Level Three Leadership

Level Three Leadership
Jim Clawson Darden Graduate School of Business University of Virginia

What are the biggest challenges you face today?
© James G. Clawson

Levels of … CHALLENGES & LEADING
SOCIETAL ORGANIZATIONAL WORK GROUP INDIVIDUAL © James G. Clawson

People learn best and most deeply when …
They try to answer questions or solve problems they find interesting, intriguing, important, or beautiful; They can try, fail, receive feedback, and try again before anyone makes a judgment of their work; They can work collaboratively with other learners struggling with the same problems; They face repeated challenges to their existing fundamental paradigms; They care that their existing paradigms do not work; They can get support (emotional, physical, and intellectual) when they need it; They feel in control of their own learning, not manipulated; They believe that their work will be considered fairly and honestly; They believe that their work will matter; They believe that intelligence and abilities are expandable, that if they work hard, they will get better at it; They believe other people have faith in their ability to learn; They believe that they can learn. Source: The Research Academy for University Learning at Montclair State University – Montclair, New Jersey Developed by James Clawson

Leadership means … LEADing STRATEGic CHANGE © James G. Clawson

Key Leadership Initiatives
Developing Influence Strategic Thinking Designing Organizations OTHERS RELATIONSHIPS STRATEGY ORGANI- ZATION Creating Quality HR bonds Managing Change © James G. Clawson

Key Leadership Questions
1. Who are you? 3. Can you “sell” your story? 2. What’s Your “story?” LEADER (traits) Developing Influence Strategic Thinking Designing Organizations OTHERS (employees) STRATEGY (priorities) ORGANI- ZATION (design) 4. Does your organization help or hinder? 5. Can you lead change to keep up? © James G. Clawson

Elements in Effective Leadership: Who are You? Creating Self Awareness
ENVIRONMENT SELF OTHERS TASK RESULTS Balanced Scorecard Financial Customer Operations Learning & Growth ORGANIZATION © James G. Clawson

Does experience lead to wisdom?
“Most people do not accumulate a body of experience. Most people go through life under-going a series of happenings which pass through their systems undigested. Happenings become experiences when they are digested, when they are reflected on, related to general patterns, and synthesized.” Saul Alinsky, Rules for Radicals, quoted by Henry Mintzberg in “The Five Minds of a Manager” HBR 11/03

Levels of Human Activity
HABITUAL? 1. Visible Behavior 75% 2. Conscious Thought 85% 3. VABEs (values, assumptions, beliefs, and expectations) 95+% © James G. Clawson

Leadership is not about title. What’s your (habitual) Point of View?
POV Things they say… Follower’s Point of View? Bureaucratic Point of View? Leader’s Point of View? _______________________________________________________________ ______________________________________________________________________________________________________________________________ Your point of view doesn’t depend on your title… © James G. Clawson

The Leadership Point of View
Do you SEE what needs to be done? Do you UNDERSTAND ALL of the forces at play? Do you have the COURAGE TO ACT to make things better? © James G. Clawson

The Formative Years … GENES ADD ADHD BPD OCD Etc. Transcender? K, L, A
VABEs MEMES Locus of Control EX IN GENES ADD ADHD BPD OCD Etc. Generation to Generation Two key legacies Key Questions When I’m cold… When I’m hungry… When I’m wet… When I’m alone and afraid… Newborn Choice Theory (Glasser) IKWRFY IHARTTYWRFY IHARTPYIYDDWRFY © James G. Clawson

The Number One Question in Life
Will you ever be anything more than a vessel transmitting the genes and memes (VABEs) of previous generations on to the next? When you’re no longer a defenseless child, will you become a transcender? © James G. Clawson

VABE based Behavior: The missing variable
L3: VABEs EVENTS L2: CONCLUSIONS L1: BEHAVIOR FEELINGS © James G. Clawson

Beware your Blind Spots! Enhancing Self Awareness
OTHERS SEE NOT SEE SEE NOT SEE PUBLIC PRIVATE SELF BLIND SPOTS © James G. Clawson

A Personal Developmental Balance Wheel
Social 10 Physical 8 Parental Intellectual 6 World Class 4 Marital 2 Spiritual Familial Material Professional Political Emotional Financial © James G. Clawson

A Personal Developmental Balance Wheel
Social Physical Parental Intellectual Marital Spiritual 2 Familial Material 4 6 8 Professional Political 10 Emotional Financial © James G. Clawson

The dangerous “outside-in” nature of corporate goals.
100% Assertiveness 50% INSIDE FEAR OF REJECTION 0% © James G. Clawson

Are you leading your own life or living outside-in?
4/20/2017 Are you leading your own life or living outside-in? Summer 2009 21 © James G. Clawson

Is leading self about managing time?
© James G. Clawson

Leadership is about managing energy, first in yourself and then in others.
© James G. Clawson

What happens when one crosses the divide between choice and obligation?
Energy? Productivity? Creativity? Innovation Engagement? Commitment? Buy-In? CHOICE OBLIGATION © James G. Clawson

The obligatory commute …
© James G. Clawson

Managing Energy Energizers Drainers © James G. Clawson

How do you want to feel? © James G. Clawson

FLOW Time warps (slow or fast) Lose sense of self Intense focus
Perform at highest level Seems effortless (flow) Internally satisfying Regain larger sense of self Adapted from FLOW by Mihalyi Csikszentmihalyi © James G. Clawson

Does how you feel affect your performance?
How many times have you been asked by supervision at work how you want to feel? How do you WANT to feel? The pervasive management assumption: PWD WTHTD ROHTF This is a formula for mediocrity. © James G. Clawson

NEWBURG’S CAREER SAMPLES
World Class Athletes Touring Musicians Heart Surgeons Extraordinary Executives Warriors/Naval Aviators 550 World Class Performers © James G. Clawson

The Resonance Model dream revisit your dream preparation obstacles
Doug Newburg, PhD © James G. Clawson

Examples of Feel … Easy speed (Jeff Rouse)
Playing to win at the highest level (Dawn Staley) Out of my chest Being at one with my surroundings Peaceful, satisfied, alive Buoyant, connected mastery Light, unhurried, and engaged. © James G. Clawson

Focusing on Feel to Perform Dave Scott 49, Six-time Ironman Hawaii Champion
“During a race, I never wear a wristwatch, and my bike doesn’t have a speedometer. They’re distractions. All I work on is finding a rhythm that feels strong and sticking to it.” ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Outside, 9/03, p. 122 © James G. Clawson

Be careful of the “achievement orientation”
Other dangers of the achievement orientation: Winning at any cost Making the numbers is #1 Emerging hollowness Character and ethical implications Energy © James G. Clawson

What’s the difference between “work” and a “job?”
“I stopped loving golf at exactly the time I decided to turn pro.” - Tom Weiskopf , Golf, July 2004, p. 133 People pay me a lot of money to go away from my family, stay in cheap motels, ride on the bus all night, and eat rubber chicken. But when the curtain goes up and the light on the camera goes on, THAT I do for free. - Grammy winning musician © James G. Clawson

Typical Reaction to Obstacles: Getting stuck in the “Duty” Cycle
dream preparation “Stuck in the Have-to Duty Cycle” s obstacles s © James G. Clawson

“afterward, you want to do it again.”
What is “success?” Money? Fame? Power? “afterward, you want to do it again.” © James G. Clawson

How do you approach your work?
dream revisit your dream Preparation/work obligation © James G. Clawson

Resonance is a question of harmony between inside and outside
“I think that what we’re seeking is an experience of being alive, so that our life experiences on the purely physical plane will have resonance with our innermost being and reality, so that we actually feel the rapture of being alive.” - Joseph Campbell, The Power of Myth, 1988 © James G. Clawson

The Pursuit of Excellence
"Excellence is attained by those who care more than others think is wise, who risk more than others think is safe, who dream more than others think is practical.“ Bud Greenspan © James G. Clawson

5. What are you willing to work for?
Five Key Questions 5. What are you willing to work for? 1. How do I want to feel today? 4. How can I get it back? 2. What does it take to get that feeling? RESONANCE 3. What keeps me from that feeling? © James G. Clawson

Invest in Your Resonance Enjoy Your Resonance
THE PURPOSE OF LIFE Find Your Resonance Invest in Your Resonance Enjoy Your Resonance Help Others Find Their Resonance © James G. Clawson

more on the FEEL PERFORMANCE relationship …
4/20/2017 If you want more on the FEEL PERFORMANCE relationship … © James G. Clawson

Elements in Effective Leadership:
Strategic Thinking, Creating Your Story ENVIRONMENT SELF OTHERS TASK RESULTS Balanced Scorecard Financial Customer Operations Learning & growth ORGANIZATION © James G. Clawson

Defining Growth Trajectories
New Response Quantum Leap NEEDS A B $XB Global Push Past Existing Your Share Existing New CUSTOMERS Charan and Tichy © James G. Clawson

Porter’s Five Forces Model
NEW ENTRANTS INDUSTRY COMPETITORS SUPPLIERS BUYERS SUBSTITUTES © James G. Clawson

GENERAL VALUE CHAIN Raw Transport Materials Processing Forming
Assembly What’s your value chain? What are the margins in each link? Where are your competitive strengths? Where is your strategic intent? Distribution Sales Service © James G. Clawson

Balanced Scorecard Profitability (FINANCES)
Customer Satisfaction (MARKETING) Core Capabilities to Deliver Satisfaction (OPERATIONS) Intangible Assets to Build Capabilities (HC, SC, OC) © James G. Clawson

The Balanced Scorecard Framework
FINANCIAL PERSPECTIVE Productivity Revenue Growth Long Term Shareholder Value CUSTOMER PERSPECTIVE Price Quality Time Function Partnership Brand Image Relationship Product/Service Attributes INTERNAL PROCESS PERSPECTIVE Manage Operations Customers Manage Regulatory & Social Processes Manage Innovation LEARNING AND GROWTH PERSPECTIVE Human Capital Social Capital Organization and IT Capital + © James G. Clawson Adapted from Strategy Maps, Kaplan & Norton, HBSP, 2004

Problems: The Source of Change
“…the starting point of any effective change effort is a clearly defined business problem.” Beer, Eisenstadt, Spector—Why change programs don’t produce change. HBR What problems do you SEE? What kind of problem is strong enough to motivate you to initiate change? © James G. Clawson

The Structure of Problems: Want-Got Gaps
4/20/2017 The Structure of Problems: Want-Got Gaps 1. Stakeholder 2. WANT 3. GOT Gap? © James G. Clawson

The Problem with Problem Solving: OSCILLATION
Recognizing the problem leads to action to solve the problem  Leads to less intensity of the problem  Leads to less action to solve the problem  Leads to the problem remaining False sense of security: you know just what you are supposed to do: find and solve problems. If you didn’t have problems, what would you think about? How would you spend your time? What drives the action is the intensity of the problem  REACTIVE OSCILLATION. © James G. Clawson

Structural Conflict leads to Oscillation
TENSION RESOLUTION Hunger Eat Overweight Diet © James G. Clawson

Oscillation drains energy
4/20/2017 Oscillation drains energy Decentralize Geography Organization Contract Organic Sales Stick to Knitting Centralize Customer Organization Grow Acquire Diversify © James G. Clawson

“Problems” are Insolvable
“All of the greatest and most important problems of life are fundamentally insoluble…they can never be solved, but only outgrown. This “out growth” proved on further investigation to require a new level of consciousness. One higher or wider interest appeared on the patient’s horizon, and through this broadening of his or her outlook, the insoluble problem lost its urgency. It was not solved logically in its own terms, but faded when confronted with a new and stronger life urge.” -- Carl Jung © James G. Clawson

The Path of Least Resistance
Robert Fritz 1984, 1989 Random House © James G. Clawson

Fritz’s Alternative: Orient to the Creative Process
Describe accurately where you are (Collins’ “confront the brutal facts”) Make a vision of what you want to create with your life/work. Make sure it’s something you want so bad, you are magnetically attracted to it. Formally choose the result you want. Move on (if you really want it, you will naturally ‘flow’ in that direction.) What do you want to create? © James G. Clawson

Elements in Effective Leadership: Selling Your Story
ENVIRONMENT SELF RESULTS Balanced Scorecard Financial Customer Operations Learning & growth OTHERS TASK ORGANIZATION © James G. Clawson

Levels of BUY-IN Passion (“What you ask is the #1 thing in my life.”)
Engagement (“I want to do what you ask.”) Agreement (“I will do what you ask.”) Compliance (“Okay” but where are the loopholes?) Apathy (“I just don’t care.”) Passive Resistance (“Oops.”) Active Resistance (“No way in hell.”) © James G. Clawson

VISIBLE BEHAVIOR CONSCIOUS THOUGHT
Levels of Influence VISIBLE BEHAVIOR CONSCIOUS THOUGHT VABEs (Values Assumptions Beliefs and Expectations about the way the world is or should be) © James G. Clawson

Level One Techniques Force Intimidation Coercion Manipulation Deceit
Incentives Rewards Punishments 61 © James G. Clawson

“The more significant problem is precisely that the effects of rewards do last, but these effects are the opposite of what we were hoping to produce. What rewards do, and what they do with devastating effectiveness, is smother people’s enthusiasm for activities they might otherwise enjoy.” Alfie Kohn, Punished by Rewards, p. 74 © James G. Clawson

Level Two Techniques Data Logic Analysis Reason Evidence Charts
Printouts Quoting gurus 63 © James G. Clawson

Level Three Techniques
Vision Inclusion Stories/Anecdotes Music Honesty Authenticity Caring 64 © James G. Clawson

Leadership Technique and Consequence
BUY-IN Passion Engagement Agreement Compliance Apathy Passive Resistance Active Resistance Level One Techniques: Pay, rewards, punishments, threats, coercion, intimidation Level Two Techniques: logic, data, evidence, reason, statistics, charts, analysis Level Three Techniques: vision, purpose, values, stories, music, symbols, strategy, TPOV © James G. Clawson

The Language of Leadership: tiny tips
Replace your “buts” with “ands.” Speak in the first, not second, person. Don’t disguise your opinions as questions. (creates defensiveness) Make invitations rather than giving orders. (allows choice) Pay attention to the “buy-in” level below the surface. … © James G. Clawson

Elements in Effective Leadership: Designing Effective Organizations
ENVIRONMENT SELF OTHERS TASK RESULTS Balanced Scorecard Financial Customer Operations Learning & Growth ORGANIZATION © James G. Clawson

Leaders have only an Indirect Influence on Outcomes
Back- ground Factors Leader- ship VABEs DESIGN DECISIONS CULTURE Design + People Results Financials Customers Efficiency Learning © James G. Clawson

CULTURE EATS STRATEGY FOR BREAKFAST!
© James G. Clawson

Elements in Effective Leadership: Leading Change
ENVIRONMENT SELF OTHERS TASK RESULTS Balanced Scorecard Financial Customer Operations Learning & Growth ORGANIZATION LEADING CHANGE © James G. Clawson

We live in a world of dramatic and on-going change…
© James G. Clawson

“Ten short years.... the one thing that we have done consistently is to change .... It may seem easier for our life to remain constant, but change, really, is the only constant. We cannot stop it and we cannot escape it. We can let it destroy us or we can embrace it. We must embrace it.” Michael Eisner Disney 1994 Annual Report © James G. Clawson

Population Growth Bio & Energy Revolution? Medical & Information
World Population in Billions 500 400 300 200 100 A.D. 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 1950 2000 Bio & Energy Revolution? 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Medical & Information Revolution Industrial Revolution The Plague Source: US Census Bureau, Population Reference Bureau, adapted from Breathing Space, by Jeff Davidson © James G. Clawson

What will it take to deal with / lead in turbulent times like these?
© James G. Clawson

Can you change anything in the world “out there” without changing yourself first?
Society Organization Team Self © James G. Clawson

Change and Learning In a world of change, learners will inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists. Eric Hoffer, Ordeal of Change © James G. Clawson

Models of Change Kurt Lewin Michael Beer John Kotter Tim Gallwey
(L3L 4e, Ch. 24, p. 339) Kurt Lewin Michael Beer John Kotter Tim Gallwey MIT Model Elizabeth Kubler-Ross James O. Prochaska Peter Senge Jim Clawson (+16) © James G. Clawson

Beer’s Leading Change Cp = D x M x P > C Cp = Probability of Change
D = Dissatisfaction with Status Quo M = Clear Model or Vision of the Future P = Clear Process for Managing the Change C = Cost of Making the Change from Leading Change, Michael Beer, HCS © James G. Clawson

Kotter’s 8 Errors in Leading Change
Allowing complacency Failing to create a guiding coalition Underestimating the power of vision Under-communicating the vision by 10, 100, or 1000 Allowing Obstacles to block the vision Failing to create short-term wins Declaring victory too soon Neglecting to anchor changes in culture From Leading Change, John Kotter, HBS Press, 1996. © James G. Clawson

Kotter’s Eight Stage Process for Creating Transformation
Establish a sense of urgency Create a guiding coalition Develop strong vision and strategy Over communicate the vision and strategy Redesign to encourage broad-based action Generate short-term wins Consolidate gains in redesign and HR Anchor changes in the culture Adapted from Leading Change, John Kotter, HBS Press, 1996 © James G. Clawson

Inner Game of Change Select the right measures
Self 1 (Shoulds) and Self 2 (Inner Self) Select the right measures Focus attention and see what happens Listen to Self 2 Adapted from Tim Gallwey, Inner Game of Work © James G. Clawson

Nevis’ MIT Phases of Change
Complacency/ Turbulence / Resistance / Small Wins / Consolidation / New Baseline © James G. Clawson

Susan Campbell’s Stages of Change
Feeling Unsettled: Something isn’t right. Denial: It’s not that bad. Facing the Present: I see things as they are. Letting Go: The past isn’t working; the future is unclear. Envisioning: I know what I want. Exploring new Options: Maybe I can do it. Committing to Action: I can do it. Integrating the Change: I am doing it. Adapted from From Chaos to Confidence, Susan Campbell, Simon & Schuster, New York, 1995 © James G. Clawson

Emotional Pendulum of Change
Change as Dying a Little Death Elizabeth Kuebler-Ross Emotional Pendulum of Change Disconfirming Data DENIAL © James G. Clawson

Denying the Relevance of the Message
the Messenger DENIAL Denying One’s Ability to Do Anything Denying the Relevance of the Message © James G. Clawson

Emotional Pendulum of Change
Disconfirming Data DENIAL ANGER BARGAINING DESPAIR EXPERIMENTATION HOPE INTEGRATION © James G. Clawson

Prochaska’s Spiral of Change
Stage Key Activity Pre-Contemplation Unaware of the problem much less the solution Contemplation I want to stop feeling/doing this. Preparation I will do something very soon. Action I am doing something about this. Maintenance Careful attention to maintaining the change and not recycling Termination Temptation and threat have disappeared. © James G. Clawson

Prochaska’s Spiral of Change
Recycling is likely for as many as 85%. 6. Termination 5. MAINTENANCE 4. ACTION 3. Preparation 2. Contemplation 1. Pre-Contemplation © James G. Clawson

Senge’s Model of Change
Most Change Agents Stay BELOW the Line FUTURE What do we need to do tomorrow? Who do we need to partner with? INTERNAL Do Alone EXTERNAL Need to collaborate What are we doing today? Who do we partner with today? TODAY The Necessary Revolution, Peter Senge, 2008 © James G. Clawson

Senge’s Model of Change
Not from the top, from the bottom or middle, anywhere Organize in groups and teams not individuals Only need a few, e.g. 10 out of 8 Start people thinking, give them new insights Find stories to tell about value creation that we can’t escape Spend three years “hanging out” talking with people Network more, meet more people who are knowledgeable Spread it slowly (like zoysia grass) Listen and hear it from your peers Success depends on the richness of your networks Create visual images for people (they stick) Be consistent Remember executives can screw it up © James G. Clawson

Problem Leadership Problem Creating New New
LEADERSHIP ACTIVITY Questions Answers Problem Solving Old New Problem Finding New Old Problem Creating New New Adapted from Pathfinding by Harold Leavitt, 1995 © James G. Clawson

CLAWSON’S GENERAL CHANGE PROCESS
NEW BASELINE CONFIRMATION (4e, p 344) EXPERIMENT SEARCH FOR ALTERNATIVES NEW DATA DISCON- FIRMING Change from Baseline ENTHUSIASM ENGAGEMENT LEARNING HURT or PAIN DENY DISTORT DISCOUNT IGNORE CURRENT COMFORT ZONE Discon- firming Data ENCOUNTER NEW DATA CONFIRMING DATA BASELINE BEHAVIOR © James G. Clawson

Clawson Sequentially Help people get out of their comfort zones (habits) Be willing to deliver disconfirming data Identify and collaborate with like-minded groups Be willing to help people through pain and denial Help people identify alternative approaches (creativity, innovation) Help people plan their experiments (active coaching) Help interpret results data from experiments (encouragement) Reward and reinforce successes (encouragement) Be relentless in reinforcement Behave consistently all the time (c) James G Clawson

The Ethical Foundation of Extraordinary Leadership
Subpar Ordinary Extra- ordinary Good Enough 5’s 1’s 2’s 3’s 4’s How do you shift this distribution? © James G. Clawson

Traditional Leadership Technique
Planning Organizing Motivating Controlling Goal Setting Performance Reviews Reward Systems and Incentives … © James G. Clawson

The Ethical Foundation of Extraordinary Leadership
Subpar Ordinary Extra- ordinary Good Enough 5’s 1’s 2’s 3’s 4’s Truth Telling 10 Promise Keeping 10 Olympic Gold Medal Fairness 10 Respect for the Individual 10 Rich Teerlink, CEO Harley Davidson © James G. Clawson

to Effective Leadership
Six Steps to Effective Leadership 1. Clarifying your center 2. Clarifying what's possible 3. Clarifying what others can contribute 4. Supporting others so they can contribute 5. Being relentless 6. Measuring and celebrating progress © James G. Clawson

Elements in Effective Leadership
ENVIRONMENT SELF OTHERS TASK RESULTS Balanced Scorecard Financial Customer Operations Learning & growth ORGANIZATION © James G. Clawson

Leadership 1. The ability to influence others, and
2. The willingness to influence others 3. So that they respond voluntarily. (inside-out) © James G. Clawson

LEADERSHIP POINT OF VIEW
Do you SEE what needs to be done? Do you UNDERSTAND the situation thoroughly? Do you have the COURAGE TO ACT to make it better? © James G. Clawson

Leadership is, as you know, not a position but a job
Leadership is, as you know, not a position but a job. It’s hard and exciting and good work. It’s also a serious meddling in other people’s lives. One examines leadership beginning not with techniques but rather with premises, not with tools but with beliefs, and not with systems but with understandings. This I truly believe. Max DePree, Leadership Jazz, p. 7 © James G. Clawson

You are always teaching.
Every encounter between a superior and a subordinate involves learning of some kind for the subordinate. (It should involve learning for the superior, too, but that is another matter.) When the boss gives an order, asks for a job to be done, reprimands, praises, conducts an appraisal interview, deals with a mistake, holds a staff meeting, works with his subordinates in solving a problem, gives a salary increase, discusses a possible promotion, or takes any other action with subordinates, he is teaching them something. The attitudes, the habits, the expectations of the subordinate will be either reinforced or modified to some degree as a result of every encounter with the boss. . .The day‑by‑day experience of the job is so much more powerful that it tends to overshadow what the individual may learn in other settings. The Human Side of Enterprise pp. 199‑200 © James G. Clawson

Will you (not can you) change?
Will you ever become anything more than a vessel transmitting the memes and genes of previous generations on to the next? Will you rise above (transcend) your legacies and lead others to do the same? If not, … 106 © James G. Clawson

Importance of Learning
The only real source of competitive advantage may be the capacity to learn. Arie de Geus, The Living Company (c) James G. Clawson

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