1. The Leading from the Heart Workshop ® Welcome to the Age of Corporate Governance

2. “You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing.”

3. “Ex-Tyco Chief Executive Kozlowski Sentenced to 8 to 25 Years” Headline / Bloomberg.com / 09.19.2005

4. Strong Fundamental Values “We must demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all company policies and laws.” Source: The Tyco Guide to Ethical Conduct

5. “We safeguard company assets.” Regency mahogany bookcase, c. 1810, $105,000 George I walnut arabesque tallcase clock, $113,750 Custom queen bed skirt, $4,995 Custom pillow, $2,665 Ascherberg grand piano, c. 1895, $77,000 Chandelier, Painted Iron, c. 1930, $32,500 Pair of Italian armchairs, c. 1780, $64,278 Persian rug, 20 feet by 14 feet, $191,250

6. “In corporate America, crime pays. Handsomely. Grotesquely, even.” Arianna Huffington Pigs at the Trough

7. “Ebbers’ luck runs out in sweeping victory for feds” Headline / USA TODAY / March 16, 2005

8. “Chretien takes fall for AdScam: Gomery” Headline / Ottawa Sun / November 1, 2005

9. I said, “Ship the documents to the feds.” She heard, “Rip the documents to shreds.”

10. “There’s a hole in the moral ozoneand it’s getting bigger.” Michael Josephson BERNARD EBBERS DENNIS KOZLOWSKI MARK SWARTZ SCOTT SULLIVAN HARRY STONECIPHER HANK GREENBERG JOHN RIGAS TIMOTHY RIGAS JEFFREY SKILLING KENNETH LAY ANDREW FASTOW

11. Brian Shapiro University of Minnesota “ ” It’s as if we have given the CEOs weapons of mass destruction—at least economically.

12. “The stock market boom may be over, but the business scandal boom is on.” James Ledbetter, Slate Monday, March 25, 2002

13. “No-Bid Contracts Bring Scrutiny to N.J. Health-Sciences University” Headline / Chronicle of Higher Education / 06.17.05

14. “These aren’t presidential decisions. It’s micromanaging, and it’s beyond my competence.” Stuart D. Cook, former President University of Medicine and Dentistry of New Jersey

15. “A lot of this is nickel-and-dime stuff. I regard it, and many of my colleagues regard it, as a real distraction from the mission of the university.” Emanuel Goldman Faculty Senate President, UMDNJ

16. “New Study of High School Students Reveals High Levels of Cheating, Theft and Cynicism Despite Stated Convictions and High Self-Esteem Concerning Ethics, Character and Trust” 2004 REPORT CARD: The Ethics of American Youth Josephson Institute of Ethics

17. “The inconsistency seems to be explained by high levels of cynicism about the ethics of successful people.” Press Release Josephson Institute of Ethics

18. CYNICISM 59 percent agreed that “in the real world, successful people do what they have to do to win, even if others consider it cheating” 42 percent believe that “a person has to lie or cheat sometimes in order to succeed” 22 percent believe that “people who are willing to lie, cheat or break the rules are more likely to succeed than people who do not” Press Release Josephson Institute of Ethics

19. ONLY HALF, ONE OUT OF TWO, U.S. EMPLOYEES TRUST THEIR SENIOR LEADERS. DO YOURS TRUST YOU? Source: Watson Wyatt’s WorkUSA 2004 Survey 51%

20. “With fewer than half of employees expressing confidence in senior management, no company has been left untouched by the fallout from recent turmoil in the business environment.” -Ilene Gochman, Ph.D., Watson Wyatt

21. Consistency between an organization’s stated values and the actual behavior of its leaders is critical to credibility. When there is discrepancy between what leaders say and what they do, the leaders are exposed as frauds.

22. used-car salesperson… slick insurance agent… pushy politician… dishonest personal injury lawyer… greedy postal worker… postal

23. business leader… justice-obstructing, debt-hiding, earnings-overstating thief who uses company funds to purchase personal artwork and to put on lavish birthday parties for family members

24. People are searching for leaders with integrity who prove their credibility continuously.

25. Values-based leaders demonstrate six vital integrities. They:  Accept challenges and take risks  Master both listening and speaking  Live by the values they profess  Freely give away their authority  Recognize the best in others  Have a vision and convince others to share it

26. Vital Integrities Leadership actions that, when practiced proactively, demonstrate your organization’s existing values and further establish your credibility as a leader.

27. vital integrities [1][1] Accept Challenges and Take Risks values-based leaders: Risk seeking separates values-based leaders from the yesteryear-theory bureaucrats who sit around supervising the work. Why is that important? Leadership is proactive, as people can only follow leaders who are moving.

28. Risk Seekers …while others seek out opportunities to lead. Risk Takers Some people respond to challenges that are presented…

29. Other leaders are adventurers, continually placing themselves in positions to discover new challenges. They volunteer for the tough jobs and always question the status quo. For most leaders, the opportunity to meet a challenge is an assignment. Those leaders rise to a presented challenge.

30. PRO ACT I V E Leadership requires the courage to surround yourself with employees who are potentially better at their jobs than you are at yours. Admitting Ignorance By owning up to a lack of knowledge and deferring to their expertise, you’ll show workers that you are willing to risk your pride to get the job done.

31. PRO ACT I V E “In a time of constant change, one thing hasn’t changed: Organizations are still resistant to change.” Pushing for Change “The change agent of the old economy worked in an environment where incremental change was all that was needed—and all that was tolerated.” Robert Reich

32. PRO ACT I V E Challenging Bad Decisions “If you are in middle management, don’t be a wimp. Don’t sit on the sidelines waiting for the senior people to make a decision so that later on you can criticize them over a beer— ‘My God, how could they be so dumb?’ Your time for participating is now.” Andrew Grove, CEO Intel

33. PRO ACT I V E “Leadership is going first in a new direction—and being followed.” Andrew Grove Volunteering to Go First As a leader, you must summon the courage to chart the course, venture into the unknown, challenge defeat, and risk disappointment. Your initiative will encourage others.

34. “Doing what Ann and Liv did is much harder than reaching the peak of the mountain, flying a flag, and saying, ‘We’re heroes, take us to the parade.’” Will Steger

35. “Real leadership is not about getting to the top. In this game, leadership is about coming back alive.” - Will Steger

36. How we assess risk determines how we take risk. First, we weigh our chances of success. Next, we measure the importance of success. We also gauge how much control we have in the outcome. We assess our own skill. A values-based assessment should override all other assessments of risk. That is: does taking this risk demonstrate your adherence to the organization’s values, or not?

37. “I’m always wondering, how will I act at my moment of truth? Will I rise up and do what’s right, even if every fiber of my being is telling me otherwise?” Ann Bancroft

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39. [2][2] Master Both Listening and Speaking values-based leaders: The way we communicate with our employees impacts how workers understand our messages, and what actions, if any, they take in response. vital integrities

40. Boyd Clarke and Ron Crossland The Leader’s Voice “ ” The biggest problem with leadership communication is the illusion that it has occurred.

41. disconnect synergy buy in TLA human capital quality circle good people dog & pony show ball park figure carpet vs. concrete work-in- process job ready paradigm shift quality circle rightsize fuzzy math outsourcing talk offline surplused just-in-time jargon

42. Jargon is a specialized vocabulary coined by, and intended for, a particular profession or discipline. Industrial phrases, buzzwords, and acronyms are used as verbal shorthand to streamline communication among colleagues.

43. “Let’s talk offline after the MSA quality circle. We need to do some global thinking and examine best practices to find synergy in our co- curricular activities. I’ll meet you later in the living room of the campus to discuss a seamless, student-centered solution to our disconnect.”

44. “Sure, I can tell you how to get to the VC. Turn left at the Green, go past the Quad, take a right at the STAC, and continue past the Commons. You can’t miss it.”

45. “I pulled an all-nighter with ALICE and finished my research paper. Now I’ve got to get over this netlag, because I’m planning on seein’ the Governor tonight.”

46. “I gotta bounce to a chalk and talk taught by a TA who speaks EFL. I hope that sage on the stage can keep me awake.”

47. “Say what?”

48. JARGON often includes euphemisms used to substitute inoffensive expressions for those considered offensive.

49. These actions will “ align our resources with market needs and adjust the size of our infrastructure. ” – Chad Holliday, DuPont CEO announcing the elimination of 3,500 jobs

50. why jargon? Speakers sometimes invoke workplace jargon to impress others, or to establish their membership in an elite faction. Some use jargon to exclude or confuse others, or to mask their own inexperience or lack of knowledge.

51. “Although jargon is used by bureaucrats of all kinds to facilitate their own interactions, it seems to me that, in education, bureaucrats additionally employ jargon to keep their real agenda (the socialization of students) and their dismal academic results hidden from parents and taxpayers.” Barry Kavanagh, former Ontario college teacher

52. “The educational suitability assessments of this student’s official record of achievement indicate that his outcomes have not been at a level deemed appropriate for satisfactory completion of any of his courses. Therefore, he is not institutionally prepared.”

53. 20 percent of employees are regularly confused about what their colleagues are saying, but are too embarrassed to ask for clarification More than a third admitted using jargon deliberately—as a means of either demonstrating control or gaining credibility 40 percent found the use of jargon in office meetings both irritating and distracting One out of ten dismissed speakers using jargon as both pretentious and untrustworthy Source: Office Angels

54. “It is impossible even to think without a mental picture.” Aristotle On Memory and Recollection 358 B.C.

55. Hugh

56. Stories create the emotional perspective listeners need to connect with your message.

57. “The age-old secret to generating buy-in is to strategically design, target, and deliver a story that projects a positive future.” Mark S. Walton Generating Buy-In: Mastering the Language of Leadership

58. [3][3] Live By The Values They Profess values-based leaders: Now, since the onslaught of corporate scandals, we conceive of business leaders as justice-obstructing, debt- hiding, earnings-overstating thieves who use company funds to purchase personal artwork and to put on lavish birthday parties for family members. vital integrities

59. Values cannot simply be expressed in the words of a mission statement or marketing slogan. Values must be demonstrated in the leader’s character and actions.

60. 1.Wal-Mart$288.2 2.Home Depot 73.1 3.Kroger 56.4 4.Costco 47.1 5.Target 46.8 6.Albertsons 39.9 Source: www.stores.com Top 100 Retailers in 2004 Revenue in Billions

61. WAL MART > HOME DEPOT + KROGER + COSTCO + TARGET + ALBERTSONS

62. “Even though small businesses are one of the fastest growing sectors of the economy, access to capital remains a key barrier to growth for women- and minority-owned businesses.” -Jay Fitzsimmons, senior vice president of finance and treasurer, Wal-Mart

63. “We are lowering the costs to make health insurance more affordable.” Dan Fogleman Wal-Mart Spokesperson

64. “For us, there is virtually no distinction between being a responsible citizen and a successful business. They are one and the same for Wal-Mart.” H. Lee Scott Chief Executive, Wal-Mart

65. “These moves would also dissuade unhealthy people from coming to work at Wal-Mart.” Internal memo from Wal-Mart benefits director Susan Chambers

66. Source: Walker Information - Commitment In The Workplace: The 2003 National Employee Benchmark Study Workers who believe their organizations act with integrity are nine times more likely to stay in their current jobs.

67. Source: Walker Information - Commitment In The Workplace: The 2003 National Employee Benchmark Study But when they mistrust their bosses, or are ashamed of their organization’s conduct, workers say they feel trapped at work and are likely to leave their jobs soon. 4 out of 5

68. “Employees are assets with feet. They’re the only resource companies have that make a conscious decision to return the next day.” Press Release, Walker Information

69. EVERY DAY REHIRE your employees

70. [4][4] Freely Give Away Their Authority values-based leaders: Why the emphasis on giving away authority? Giving authority to others demonstrates trust in people. Trusted employees are more effective, creative, and satisfied. And a funny thing happens when you trust people—they trust you back! vital integrities

71. “Hierarchy is an organization with its face toward the CEO and its ass toward the customer.” -Kjell A. Nordström and Jonas Ridderstråle Funky Business

72. Giving away our authority is a personal challenge. It involves sharing influence, prestige, and applause, while forcing us to deal with our personal insecurities.

73. Wally who?

74. Once you abandon those concerns, you will recognize empowering others as its own reward.

75. Manager: “But my employees don’t want to be empowered!”

76. The bottleneck is at the top of the bottle. Gary Hamel “ ”

77. Micromanagers Micromanagers operate from a lack of trust— they distrust their employees—so they feel the need to maintain complete control. As a result, they set modest expectations for employees. Highly negative managers These leaders strip employees of their self- esteem. Employees may wrongly attribute their powerlessness to their own incompetence. To the delight of negative managers, their employees often feel too inadequate to seek other positions. Poor communicators Leaders who are unable to explain the “big picture,” or simply don’t share their vision, deprive employees of an understanding of why certain actions are taken. STYLE

78. “Not all malcontent employees are mavericks, but virtually every maverick is a malcontent.” Wayne Burkan, Wide Angle Vision

79. If you attribute free thinking to disrespect, your personal biases and preconceptions may result in missed opportunities. disagreeordisrespect?

80. If your mindset makes every outcome a foregone conclusion, your risk takers will stop challenging the status quo and you’ll find yourself left with a staff made up of past perpetuators.

81. Ralph Nader “ ” I start with the premise that the function of leadership is to produce more leaders, not more followers.

82. [5][5] Recognize the Best in Others values-based leaders: Values-based leaders recognize that each person’s talents are unique and that a person’s best opportunity for growth is in exploiting those strengths. vital integrities

83. “Geeks are different from other people. If this comes as a shocking statement to you, you’re either oblivious to others or unusually charitable with your opinion about others.” – Paul Glen, Leading Geeks: How to Manage and Lead People Who Deliver Technology

84. Just when you understand the difference between a megahertz and a megapixel, geeks start talking about link rot and packet jams. GEEKSPEAK

85. Geeks resist mainstream or official authority structures. They respect technical knowledge far more than where a person resides on the organizational chart.

86. As leaders, we would prefer that geeks behave like the rest of us. But our geeks’ personalities, even if grating to some, are immaterial to their productivity.

87. greatness achieve When we force our employees to strive for proficiency in everything, we miss the opportunity for them to or mastery in something— in the one area where they may, indeed, achieve just that.

88. When striving for improvement, most of us do the same thing: we take our strengths for granted, and concentrate all our efforts on conquering our weaknesses. The vast majority of organizations appear to believe that the best way for individuals to grow is to eliminate their weaknesses. So they instruct workers to recognize and focus on their deficiencies.

89. Gallop survey question: “At work do you have the opportunity to do what you do best every day?” Strongly Agree (20 percent)

90. Strongly Agree 38 percent more likely to work in business units with higher productivity 44 percent more likely to work in business units with high customer satisfaction scores 50 percent more likely to work in business units with lower turnover Source: Now, Discover Your Strengths Marcus Buckingham and Donald Clifton

91. Identifying each person’s strongest talents permits everyone the opportunity to contribute what they do BEST.

92. [6][6] Have a Vision and Convince Others To Share it values-based leaders: We often describe children as having wild or active imaginations. The best leaders never outgrow their imaginative gift. vital integrities

93. Have a Vision Good leaders have a vision. They hold in their minds pictures of what is possible. Vision is the power to conceive a future that’s better than the present.

94. Convince Others to Share It Great leaders convince others to share their visions by articulating them in memorable and inspirational ways.

95. Old story: Two stonemasons, working on the same project, are asked, “What are you doing?” The first stonemason replies: The second stonemason replies: “I’m cutting stone.” “I’m building a great cathedral.”

96. “I have a dream that one day this nation will rise up and live out the true meaning of its creed: ‘We hold these truths to be self-evident: that all men are created equal.’” Martin Luther King, Jr. Delivered on the steps of the Lincoln Memorial in Washington D.C. on August 28, 1963

97. Emphasized Common Values “It is a dream deeply rooted in the American dream.”

98. Described the Importance of the Values “And if America is to be a great nation, this must become true.”

99. vision’sopponents “I have a dream that one day down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification, one day right there in Alabama, little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.” disparagedthe

100. FORECASTED SUCCESS “When we allow freedom to ring…we will be able to speed up that day when all of God’s children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual, ‘Free at last! Free at last! Thank God Almighty, we are free at last!’”

101. “…we will not be satisfied until justice rolls down like waters and righteousness like a mighty stream.” Adapted from Amos 5:24 Selected Emotional Language

102. “Let the nation and the world know the meaning of our numbers…we are not a mob. We are the advance guard of a massive moral revolution for jobs and freedom.” Asa Philip Randolph August 28, 1963

103. “No one could remember an invading army quite as gentle as the two hundred thousand civil- rights marchers who occupied Washington today. The sweetness and patience of the crowd may have set some sort of national high-water mark in mass decency.” Russell Baker

104. “George wears his passions on his sleeve. He needs to learn to hide his emotions from his employees.” -From every performance review I’ve ever gotten

105. “Before you can inspire with emotion, you must be swamped with it yourself. Before you can move their tears, your own must flow. To convince them, you must yourself believe.” Churchill

106. vital integrities values-based leadership  Accept challenges and take risks  Master both listening and speaking  Live by the values they profess  Freely give away their authority  Recognize the best in others  Have a vision and convince others to share it SIX

107. Leadership is a craft, with the best practitioners guided by their values.

108. The Leading from the Heart Workshop ® www.allsquareinc.com