The Leading from the Heart Workshop®

“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

8.5 percent

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Bureau of Labor Statistics

What talent war?
17-21=
-4

Professional and
business services will
grow twice as fast as the
overall economy.
Source: Bureau of Labor Statistics

By 2012, one out of
five workers will be
fifty-five years old
or older.$
Source: Bureau of Labor Statistics

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“Why Retention Should Become a Core Strategy Now”
Harvard Management Update, October 2003$$

About half of Human
Resource professionals
say they are seeing new
workers entering the
workforce lacking
overall professionalism,
written communication
skills, analytical skills, or
business knowledge.
SHRM: 2005 Future of the U.S.
Labor Pool Survey Report$

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“It may be time to
reconsider the ‘they
have no place else to
go’ strategy of
employee retention.”$$
“Why Retention Should Become a Core Strategy Now”
Harvard Management Update, October 2003

virtualturnover

Old Interview
Interviewer: “Where do you see
yourself in five years?”
New Interview
Candidate: “If I invest the next five
years of my life in this company,
what ROI can I expect?”

!! Salary plus Incentive Pay
!! Paid Holidays and Vacations
Basic !! Long-Term Retirement Savings Plan
Worker
!! Employee Educational Assistance
Benefits
(negotiable) !! Medical and Hospitalization Insurance
with Dental and Vision options
!! Salary Continuation Plan (Sick Leave,
Long-Term Disability Insurance)

!! Fitness Center / Intramural Sports
!! Cafes with Healthful Meals
Premium !! Take-home Catering
Worker
!! In-house Day Care
Benefits
(old tie- !! Scholarships for Family Members
breakers)
!! Adoption Expense Assistance
!! On-site Dry Cleaning, Shoe Repair,
Photo Processing, Libraries

!! Cultural Diversity
!! Company Code of Conduct
addressing Worker Safety, Dignity
Values-Based and Respect
Worker
!! Paid Time Off for Volunteerism
Benefits
(new tie- !! Flex Time for Work / Life Balance
breakers)
!! Maternity, Paternity and Adoption
Leave of Absence
!! Career Planning and Job Coaching

The Boomer Agenda
1. Make love, not war. Done.
2. Make more money than Done.
our parents did.
3. Make a difference In progress.
(make amends for #2).

Whereas the Industrial Revolution drew
fathers outside the home to work, Gen
Xers probably grew up in households in
which both parents held jobs.

2
The Netter Paradox
“The money’s good.
But won’t you just
downsize me, too?”

When selecting employers,
job candidates from
all generations $
are focusing less on the
financial rewards and more
on the values rewards.

People join an organization.
They leave a manager.

Fact
In the war for talent,
everyone is fighting
over your best
employees.$$

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\\1]$ values-based leaders:
Accept Challenges and
Take Risks
OCI>L$CGI=HJCIC=D$
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.$

risk
Verb: To do something despite danger;
to incur the chance of harm or loss
by taking an action.

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

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

First, we weigh our chances of
How we success.
assess risk
determines Next, we measure the importance of
success.
how we
take risk. 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?

Admitting Ignorance
Leadership requires the
courage to surround
yourself with employees
who are potentially
better at their jobs than
you are at yours.

Pushing for
PRO Change
ACT “In a time of constant
change, one thing hasn’t
IVE
changed: Organizations are
still resistant to change.”
Robert Reich

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

Blowing the Whistle
Most workers are far too
faint-hearted for whistle
blowing. Too many
exhibit an unquestioning,
even fearful, reverence
for authority.

Addressing
Performance
Issues$$
If you’re like most
managers,
you tend to blame
yourself for
an employee’s
disappointing
performance.

GOfirst
“Leadership is going first
in a new direction—
and being followed.”
Andrew Grove

Trusting Your
Employees
Many managers find trusting
their employees highly anxiety-
provoking because of the risk
involved. The urge to peek over
their shoulders, or even do the
work themselves, is great.

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Seeker
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Challenge is not an activity,$$
it’s a state of mind.$$$$

Accepting Challenges=
Embracing
Chaos

“Hardy” individuals
are more likely to
approach stressful
$psychological events as
hardiness opportunities from
which to learn,
rather than as
threats to fear or
avoid.

2:1
Non-Hardy to Hardy$

attitudes of hardiness
the three
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Source: Suzanne Kobasa and Salvatore Maddi, The Hardy Executive: Health Under Stress

Without the threatening perceptions, individuals
with committed attitudes are free to actively
address and overcome stressful events.
Commitment
People committed to and involved in
their work are more apt to perceive
stress as interesting and meaningful.$$

Individuals also perceive stress more accurately
when they believe their personal efforts can
actively influence life’s events.
Control
People adapt to change best when
they understand the control they
have over their environments.

When we view stressful events as
challenging, they become normal
aspects of life.
Challenge
When chaos is welcomed, we can
perceive it as stimulating, if not a
hidden opportunity for personal
development.$$

“American managers actually enjoy
crises; they often get their greatest
personal satisfaction, the most
recognition, and their biggest
rewards from solving crises.”
Robert Hayes
“Why Japanese Factories Work”
Harvard Business Review July-August 1981

“Crises are part of
what makes work fun.”
Robert Hayes

Be hardy!

\\2]$ values-based leaders:
Master Both Listening
and Speaking
OCI>L$CGI=HJCIC=D$
The way we communicate with our
employees impacts how workers
understand our messages, and what
actions, if any, they take in response.

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

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“We really want to leverage our
synergy with this new initiative,
but there’s a disconnect in terms
of our reorg.”

“Market-leading provider of
technology-enabled process-
optimization tools seeks position
in which I can apply my
experience reducing cycle time
across supply chains.”

“What the…?”

jargon?
why
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.

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

These actions will
!align our resources
with market needs and
adjust the size of our
infrastructure.;$$
– ^<>E$&ALLCE>@3$DuPont CEO
announcing the elimination of 3,500 jobs

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

and intellectual
Communication
areas of your
is most effective
listeners’
when you speak
minds.
to both the
emotional

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

&SH<$

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

\\3]$ values-based leaders:
Live By The Values
They Profess
OCI>L$CGI=HJCIC=D$
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.$

“We aspire to be known as a
company with the highest standards
of moral and ethical conduct—
working to earn client trust, day in
and day out. Our word is our bond.”
From Citigroup’s statement of values

“Our word is our bond.”
Sanford “Sandy” Weill John Reed
CEO Citigroup Citigroup co-CEO
C. Michael Armstrong Jack Grubman
AT&T CEO and Citigroup Salamon Smith Barney’s
Board Member Top Telecom Analyst
92nd Street Y
Exclusive NYC Preschool

“I used Sandy to get my kids into 92nd
St. Y pre-school (which is harder than
Harvard) and Sandy needed Armstrong’s
vote on our board to nuke Reed in
showdown. Once coast was clear for
both of us (ie Sandy clear victor and my
kids confirmed) I went back to my
normal negative self on [AT&]T.
Armstrong never knew that we both
(Sandy and I) played him like a fiddle.”
E-mail from Jack Grubman
January 13, 2001$

“You will be confronted
with questions every day
that test your morals.
Think carefully, and for
your sake, do the right
thing, not the easy thing.”
- Dennis Kozlowski,
speaking to the St. Anselm College Class of 2002

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

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

“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

“House passes
bill to tax AIG
bonuses”$
Headline / Los Angeles Times/ March 20, 2009$

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

“We’ve got this idea
that business means
”
anything goes.
R. Edward Freeman, Director
Olsson Center for Applied Ethics

Used-car salesperson…slick
Politician…dishonest
Personal injury lawyer…greedy
Insurance agent…pesky
Postal worker…postal

Business leader…fraud

Consistency between an
organization’s stated values
and its leaders’ actual behavior
is critical to credibility.$$

When there is
discrepancy
between what leaders
say and what they do,
employees immediately
and rightly recognize
those leaders as frauds.$

Only four in ten
workers say their
employer’s core
values match
their own
Source: CO2 Partners

OBSERVINGANDINTERPRETING
Soon after they are hired,
employees start looking for
mutual expectations—which
of their own interests are
consistent with the values of
the organization.

alignment
Once they feel aligned,
individuals can start envisioning
their place in supporting the
organization’s success.

But if they sense they’ve been
duped, employees withdraw, become
defensive and cynical, start gossiping,
and begin causing trouble.

WHY BOTHER?
Eighty-two percent of workers
would rather earn less money at
an organization with ethical
business practices than receive
higher pay at a company with
questionable ethics.
LRN Ethics Study 2006

“Our findings confirm
that companies with a
commitment to ethical
conduct enjoy distinct
advantages in the
marketplace, including
attracting and
retaining talent.”
Dov Seidman, LRN CEO

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

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

Prove yours!

\\4]$ values-based leaders:
Freely Give Away Their
Authority
OCI>L$CGI=HJCIC=D$
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!$

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

4>LL@$K<Aa$

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

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

STYLE
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.

!
Micromanagers
mistrust their
employees, and have
Micromanagement: low expectations for
the opposite their abilities and
of Empowerment. results.

Micromanaged
employees “live
down to” the
expectations set
for them, thereby
perfectly
conforming to the
micromanager’s
views of them.

SAT THEM FURTHER AWAY
SMILED AT THEM LESS
MADE LESS EYE CONTACT
WITH THEM
CALLED ON THEM LESS
CRITICIZED THEM MORE
GAVE THEM LESS TIME TO
ANSWER QUESTIONS
TEACHERS & WITHHELD PRAISE FOR
SUCCESSFUL ANSWERS
MICROMANAGERS
PRAISED THEM FOR
Researchers studied how teachers
MARGINAL ANSWERS
behaved toward students for whom
DEMANDED LESS WORK
they had low expectations. They:$ FROM THEM

Leaders who consider
themselves effective
are less apt to micromanage
high
and more likely to set
expectations for their
employees.

Source: Employment Law Alliance
44 percent
have worked for an
abusive manager

Abused employees !!Degraded them
in public
described bosses
who: !!Rudely interrupted
them
!!Criticized them in
front of coworkers
!!Yelled at them
!!Ignored them
altogether
Source: Employment Law Alliance

Officer Al

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OUR LITTLE
secret
Abused employees will
retaliate—not toward the
boss, but against the
organization.

fortyninepercent
Less than half of all
employees understand the
steps their organizations
are taking to reach new
business goals.
Source: Watson Wyatt’s WorkUSA 2002 Survey

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

4
flawed beliefs about
empowerment

Managers assume
their employees
know, or ought to
know, that the
organization wants
them to take initiative.

Only when
employees know
your expectations $
will they be able to
fulfill them.

Managers presume
that all employees
welcome the
freedom to take
initiative.

FEAR
Humans have an innate desire to
contribute, but that passion conflicts
with our natural instinct to protect
ourselves against things we fear—
things like rejection, failure,
embarrassment, or retaliation.

Managers
conclude that
employees
who avoid
taking
initiative
are lazy.

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Managers think
they’ve finished
their work once
they’ve given
away their
authority.

“Empowerment is not abandonment.”
-Anita Tucker

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

\\5]$ values-based leaders:
Recognize the Best in
Others
OCI>L$CGI=HJCIC=D$
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.$

What prevents
our employees
from doing what
they do best?
Usually, our
emphasis on what
they do worst.

strivingforimprovement,
most of us do the same thing:
we take our strengths for granted,
and concentrate all our efforts on
conquering our weaknesses

Not surprisingly,
the vast majority of organizations
appear to believe that the best
way for individuals to grow is to
eliminate their weaknesses.

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

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

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

must pass
“The class of 2007 is the first in Ohio which
all five Ohio Graduation Test sections to receive a diploma.”
The Blade, May 22, 2007$$

mas!ter
Noun. An artist or performer of great
and exemplary skill; a worker
qualified to teach apprentices and
carry on the craft independently.

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

\\6]$ values-based leaders:
Have a Vision and Convince
Others To Share it
OCI>L$CGI=HJCIC=D$
We often describe children as having
wild or active imaginations. The best
leaders never outgrow their
imaginative gift.$

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his goal:
COMPLETE THE PUNISHING 140-MILE BIKE
RIDE FROM BOSTON TO PROVINCETOWN
IN TIME TO CATCH THE AFTERNOON
FERRY BACK HOME

“I’m going to
make this big.”
Billy Starr

Since its inception in 1980,
the Pan-Massachusetts
Challenge has raised
$171,000,000
for cancer research.

“A unified force
of people made
whole by the
belief in a
single mission
has the ability
to improve the
human
condition.”
-Billy Starr

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

Great leaders
convince
Convince others to share
their vision by
Others to
articulating it in
Share It memorable and
inspirational
ways.

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

“If you want to build a ship,
don’t drum up people to collect
wood and don’t assign them
tasks and work, but rather…”

“…teach them to long for the
endless immensity of the sea.”
— Antoine de Saint-Exupéry

INSPIRE
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“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

Without an inspiring
vision from their
leaders, employees
will struggle to
discern any link
between their
private ambitions
and the company’s
actual mission.$$

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“The biggest men and women
with the biggest ideas can be
shot down by the smallest men
and women with the smallest
minds. Think big anyway.”
Dr. Kent M. Keith
Anyway: The Paradoxical Commandments$$

“ Small ideas don’t bring
”
Big ideas do.
out our best.
—Kent Keith

“The future belongs to those
who see possibilities before
they become obvious.”
John Sculley

vital
SIX !!Accept challenges and take risks
integrities !!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
values-based leadership

leadership
is a craft, with the
best practitioners
guided by their
values

?
w nder
Verb: To be affected with surprise,
curiosity, or doubt; to wait with uncertain
expectation; to question or speculate.

“The biggest sin
of leaders is to
leave ambiguity
or uncertainty
lingering for
too long.”
Steve Richardson, SVP Human Resources
American Express Company

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