehavingboy,85–88•AttorneyCharlesJacksonreturningmoneytohisclients,88–90•HopeArisingdetermininganoutward-mindsetmetricforcleanwaterdeliveryinEthiopia,90–91

Chapter10•JackHauck,LarryHeitz,AlKline,andTubularSteel,93–94,96–100

Chapter11•KCPDofficerMattTomasicbeingprotectedfromadangeroussuspectbycommunitymembers,107

•MattTomasicleadingchangeontheWestSideofKansasCity,Missouri,107–111

•Acompanyresolvingalabor-managementdisputetoavoidarbitration,111–112

Chapter12•Thecollectivegoalsofmanyoftheorganizationsinthisbook,115–117

Chapter13•JohnandSylviaHarrisplanningwiththeirchildren,121–123•DanFunkhelpingemployeesturntheirwholebrainsbackonintheirwork,123–126

•RobAndersonandtheSuperiorWaterandAirleadershipteamplanningtheirworkwithanoutwardmindset,126–129

Chapter14•Executivesonthesamefloor,133–134•Effectofaparentwhoviolatesfamilyrules,134•AlanMulallyeatinginthecompanycafeteriaratherthanFord’sexecutivediningroom,134–135

•ScottO’NeilandMadisonSquareGarden,136–137•Hospitalsand“ancillarystaff,”137–138•RichardSheridanandMenloInnovations,138–139

Chapter15•Perverseeffectofaforced-distributionratingsystemataglobaltechnology

•Perverseeffectofaforced-distributionratingsystemataglobaltechnologycompany,143–144

•TomBrakins,LandaCorporation,andtheeffectofinwardlyfocusedsuccessmetrics,146–151

Chapter16•Womanwhosebrotherwasreleasedfromprison,153–155•MarkBalliflearningthathecoulddomore,156–159

Index

accountability,69,75,89–90,120,159alignment,scaled,127–130ancillarystaff,137–138Anderson,Rob,126–128apologies,88–90Arbinger,52–58,79–82,133,153–156Arendt,Hannah,121automobileindustrycrisis(2007–08),75

Ballif,Mark,8–12,115,116,133,156–159,160Bartley,Joe,57–58Bartmann,Bill,61–63,116behavior-changeefforts,13–20,111behavior(s)andabilitytocommunicate,31–32adjustingefforts,85–88changing,130–131,153–156compliantversuscommitted,18–19ofcoworkers,124–125differencesin,accordingtomindset,24–26asdriverofresults,14,16–17impactsof,69,89–90,120,136influencingothers’,33–34soft,102

beliefsaboutoneself,15–16bell-curverankingsystem,143–145bigshots,133,135,139blamingothers,48–49Boeing,70,71,134

BPR(BusinessPlanReview),71,73,75,76,82Brakins,Tom“Brak,”146–151BusinessPlanReview(BPR),71,73,75,76,82

Callon,Lynda,109–110,115CFS2,61–63challengesawarenessofothers’,69–70,76,88customerservicereps,126–128helpingeachotherwith,75–76,79–81,84open-mindsetapproachto,128–129,156overcoming,99responsesto,111–113,119,126,138,158–159

changebehavior(seebehavior-changeefforts)changingapproaches,85–88changingyourownmindset,158–159in/forchildren,94–95creditdepartment,98–100culture-changeinitiative,52–58desirefor,94–95fearof,101influencing,33–34measuringimpactof,136mindset(seemindsetchangeapproaches)organizationalculture,19,52–53slowapproachto,111,113unilateral,96

changingyourownmindset,158–159chartmaking,71–75,135children,85–88,90–91,94–95,122,134,151.Seealsofamilycleanwater,90–91

collectiveresult,24–25,115–118,120,127,160Colwell,Jack,6,7

communicationskills,14–15,16,31–32,82community,mindsetchangethrough,111competitiveadvantage,152compliantversuscommittedbehavior,18–19conflictresolution,labor-management,111–113cooperation,approachforimproving,7–8Cornia,IvanandWilliam,33–35cost-cutting,21–25,29,32,35,115,117,152creditdepartment,98–100CSRs(customerservicereps),126–128culture,organizational.Seeorganizationalculturecustomerrelations,120customers,83–84,136–137customerservicereps(CSRs),126–128

daughter’struth,57–58debt-collectionagency,61–63deception,self-,27desire,awarenessofothers’,88diagrams(budgetplanning),79–84differences,trappingsof,133Dillon,Rob,83–84DillonFloral,83–84directreports,120disciplinarytechniques,85–88disenchantment,156–159

effortsadjustingour,85–88forincreasinghelpfulness,69,76,100–102,112,118,125,129lackof,158–159

empowerment,117engagementwithothers,12,29–31,83–84,133Ethiopia(cleanwater),90–91Evans,Bob,4

failure,10–11,47family,39–49,121–123,153–156.SeealsochildrenFields,Mark,73–75forced-distributionsystems,143–144,145–146FordMotorCompanyperformance,69–77,82,94,115,116–117,134–135,159FOXBusiness,63–64Francesconi,Louise,21–25,29,32,35,115,117,152Funk,Dan,123–126,127

goalsaccomplishing,127annualgoalsetting,24–25collective,116–117,160focusonorganizational,60–61performance,72forshiftingmindset,94,96

Harris,JohnandSylvia,121–123,141HarvardBusinessReview,61Hauck,Jack,93–103,115,117healthcarefacilities,8–12,31–32,123–126,137–138,159Heitz,Larry,96–97,99–100,115,117helpfulnessadjustingworkforincreasing,69,76,85–88,100–102,112,118,125,129desiretobemorehelpful,142,158–159focusingon,54,62learningtobemorehelpful,84meaningofbeinghelpful,87–88mindsetchange,107–111promptingchangetoward,135–136spreading,75underlyingmindsetfor,20

HopeArising,90–91,151Hubbard,Paul,8–12,115,116,133humanity,49,88humility,8–9,133

Huth,Charles“Chip,”3–8,12,15,19–20,108,115–116,159

ideageneration,124–126impasses,cost-cutting,21–25informationsharing,47–48introspection,30–31inwardmindsetbehaviors,24–27culture-changeinitiative,52–58diagramof,30,51effectsofhaving,52,101–102engagementwithothersand,29–31escapingfrom,35examplesof,61interestinotherswith,46–47mostimportantmovediagram,95–96outwardlynice,55–57reasonsforhaving,39revertingto,144struggleswith,156systemsandprocessesof,141–142

inwardness,organizational,52

Jackson,Charles,88–90justification,47–48,51

KansasCityPoliceDepartment(KCPD),3–12,15,19–20,101,107–111,115–116

Klein,Al,98–99

labor,divisionof,121labor-managementdispute,111–113,117LandaCorporation(pseud.),146–151leader/leddistinctions,121leaders/leadershipdysfunctionalhealthcarefacility,123–126

familyapproach,121–123fearandworryof,102–103humilityforgood,133withinwardmindset,151–152MadisonSquareGarden(MSG),136–137makingunusualmoves,23–24reasonsforfailures,10–11results-oriented,118rolesof,120segregationfromothersof,133–134trappingsof,134–135unilateralchangefor,96

leading-with-mindsetapproach(behavioralchange),19–20

MadisonSquareGarden(MSG),136–137managementapproaches,69–77,82,94,111–113,115,116–117,134–135,159managers,objectivesof,119McKinsey&Company,studiesonmindset,16–17MenloInnovations,138–139metrics,55,76–77,88–91,136,146–151mindsetbeliefscomparedto,15–16definition/meaningof,15asdriverandshaperofbehavior,12inward(seeinwardmindset)outward(seeoutward-mindsetentries)

mindsetaudittool,161mindsetchangeapproaches,10adjustingefforts,85–88behavior-pushapproach,18changingyourownmindset,158–159effectsof,101–102,153–156findingbetter,99goalof,94

KansasCityPoliceDepartment(KCPD),107–111methodologyfor,135–136mindsetmodel,17needsofothers,109–110readinesstodeploy,135reconsideringsystemsandprocessesfor,141–146,160slow,111,113

mindsetcontinuum,26mostimportantmove(diagram),95–96motivation,25,102,107,116MSG(MadisonSquareGarden),136–137Mulally,Alan,69–76,82,94,115,116–117,134–135,159

NavySEALcandidates,59,101needsawarenessofothers’,29,46,53–54,69,76,88,108customerservicereps,126–128seeingandunderstandingothers’,81

Newson,Rob,59–60

objectives,53–54,69,76,81,119,126–128,128–129obligations,inworkplace,69,119–120,134Olson,Terry,85–88onboardingapproaches,152O’Neil,Scott,136opportunities,inabilitytosee,82organizational-changeefforts,16–18organizationalculturebuilding,115changing,19,52–53culture-changeinitiative,52–58outward-mindset,63,115–117,120,143producingdifferent,100–101

organizationalinwardness,52–58

organizationalvision,10,72,101,115,157organizations,characteristicsof,117–118,123,129,142.Seealsoworkplaceothersdesiretohelp,47–48distortedviewsof,48–49effectsofchangingmindseton,153–156engagementwith,29–31,83–84,133guidelinesforconsidering,160howwethinkandfeelabout,45,47–48ignoringneedsof,52importanceof,133lackofawarenessofneedsandobjectivesof,54–55aspersonsversusobjects,32seeing,79–84takinginterestin,82–83understandingexperienceof,126–128

outputmetrics,91outwardlyniceinward-mindsetstyle,55–57outward-mindsetapproach/patterns,8behaviors,24–27commitmenttocultureof,100–101effectsofchangingto,101–102engagementwithothersand,29–31examplesof,11,35fearof,102FordMotorCompanyperformance,69–77,94,115,116–117,134–135,159implementation,79–84,85–88,88–91individuals,70,119,128,130mostimportantmove(diagram),95–96NavySEALs,59organizationalorindividual(diagram),60–61organizations,129–130SAMapproach,69,160SanAntonioSpurs,63–65

structuralimpedimentsto,146sustaining,156–157systemsandprocessesof,141,142–143

outwardness,31partnershipapproach,62–63patterns,outward-mindset.Seeoutward-mindsetapproach/patternspeers,obligationstoward,120

performanceapproachesforimproving,16–20behavior-pushapproach,18mindsetmodel,17ratingsystemsfor,143–145self-checkson,159SeealsoFordMotorCompanyperformance

performancereviews,144–145planningprocesses,121–123,141Popovich,Gregg,63–65,115,116“problemisme”principle,103“problemisyou,”93–103processesandsystems,141–146,160

relationships,39–49,48–49,124–125responsibilitiesdesiretoexpand,125–126differencesin,134familyapproach,121–123giving/assuming,121formakinghelpfuladjustments,118forproblems,97foryourimpactonothers,88–90foryourself,33–49yours/others’,160

responsiveness,4,5,11,123roles

rolesalignmentrelativetoothers’,118assumptionsabout,138ofbehaviors,15impactonprofitabilityand,117ofleaders,120redefiningyour,118–121rethinking,152waysofthinkingabout,60–61,76,99,127–130workplace,58,69,134

SAMapproach,69,160SanAntonioSpurs,63–65,116SEALcandidates,59,101securityteam,143–144seeingothers,79–84self-absorption,33–49self-accountabilitychecks,89–90,159self-aligningindividuals,118self-assessment,26–27self-deception,27self-talk,justificationofbehavior,48Sheridan,Richard,138–139single-spaceenvironments,138–139solutions,inabilitytosee,82SpecialAttentionReview(SAR),71Spurs,63–65,116start-with-mindsetapproach,111–113successfactors,15,31,47,55,64–65,71,151suicideoffather,39–49SuperiorWaterandAir,126–128SWATteam,3–12,15,19–20,101,115–116,159systemsandprocesses,141–146,160

teachers,85–88teamwork

budgetplanning,79–84changingtooutwardmindset,143–144clarifyingcollectiveresultsfor,118commitment,64–65focusof,130–131Fordperformance,69–77,82,94,115,116–117,134–135,159mindsetsofindividualsin,155outward-mindset-at-workframework,146–151respectforteammembers,116

thinker/doerdistinctions,122–123,127thinkers/doersdistinction,122–123,127Tomasic,Matt,107–111,115,117transparency,73–74trappingsofdifference,133treatmentofothers,33–34,137–139Trevino,Lee,53trust/trustworthiness,48,112,127,145,147truths,49,58TubularSteel,93–103,115,117,152

Ueland,Brenda,82–83,156unmanageablestudent,85–88

Vietnamesepatient,31–32Villalobas,Octavio“Chato,”110–111,115violence,33–35vision,organizational,10,72,101,115,157

Wallace,Chris,39–49water,90–91wholeselvesconcept,123workplacebeingmorehelpfulin,159differencesinresponsibilitiesin,134experienceofemployeesin,136,138

inwardmindsetin(diagram),51leader/leddistinction,121outwardmindsetin(diagrams),60,119outward-mindsetstrategies,54–55,60–61rolesandobligationsin,58,60–61,69,119–120,134rolesin,69,119–120,134shiftingfrominwardtooutwardmindsetsin,29Seealsoteamwork

zero-toleranceapproach,108Zorko,Rok,34

AboutTheArbingerInstitute

TheArbingerInstitutedeliverstraining,consulting,coaching,anddigitaltoolstohelpindividualsandorganizationschangemindset,transformculture,acceleratecollaborationandinnovation,resolveconflict,andsustainablyimproveresults.

Arbingerintroduceditsideastoaworldwidereadershipwithitsfirstbook,LeadershipandSelf-Deception,in2000.Thebookisaword-of-mouthphenomenonthathasbeentranslatedintooverthirtylanguages.Thiswasfollowedbyasecondinternationalbestseller,TheAnatomyofPeace,in2006,whichpresentsArbinger’suniqueapproachtoconflictresolutionandpersonalgrowth.TheOutwardMindset,publishedin2016,detailshowtomoveindividuals,teams,andorganizationsfrominward-mindsetorientationstooutward-mindsetorientations.

Asaresultofitsthirty-five-yeartrackrecordwithclients,Arbingerisnowrecognizedasaworldleaderintheareasofmindsetchange,leadership,teambuilding,conflictresolution,crisismanagement,andculturechange.Arbinger’sclientsrangefromindividualswhoareseekinghelpintheirlivestomanyofthelargestcompaniesandgovernmentalinstitutionsintheworld.

WorldwideinterestinArbinger’sworkhaspropelledthegrowthofArbingeracrosstheglobe.HeadquarteredintheUnitedStates,Arbingernowhasofficesinovertwentycountries,includingthroughouttheAmericas,Europe,Africa,theMiddleEast,India,Oceania,andAsia.

ArbingerembedsitsexpertisewithinclientorganizationsinpartbypreparingandcertifyinginternalexpertstodeliverArbingertrainingprogramswithintheirorganizations.TolearnmoreaboutArbinger’strainingandconsultingservices,findouthowtobecomeanArbingerfacilitatorwithinyourorganization,orexploreotherArbingerpublicationsandaccessclientcasestudies,pleasevisitwww.arbinger.com.

AlsobyTheArbingerInstituteLeadershipandSelf-DeceptionGettingoutoftheBox

Over1.5millioncopiessold!Publishedinover30languages!

“Packedwithinsight.Icouldn’trecommenditmorehighly.”—StephenR.Covey,authorofThe7HabitsofHighlyEffectivePeople

Arbinger’sfirstinternationalbestsellerexplainshowweendupgettinginourownway,bothpersonallyandprofessionally.Throughastoryeveryonecanrelatetoaboutamanfacingchallengesonthejobandinhisfamily,readerslearnthefascinatingwaysthatpeopleblindthemselvestotheirtruemotivationsandunwittinglysabotagetheeffectivenessoftheireffortstoachievesuccessand

unwittinglysabotagetheeffectivenessoftheireffortstoachievesuccessandincreasehappiness.Bycrackingtheelusiveproblemofself-deception,thislandmarkbookilluminatesthewaytothepowerfulpersonalchangethattransformsleadership,accountability,teamwork,andemployeeengagement.“ThisbookhastransformedboththewayIworkandthewayIlive.”

—RobertEdwards,ManagingDirector,WorldwideServices,FedEx

“AfantasticjourneythatcompletelychangedthewayIseemyselfasanindividualandaleader.”

—LouiseFrancesconi,VicePresident,RaytheonCompany

Paperback,240pages,ISBN978-1-57675-977-6PDFe-bookISBN978-1-57675-978-3

TheAnatomyofPeaceResolvingtheHeartofConflict,ExpandedSecondEdition

Over500,000copiessold!Publishedinover20languages!

“Abookthatcouldchangethefaceofhumanity.”—MarionBlumenthalLazan,Holocaustsurvivorandbestsellingauthor

Whatifconflictsathome,conflictsatwork,andconflictsintheworldstemfromthesamerootcause?Whatifwesystematicallymisunderstandthatcause?Andwhatif,asaresult,weunwittinglyperpetuatetheveryproblemswethinkwearetryingtosolve?

Throughanintriguingstorywelearnhowandwhywecontributetothedivisionsandproblemsweblameonothersandthesurprisingwaythattheseproblemscanbesolved.Yusufal-Falah,anArab,andAviRozen,aJew,eachlosthisfatheratthehandsoftheother’sethniccousins.Thisisthestoryofhowtheycametogether,howtheyhelpwarringparentsandchildrencometogether,andhowwetoocanfindourwayoutofthestrugglesthatweighusdown.“IlovedLeadershipandSelf-Deception,andTheAnatomyofPeacetakesittothenextlevel,personallyandprofessionally.”

—AdelAl-Saleh,President,IMSHealthEurope,MiddleEast,andAfrica

Paperback,288pages,ISBN978-1-62656-431-2PDFebookISBN978-1-62656-432-9

Berrett-Koehlerisanindependentpublisherdedicatedtoanambitiousmission:connectingpeopleandideastocreateaworldthatworksforall.

Webelievethattotrulycreateabetterworld,actionisneededatalllevels—individual,organizational,andsocietal.Attheindividuallevel,ourpublicationshelppeoplealigntheirliveswiththeirvaluesandwiththeiraspirationsforabetterworld.Attheorganizationallevel,ourpublicationspromoteprogressiveleadershipandmanagementpractices,sociallyresponsibleapproachestobusiness,andhumaneandeffectiveorganizations.Atthesocietallevel,ourpublicationsadvancesocialandeconomicjustice,sharedprosperity,sustainability,andnewsolutionstonationalandglobalissues.

Amajorthemeofourpublicationsis“OpeningUpNewSpace.”Berrett-Koehlertitleschallengeconventionalthinking,introducenewideas,andfosterpositivechange.Theircommonquestischangingtheunderlyingbeliefs,mindsets,institutions,andstructuresthatkeepgeneratingthesamecyclesofproblems,nomatterwhoourleadersareorwhatimprovementprogramsweadopt.

Westrivetopracticewhatwepreach—tooperateourpublishingcompanyinlinewiththeideasinourbooks.Atthecoreofourapproachisstewardship,whichwedefineasadeepsenseofresponsibilitytoadministerthecompanyforthebenefitofallofour“stake-holder”groups:authors,customers,employees,investors,serviceproviders,andthecommunitiesandenvironmentaroundus.

Wearegratefultothethousandsofreaders,authors,andotherfriendsofthecompanywhoconsiderthemselvestobepartofthe“BKCommunity.”Wehopethatyou,too,willjoinusinourmission.

ABKBusinessBook

ThisbookispartofourBKBusinessseries.BKBusinesstitlespioneernewandprogressiveleadershipandmanagementpracticesinalltypesofpublic,private,andnonprofitorganizations.Theypromotesociallyresponsibleapproachestobusiness,innovativeorganizationalchangemethods,andmorehumaneandeffectiveorganizations.

ConnectingpeopleandideastocreateaworldthatworksforallDearReader,

ThankyouforpickingupthisbookandjoiningourworldwidecommunityofBerrett-Koehlerreaders.Weshareideasthatbringpositivechangeintopeople’slives,organizations,andsociety.

Towelcomeyou,we’dliketoofferyouafreee-book.YoucanpickfromamongtwelveofourbestsellingbooksbyenteringthepromotionalcodeBKP92Ehere:http://www.bkconnection.com/welcome.

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