“THE SILVER BULLET OF LEADERSHIP” OCTOBER, 2004 by Edward D. Hess

1 FACULTY Edward D. Hess Adjunct Professor Of Organization & Management Goizueta Business School Emory University – Atlanta, Georgia Executive Director: Values-Based Leadership Institute Executive Director: Center for Entrepreneurship & Corporate Growth

2 MY CONSULTING CLIENTS 1)The Beach Company, Charleston, SC 2)Hixon Properties, San Antonio, TX 3)Knowledge Analysis Technologies, Boulder, CO 4)Edens and Avant, Columbia, SC 5)Cousins Properties, Atlanta, GA 6)Oncor International, Washington, DC 7)Portman Interests, Atlanta, GA 8)Polar-Bek, Birmingham, AL 9)Senior Managing Director – Jackson Capital, LLC, Atlanta, GA 10)Burroughs & Chapin, Myrtle Beach, SC

3 Leadership Articles in Catalyst Magazine 1)“Managing Execution” January, )“Why Should Anyone Follow You?” June, )“What Do Leaders Actually Do?” September, )“What is the Meaning of Business?” October, )“What Do Leaders Actually Do – Part II?” November, )“Are Your Employees a Means to Your End?” May, )“Managing VUCA” June, 2004

4 Leadership Fellows Agenda Friday, Oct. 15, :00-2:30PMDean Kembrell Jones Introduction 2:30-3:15PMFellows & Coaches Introduction 3:15-3:30PMBreak 3:30-5:30PMProf. Hess “The Silver Bullet” 5:30-6:00PMCoaching 6:00 PMDinner Saturday, Oct. 16, :30-10:30AMProf. Drazin and Prof. Glynn “Tasks/Reflective Writing” 10:30-10:45PMBreak 10:45-12:45PMProf. Hess “The Silver Bullet” 12:45-2:00PMLunch 2:00-3:00PMAndy Fleming “Values Assessment 3:00-3:30PMCoaching Q&A Next Session Conclusion

5 Introduction 1)What is leadership? 2)What are the necessities to lead? 3)What are the key Leadership models? 4)Why is trust so important? 5)Do you have the right stuff? 6)What skills are critical? 7)Can you learn Leadership? 8)What are the three components of the High Performance Profit Maximization Model?

6 HPP Maximization Model a)You b) Employees c) Customers

7 What is Leadership? 1.Please write out your definition: ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________

8 There are over 200 definitions of Leadership. Major Leadership Models: 1)Great person model – traits or personality 2)Situational – Context – Circumstances 3)Level V Leadership 4)Transformational Leadership 5)Servant Leadership 6)Authentic Leadership

9 All Leadership models require: 1)A Leader 2)Followers 3)Goal(s) or Objective(s) Some require a good, responsible, or moral objective.

10 Leaders must have: 1)Technical competence 2)Communication skills 3)Management skills Is that enough?

11 What is the most important aspect needed for you to follow and believe in a leader? ________________________________ ________________________________ ________________________________ ________________________________ ________________________________

12 Why is TRUST so important? Trust to do what? The essence of trust is that followers believe you will do what is right – in their best interest - not just what is in your best interest.

13 What is trust? How do you create trust? How do you earn trust? Who do you trust? _______________________ _______________________ _______________________

14 Why do you trust them? _______________________ _______________________ _______________________ How did they earn your trust? _______________________ _______________________ _______________________

15 David Gergen The heart and soul of Leadership is the relationship of the follower and Leader. Trust is key. How do you earn trust? 5 Cs: Candor Competence Consistency Compassion (empathy) Character

16 And according to Gergen, character is key. What is Character? ____________________________________

17 What is your character?

18 Leadership Size Gender Nationality Charisma Where you went to school Pedigree Your religion DO NOT PRECLUDE YOU LEARNING TO BE A LEADER

19 What matters is what is in your heart. Your character Your values Your attitudes And How you act and express that.

20 Why should anyone follow you? Right attitude Right motivation Right values Emotional Intelligence Unless you understand yourself and your emotions, you cannot understand other people and lead them.

21 The right stuff is within you – Deal with you Be self-aware Be sensitive Be disciplined

22 Great Athletes Musicians Singers All have one thing in common:Ratio PracticePerformance

23 Tough part of the business world is a leader has to perform all day, every day! On stage! Showtime!

24 Can you learn to be a good leader? YES! My Story Age 34 – 44Driven Impatient Results Oriented Help get job done 2 personal crises Age 44-47More self-aware Death of my father Age 47-57Changed my focus Significance, not success Truly listened

25 Learning to be a Good Leader is a life-long pursuit. You will get better as you: 1)Experience life; 2)Lead and learn; 3)Become emotionally more aware and secure; 4)Learn not to focus on “me”; and 5)Truly adopt a servant leadership approach.

26 What precludes you from being a good leader? Laziness Arrogance Lack of self-discipline Bad attitude

27 How does this trust translate into business success? Profits? Leaderemployeescustomers $ Number one determinant of employee job satisfaction and job performance is you – the Leader. What do your employees think about you? How do they view you? Do they trust you?

28 Happy, productive employees create happier, more loyal customers and that is the essence of making $ $ $ $. So what makes employees happy? Satisfied? $ $ $ $ is NOT enough. Money is NOT enough.

29 Employees want: 1)Respect 2)Meaning 3)Opportunity 4)Fairness

30 Leadership is a constant battle between: Selfishness (“me”)v.Altruism Self-absorptionv.Emotional maturity Insensitivityv.Sensitivity Lazinessv.Discipline Insecurityv.Confidence Arrogancev.Humbleness Charismav.Authenticity My Wayv.Accepting Other Ways Group Thinkv.Intellectual Honesty

31 Leadership is all about YOU and how you relate to your followers. Relationships are hard work.

32 Let’s Focus on You! Why do you want to lead? _________________________________ More $$$$$? More power? More respect? More perks?

33 Honestly… _________________________________ Most people are promoted to a leadership position not because they are a good Leader, but because they did their job well.

34 And most people then try to get their employees to do and act like they did – this is what they know. “This is what worked for you?”

35 Leadership is different than doing a job well; Leadership is motivating, inspiring, and leading others to accomplish certain goals.

36 Inspiring and leading others to accomplish certain goals: Efficiently & Excellently & On time & On budget

37 Who are your followers? Why are they important to you? _______________________________________

38 Because they help you meet your budget, your goals, your objectives, your bonus! Why should they care about you? Why should they care about your bonus?

39 What I am trying to do is: 1)Change your attitude about Leadership; 2)Change your frame of reference and mindset; 3)Change your behavior

40 I know change is hard. I know people are creatures of habit. But I know you are here for a reason. To be all you can be and you can only be all you can be through others.

41 And Guess What?

42 LEADERSHIP IS NOT ABOUT YOU! LEADERSHIP IS ABOUT THEM!

43 LEADERSHIP IS NOT ABOUT WHAT IS IN IT FOR YOU! LEADERSHIP IS ABOUT HOW YOU CAN HELP THEM!

44 LEADERSHIP IS NOT THE END RESULT… IT IS THE MEANS TO AN END! LEADERSHIP IS ABOUT HOW YOU IMPACT OR AFFECT YOUR FOLLOWERS.

45 I submit that you will never, never, achieve your leadership potential until you: 1)Get the right attitude; 2)Get the right mindset; and 3)Adopt a servant leadership mentality.

46 Change the focus from ME to THEM. Great Leaders help people be all they can be! Great Leaders help people reach their potential.

47 What is Leadership? A Relationship between a Follower and a Leader “Oh, darn…here we go.”

48 To have a great relationship – Friendship Love Leader What do you need? _________________________________

49 Respect Openness Honesty Authenticity Communication Listening skills Openness to learn and adjust

50 Each employee is a separate relationship. Each employee is an individual – unique – distinct.

51 Leadership is not having 1 way of dealing with your followers. Leadership is not having a rehearsed way of acting.

52 To be a good Leader, you MUST understand and learn how each employee thinks, learns, and what motivates them. Managing people is an individual game!

53 Leadership is having the ability to: LISTEN PERCEIVE UNDERSTAND MOTIVATE INSPIRE People are a complex gumbo of hopes, dreams, fears, and emotional baggage.

54 Time Out: What have you learned so far? 5 or 6 key points: 1.__________________________ 2.__________________________ 3.__________________________ 4.__________________________ 5.__________________________ 6.__________________________

55 What is the most surprising thing you have learned? _________________________________

56 What has shocked you or given you concern about yourself? Your assumptions about leadership? _________________________________

57 Why do you want to be a good Leader? (Refer back to your prior answer.) Why? _________________________________ Why not? _________________________________ Are you happy with your reasons?

58 What do you need to change about your attitude – mind frame – or concept of Leadership? _________________________________ _________________________________

59 Who is the best boss you have ever had? _________________________________________ Why? __________________________________________________________________

60 Who is the worst boss you have ever had? _________________________________________ Why? __________________________________________________________________

61 How are you like the best boss? ______________________________________ ______________________________________ ______________________________________ ______________________________________ How are you like the worst boss? ______________________________________ ______________________________________ ______________________________________ ______________________________________

62 How can you change or improve? ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________

63 What are your core values? Please define them:

64

65 Emotional Intelligence Why is this emotional and character stuff so important? What’s in your head and in your heart?

66 Because how you act – what you do and how you do it has amazing impact on your followers.

67 Every act and gesture is noticed and critiqued. Sensitize You! Make You Aware! You Are On Stage!

68 Understand that your employees are looking at you all the time for Leadership. Each day is Showtime. Each meeting is Showtime.

69 For Consistency For Fairness For Candor For Trust

70 Think about it – In the last couple of months: Think about great days at work or school What made them great? ______________________________________

71 Think about bad days at work or school What made them bad? ______________________________________

72 What was the role of your leader in the good days? What, specifically, did he or she do? ______________________________________

73 What was the role of your leader in the bad days? What, specifically, did he or she do? ______________________________________

74 Great Leaders have a Sixth Sense: They can feel the emotions of a situation.

75 They can perceive when they are NOT communicating. They can perceive distrust, hostility, anger that is masked by smiles!

76 Great Leaders can PERCEIVE RECEIVE The “What is not said” The “dynamics underlying the meeting” Where people are coming from

77 In order to have this Sixth Sense You need EMOTIONAL INTELLIGENCE

78 EMOTIONAL INTELLIGENCE IS KEY

79 Recall - To be a great Leader, you need: 1)Technical competence 2)Right attitude or mindset 3)Values – character 4)Emotional intelligence

80 What is emotional intelligence (“EI”)? Jack Mayer, Professor at the University of New Hampshire, one of the fathers of EI; HBR Jan 2004, p28

81 “EI is the ability to accurately PERCEIVE your own and others’ emotions.” What does this mean to you? ____________________________________

82 “EI is the ability to understand the signals that emotions send about relationships; and the ability to manage your own and others’ emotions.”

83 WOW!! Does that mean we all need to be shrinks? Are good Leaders “amateur” psychologists?

84 No - What it means is that good Leaders: 1)Understand themselves, their biases, their emotions, how their emotions impact them – their insecurities – what they get defensive about.

85 What are your biases?

86 What are your fears?

87 What are you insecure about?

88 When or in what situations are you likely to be defensive?

89 2)Good Leaders are able to perceive, receive, and understand emotional signals. “Sixth Sense”

90 How do you get in touch with your feelings?

91 What are you really in touch with?

92 What do you feel?

93 3)Good Leaders manage the emotional climate of their group.

94 Primal Leadership by Daniel Goldman, et al ISBN X P10 – Yale Study “Moods influence how effectively people work.” “Upbeat moods boost cooperation, fairness,and business performance.”

95 Sensitize yourself to the impact of your MOODS. Facial expressions Choice of words Gestures Body Language

96 Before you can manage others: You have to manage yourself.

97 Reality Check: How many of you are thinking: 1)Employees are naturally lazy and need me to push them? Yes or No

98 3)To be a great Leader, my employees must fear me. Yes or No 2)Unless I am tough, employees will take advantage of me. Yes or No

99 5)What about General Patton, Jack Welch, Richard Nixon? 4)All this psychology stuff is too mushy-squishy. Yes or No

100 1)Being emotionally intelligent does not mean you do not honestly and fairly hold people accountable. My answers to you:

101 Reactions by gender: MEN Leaders: Generally NOT good at emotional intelligence WOMEN Leaders: Generally NOT good at holding people accountable

102 P14Primal Leadership The percentage of time people feel positive emotions at work turns out to be one of the strongest products of job satisfaction. Leader employees

103 For every 1% improvement in service climate 2% increase in revenue. Leader employees$

104 When service people feel upbeat they do more to please customers. Leaders create the right emotional climate!

105 p17-18 Climate – how people feel about working at a company – can account for 20-30% of business performance.

106 What was the best job you ever had?

107 Describe the climate.

108 What was the worst job you ever had?

109 Describe the climate.

110 If climateresults, what drives climate?

% of how employees perceive their organization’s climate can be traced to the actions of 1 person: The Leader

112 You are more responsible for the success of your team than your employees. YOU!

113 So you have to focus on creating the right climate – on creating the right environment - for people to want to excel and to be able to excel.

114 The Magic Formula Leader$ employeecustomer

115 The Magic Formula AGAIN Leader$ employee customersatisfaction

116 AGAIN IT IS YOU!!! The responsibility of Leadership is creating the right environment – climate – atmosphere for Excellence

117 You cannot create the right environment unless there is Harmony Congruence Authenticity

118 Amongst your Beliefs Motivations Values and Actions Can’t fake it!!

119 It is what’s inside of you that counts. Some of you are now thinking: “Holy crap – I do not have the right stuff.”

120 Can I learn to do this? Yes YES YES Hard, hard work Daily work Sensitivity

121 What are the keys to EI?

122 My Top 5 1.Emotional Self-Awareness and Realistic Self-Knowledge My Grade A.Understanding one’s emotions. B.Recognizing the impact. C.Managing your emotions D.Being realistic about your strengths and weaknesses

123 2.Empathy My Grade A.Sensing others’ emotions B.Understanding others’ perspectives C.Having an honest respect for differences and diversity D.Putting yourself in their shoes

124 3.Flexibility My Grade A.Being open to receive feedback B.Reacting in an individualized manner C.Adjusting and adapting to the situation – context - individual D.Collaborate, not dictate

Being Transparent My Grade A.Having the self- confidence to be honest and direct B.“Walk the Walk” – not just talk C.Harmony and consistency between what you believe, say, and do

Having a service mentality My Grade A.Your role is to serve B.“How may I help you?” C.Help others develop and be all they can be D.Be a mentor, coach, and teacher

127 SUMMARY EIMY GRADE360 0 Self-Awareness Empathy Flexibility Transparency Service Mentality

o Feedback 1)Ask your spouse or someone especially close to you to grade you honestly 2)Ask 3 close friends to grade you honestly 3)Ask 3 workmates whom you trust to grade you honestly

129 What are your discrepancies? ____________________________________

130 Gaps??? In what you think and what others think ____________________________________

131 Now – what do you do? ____________________________________

132 1)Focus on each Gap 2)Think about how you would like to act 3)Focus on behavior changes!!!

133 DRILL DOWN TO BEHAVIORS!!!

134 YOU CANNOT BE BETTER UNLESS YOU CHANGE BEHAVIORS!!! Wanting is not doing. Good intent is not good enough Change your behavior

135 Common Problems 1)Thinking of your response while someone is talking 2)Interrupting people who are talking 3)Being defensive 4)Being afraid of hurting people’s feelings by being honest 5)Dismissing the importance of daily self-reflection

136 Common Problems 6)Not understanding your learning loop is a Daily & Lifetime Process 7)Laziness 8)Letting your mistakes overwhelm you 9)Being afraid to admit your mistakes and say “I’m sorry.” 10)Arrogance

137 BEING A LEADER IS A JOURNEY YOU Can Always Be Better!

138 My Leader Learning Plan I want to work on the following 3 behaviors: 1)_____________________________ 2)_____________________________ 3)_____________________________

139 Behavior #1: ________________________ Now what specific behaviors do I want to change – What will I do differently? 1)_____________________________ 2)_____________________________ 3)_____________________________

140 Now, for each behavior: Sit, close your eyes, and visualize doing the new behavior with 3 different people. “Mental Rehearsal”

141 Behavior #2: ________________________ Behavior Changes: 1)_____________________________ 2)_____________________________ 3)_____________________________

142 Behavior #3: ________________________ Behavior Changes: 1)_____________________________ 2)_____________________________ 3)_____________________________

143 What is the opposite of Mental Rehearsal?

144 Mental Replay What is it? How do you do it?

145 First, Break All The Rules by Buckingham & Coffman, ISBN

146 Questions? The key now is to figure out how yesterday’s focus on YOU - Your attitude Your behavior Your values Your EI

147 Relates to Best Practices of Managing Yesterday Inside of You Today Outside of You What do great managers actually do!

148 Gallup Leadership did interviews with over 80,000 high performance managers (all levels) over 25 years of research

149 Gallup found out the same conclusions that the Primal Leadership Team at Case Western discovered

150 That is: Leader$ employee customersatisfaction

151 p21 “In their book, The Service Profit Chain, James Heskett, W. Earl Sussa, and Leonard Schlessiger make the case that no matter what your business, the only way to generate enduring profits is to begin by building the kind of environment that attracts, focuses on, and keeps talented employees.”

152 p16 “Michael: A manager has got to remember that he is on stage every day. His people are watching him. Everything he does, everything he says, and the way he says it, send off clues to his employees. These clues affect performance. So never forget you are on stage.”

153 What do employees want from you?? What is important to them? Pay? Benefits? More money? No, No, No

154 What is important to employees? 1)Do I know what is expected of me? 2)Do I have the materials and equipment to do the job?

155 3)At work, do I have the opportunity to do what I do best? 4)Does my boss care about me as a person?

156 5)Does my boss encourage my development? 6)Do my opinions count?

157 7)Does the mission/purpose of my company make me feel my job is important? 8)Am I graded and given feedback and the opportunity to learn and grow?

158 Does he or she – do YOU: 1)Care about your people? 2)Encourage their development? 3)Listen and respect their input? 4)Make work meaningful? 5)Give feedback and opportunity to learn and grow? BINGO!

159 The manager – direct supervisor – boss…. NOT Pay NOT Benefits NOT Perks NOT a Charismatic Corporate Leader …was the critical player in determining performance.

160 Good managersretain good employees Good managersreceive high performance Good managersmake high profits

161 The focus of great managers: 1)Set consistent expectations for all your people while treating each as an individual. 2)Make each person feel he is in a role that uses his talents while challenging him or her to grow. 3)You have to care about each person, praise each person, and if necessary, terminate a person you have cared about and praised.

162 The Keys: 1)Treat each as an individual? How do you do that? 2)Know their strengths and help them grow. How do you do that? 3)Care about each person. How do you do that?

163 This Leadership stuff is 1-to-1 personal interaction

164 This Leadership stuff is personal involvement

165 Leadership is the active, emotional engagement with people

166 Caring – Developing Others 1)How have I communicated or acted in a caring manner? 2)Do I have a personal development plan for each person? 3)Do I attempt to make people be like me?

167 Gallup Book Says: 1997 – 600 books published on Leadership and Management Last 20 years – 9,000 systems, paradigms, principles of how to manage NO, NO, NO

168 Research shows it all comes down to how you relate to people. 1)Individualization 2)Caring 3)Managing their development

169 Gallup also found: 1)Great managers know each individual is different – each has their own way of thinking and relating. 2)Each individual has different motivation “buttons.”

170 Let’s stop and think about what you do! Grade yourself! Individualization: Do I know each of my direct reports as individuals?

171 Do I know what their goals, dreams, hopes are? Do I know their strengths and weaknesses? Do I know what is important to them?

172 Do I know their individual way of thinking and communicating? Do I know their concerns, fears,etc? Do I know where “they came from”?

173 Do I understand the meaning of “the right fit” for a person? Do I focus on their strengths or their weaknesses? Do I tell them how to do the job? Or, do I tell them the expected results? Do I understand why he or she gets out of bed each morning?

174 Great Managers 1)Focus on each person’s strengths and manage around weaknesses 2)Don’t try to fix weaknesses 3)Help each person cultivate his or her talent 4)Help each person become more of who he or she already is 5)Manage by exception

175 Great Managers 6)Measure the right things 7)Reward what you measure 8)Accountability – Feedback – Opportunity to Improve 9)Create heroes at every level; Not everyone can move up.

176 People open up and talk IF And ONLY IF They believe you have their best interests at heart

177 IF And ONLY IF They trust you How do you get people to open up?

178 Talk about your goals, hopes, and dreams. Sidney Jourard The Transparent Self Open up and be honest yourself. Talk about why this work/job is meaningful to you.

179 Apologize when you are wrong and hurt someone. Be human – admit mistakes – be authentic.

180 It’s okay to say, “I don’t know but I will get you the answer.” Do not be defensive. Be sensitive, caring.

181 Tell them what you value - Honesty Integrity The Truth 110% Effort Diversity of Opinion

182 Managing and Leading Is about People Their Hopes Their Dreams Their Fears Meaning -

183 W.C.H. Prentice: HBR Jan 04, p104 When the leader succeeds, it will be because he has learned 2 basic lessons: 1) People are complex 2) People are different Leaders must respond to and create intrinsic interests in work.

184 Enjoy Your Journey! Godspeed! Leader$ employee customersatisfaction