ELA's presentation to Saint Paul SCORE, the Service Corps of Retired Executives. Focus on building trust to improve stakeholder relationships.

1. Ethical Leadership Saint Paul SCOREAugust 9, 2011

2. “Business ethics is so…negative.”

3. Empower others to improve the world

4. Ethical Leaders in ActionLeadership Development Model LeadingSelf Leading in Context Leading Others

5. Learning across contexts

6. Among my teachers…

7. Thinking about stakeholders Investors Fiduciary Employees Partners Contractual Vendors Customers Environment Communities Competitors Arms-Length

8. A More Realistic View of Stakeholder Diagrams Relationshipsmay be harder tograph than toimprove!

9. The Old Employment Model:“Master-Slave” Not allslavery structureswere/are the same.The same Is true foremployment terms Minimally constrained by human rights. Employment at Will is a logical evolution from this view.Eugene Genovese’s economic conclusion: slavery didn’t pay! (The Political Economy of Slavery: Studies in the Economy and the Society of the Slave South, 1965).

10. Measuring Engagement Retention Safety Customer Service Productivity Profitability Source: Gallup Q12 Summary

11. Employee Engagement Drivers Clear expectations for performance Adequate materials and equipment Ability to succeedin assigned roles A supervisor who cares about subordinates Co-workers committed to quality work Opportunities to learn and grow Source: Gallup Q12 Summary

12. Why think about “Fair Process?” “Process” includesanything fromgiving feedback toa single FF to setting departmental strategy We are most likely to trust and co-operate with individuals and systems - whether we win or lose - when we experience fair process. Kim & Mauborgne, Harvard Business Review, July – August 1997

13. The Three Elements of Fair Process Engagement Stakeholders invited to participate Participants have an opportunity to be heard Explanation Process and rationale are clearly explained, along with decisions and outcomes. Explanation is respectful – it is also often educational. Expectation Clarity When decisions are made, implications for all stakeholders are clearly articulated. Everyone knows what to expect, and what is expected of them. FairProcess isworking WITHothers

14. Fair Process does not mean: Democracy Consensus Happiness or Contentment Accommodation of individual wishes or whims Command relinquishing legitimate decision authority or accountability Just being nice A good indication of a fair process is when people who do not“get their way” understand why and how a decision was made, and acknowledge that the process was fair.

15. The Misuse of Power Maintain control by keeping employee’s at arms length. Substitute memos and forms for direct, two-way communication. Avoid challenges to their ideas and authority. Believe that knowledge is power and retain power by keeping what they know to themselves. Deliberately leave the rules for success and failure vague.

16. Customer Expectations and Commitments What should our customers expect from us? Do we communicate about those expectations? How do we hold ourselves accountable? How do we respond when problems arise? “Even if two customers are buying the same product, they may want totally different services wrapped around it.” – VP, Customer Service, semiconductor firm

17. Challenge: engaging vendors What should your clients expect from their vendors? What should vendors expect of them? What do basic, healthy relationships look like? What about shared-destiny, strategic relationships?

18. Ethical Dimensions of Competitors Ethical Duties: Comply with laws Refrain from manipulating legal/regulatory processes Competition can expand markets and validate customer desire Competition can drive innovation, discipline, and efficiency. Defeating competitors is an easy surrogate for the pursuit of excellence.

19. The oldest leadership seminar Safety and comfort Tactical information Problem-solving Strategic decisions Who are we??? If we aren’ttelling stories,otherssurely are!

20. Thank you for your attention! Chad WeinsteinEthical Leaders in Action, LLC cweinstein@ethinact.com 651-646-1512 “We enable ethical leaders to achieve extraordinary results”