2009 BOC Athletic Trainer Regulatory Conference The New Normal and 21st Century Legacy Leadership Les Wallace, Ph.D.

Our Best Seller… Right Behind Good to Great 30 dimensions of Contemporary leadership New research on leadership development and succession Ten 21 st Century Legacy needs Gobs of other great stuff

Leading in the 21st Century We lead in a busy, complex matrix where we can easily… …mistake busy for successful …mistake for human contact …mistake Google & Wikipedia for intellectual activity …mistake a job for a life …mistake position for leadership …mistake goal achievement for impact …mistake management for leadership

21C…It’s Different Terrorism Nuclear Proliferation Economy Energy Climate Change HealthCare Regulatory oversight Pandemic Generational mix Integrity

21C…It’s Diffe rent Speed: blinding, touching every aspect of life. Complexity: quantum leap in mix of related forces. Risk: Upheaval raises threats and risks of “new.” Change: radical, drastic, quick. Surprise: hard to imagine—challenging sensibility and logic. James Canton, The Extreme Future (2006) Also: The Meaning of the 21 st Century, James Martin (2006)

The New Normal: Virtual  The growth of “on-line coursework” is 20% + per year  Hackers cost the U.S. economy $20 Billion in 2007  Costs from hacking in 2010 is $100 billion.  Data security administrator jobs growing at 20% +  Identity theft is up 1000% in the last three years  An Internet terror attack to U.S. is likely w/in next 5 yrs  The “virtual Board meeting” is a growing standard  If I can’t find you in 3-5 clicks—I’m unlikely to find you

The New Normal: Virtual “The internet is enabling conversations among human beings that were simply not possible in an era of mass media.” “Hyperlinks subvert authority by empowering every voice with an internet connection.” “Millions of people now online perceive companies as little more than quaint legal fictions that are actively preventing conversations from taking place.” The Cluetrain Manifesto (2000)

The New Normal: Virtual Unfiltered chat/newsgroup/ /blogs/twitters finding there way into search engines guarantees that your constituents daily browsing experience has a very strong flavor of individual authorship… …and in the process has the potential to undermine everything you’ve done to build brand credibility!

The New Normal: Virtually Transparent ?How many of your organizations have these available on-line: Your audited financials? Your CEO salary? Your annual budget? Credentials of your Board ? Minutes of meetings? Disciplinary action (generic) Most recent customer survey results ?

The New Normal: Diversity / Millennials  One half the world’s population is under 25  By 2020, new entrants to the workforce will be dominated by women and minorities— especially Hispanics.  How will these changes impact your organization?  76 million baby boomers will retire in the next 20 years… and take with them the wisdom of a generation.  Millennials appear to want little to do with management work—and are likely to job hop every months.

Leading in the 21st Century: From Heroic to Transformational Some thoughts for the day…  Legacy  The Leader in You  Integrity  Transformation  Distributed Leadership  Focus  Governance Leadership

Leading in the 21st Century If the 20 th Century taught us anything, it is to be careful with the concept… IMPOSSIBLE. A risk we face is applying old solutions to new problems.  May be time to change the conversation about leadership: to think differently!

Leading in the 21st Century  Legacy: How capable an organization is to lead itself versus depend on you!  Legacy: How well the organization transforms to stay vibrant, valuable, and relevant not simply manages change.  Thinking about legacy requires us to move beyond short term definitions of success  To consider a journey from success to significance  Success is accomplishing management goals… significance is making a lasting impact

Targeting Your Legacy C.O.P Model Competency Organizational/ Constituent Need Passion Legacy

Leading in the 21st Century Leaders help people think in the “future tense” Anticipating the future and our value in it is one of the most critical set of leadership competencies of our age : o External awareness o Strategic thinking o Innovation o Entrepreneurship o Leading transformation o Leadership vs Management

The Real Work of Leadership Get out of the Blender Into the Helicopter …see ourselves and our organizations from a distance—and test the moment to moment choices we make. “There comes a point in your career when the best way to figure out how you’re doing is to step back and ask yourself a few questions. Having all the answers is less important than knowing what to ask.” “What to Ask the Person in the Mirror” HBR 1/07

The person in the mirror? Leaders are Learners… …and they have an ethical responsibility to reflect, assess, and develop. The status quo is slow death—for organizations and for your leadership competencies. What to ask the person in the mirror?  Clarity of Vision and Priorities?  Use of Time—our most important premium resource?  Inclusive Input and Feedback?  Alignment: values, vision, strategy, operations?  Integrity: transparency, values based, honesty?  Leadership Succession Planning?  Thinking Differently? Transforming or Changing

Leaders are Learners ½ of all Fortune 100 CEOs have coaches! They all have mentors. Who’s your Coach? “Talent is overrated…a commitment to extensive learning and practice is more important to success than starting talent.” Tiger Woods, Indra Nooyi, YoYo MAH George Colvin, Talent is Overrated (2008) Malcolm Gladwell, Outliers (2008) When’s the last time you invested in building your leadership game?

Leading in the 21st Century From “Heroic” to “Transformational” “ Whereas the heroic manager of the past knew all, could do all, and could solve every problem, the post-heroic manager asks how every problem can be solved in a way that develops other people’s capacity to handle it.” Charles Handy The Age Of Unreason (1990)

Oversight lapses of this Board of Directors will impact every board for years to come.

Oversight lapses… scar this century Securities and Exchange Commission Board of Governors of the Federal Reserve System National Credit Union Administration Federal Deposit Insurance Corporation United States Department of Treasury 50 State Bank and Credit Union Regulators

Integrity Beyond Reproach “30% of U.S. High School kids have stolen from a store; 64% have cheated on a test (Josephen Institute 2008) Cheating is profitable:  Baseball--Barry Bonds,  2007 World Series of Poker--Jaime Gold,  NASCA--Darrell Waltrip/Jeff Gordon’s Crew Chiefs  Celebrity—Martha Stewart  Government—Illinois Governor Rod Blagojevich  Religion—Jim Bakker’s “sins of the flesh”

21st Century Leadership Points to Ponder The age of heroic leadership is over Leaders create ongoing conversations about the future Leaders help people let go of old models that worked in the past for new models that better fit the current environment What’s the sense of urgency? Revolution vs Evolution “Evolution keeps us alive…Revolution keeps us relevant.” How many organizational associates do you think are willing to go on this revolutionary journey with you?

21st Century Leadership Points to Ponder  15% are ready to go and wonder what’s taken you so long to figure it out!  Another 15% are right behind, willing to join in shortly  30% are slightly wary and will look for signs it’s safe  25% are comfortable, skeptical, fearful  15% are dinosaurs with walnut brains and the ice age is upon them! Everett Rodgers, Diffusion of Innovation (2003)

Gaining Commitment to Organizational Transformation Why are we changing? Or, must change? Create ongoing conversations about the future. What does the destination look like? Develop several scenarios for consideration. How will we get there? Is there a roadmap? Roadmaps and measurable milestones. What’s my role? Inclusive participation from constituents.

21st Century Leadership Points to Ponder “Change is hard, it’s hardest on those caught by surprise.” Tom Friedman, The World is Flat How Leaders Reduce the Impact of Surprise:  Inoculation—ongoing discussion about the future  Anticipation (scenarios)--“What if?”  Course Corrections quickly—early warning signs  Inclusive intelligence—every person a sentinel  Change leaders at all levels—broad based coalition

Strategic Thinking Strategic Thinking precedes Strategic Planning  Challenging Core Business Assumptions  Stretching / Merging Boundaries “Our biggest competitor is our own provincial view of ourselves.” What will be different about our organization in the next five years?

Distributed Leadership “Leaders don’t create followers, they create other leaders.”

21st Century Leadership Points to Ponder Distributed leadership vs top down When a team looks to a single person for rescue or guidance…it’s a risky game The heroic leader may only see other leaders around them… the transformational leader seeks out, develops, and rewards leadership at all levels Resiliency and resolve is built deeper into the bench rather than with only a few power hitters Leaders at all levels?

21st Century Leadership Points to Ponder Develop others Developing others pays some of the greatest return on investment over other leadership competencies A “differentiating” competency… developing others acts to grow strength as well as associate confidence in your other leadership competencies  Private sector managers invest 15-20% of their time developing others  U.S. Federal Government managers invest <5%

Distributed Leadership Most of us do a great job distributing leadership to the top 15% of our team.  How might we better distribute leadership to the next 35%  Is there a common energizing vision throughout your team/organization?  2008 Research suggests: Only 30% of our staff fully engaged 19% are actively disengaged 30% are almost fully engaged

21st Century Leadership Points to Ponder Focus on the Vital Few An overly ambitious, busy set of priorities is a rookie mistake Leaders work to whittle down a long list of priorities and initiatives to the “vital few” Maybe a “stop doing” list works here. If you could only work 2 hrs a day in the next three months, on what would you focus?

The New Future: Governance Leadership is not technical competency— yet that’s what many depend on for Governance. The governance model grounded in politics of our associations is a dangerous model for credentialing and regulatory organizations—yet, we are more like that, than we are a corporate governance model.

The Real Work of Governance Leadership  Fiduciary governance ($, quality, integrity) 33%  Policy and Strategy governance (standards/planning) 33%  Generative governance (What If strategic thinking) 33% A “governance leadership” model is driven by a culture of inquiry—focusing as much dialogue on thinking in the “future tense” as possible at every meeting.

Governance Leadership Environmental scanning / tracking Strategic Thinking about transformation Scenario building Strategic Plan Review (5 yr) Innovation / breakthrough discussion Benchmarking innovators Purposeful transparency Board Leadership Succession Organizational leadership succession Inclusive customer input Customer value tracking (not simply satisfaction) Annual self-assessment and development plan

Final Thought from Yogi Berra “When you come to a fork in the road… This conference was about exploring the many forks in the road ahead. Kudos to the STRATEGIC THINKERS who conceived this conference and the other strategic thinkers who presented.

Interesting Books on the Future Leaders of the future are known less by what they control and more by what they shape. James Canton, The Extreme Future (2006) Richard Chait, et. al., Governance As Leadership (2005) Jim Collins, How the Mighty Fall (2009) George Day and Paul Schoemaker, Peripheral Vision (2006) Thomas Friedman, The World is Flat (2005) Rick Levine, et al, The Cluetrain Manifesto (2000) James Martin, The Meaning of the 21 st Century (2006) Mark Penn, Microtrends (2007) J.L. Petersen, Out of the Blue: Wild Cards and Other Big Future Surprises (1997) Peter Schwartz, Inevitable Surprises (2003) Les Wallace & J. Trinka, A Legacy of 21 st Century Leadership (2007)