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RESULTS.com Leadership and the NEW Normal: workbook

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Workbook to the "Leadership and the NEW Normal seminar hosted by RESULTS.com and delivered by John Spence on March 15, 2012 in Auckland, New Zealand.

Workbook to the "Leadership and the NEW Normal seminar hosted by RESULTS.com and delivered by John Spence on March 15, 2012 in Auckland, New Zealand.

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  • 1. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal LEADERSHIP AND THE NEW NORMAL Brought to you by: www.johnspence.com 1
  • 2. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalORGANIZATIONAL EFFECTIVENESS AUDITAnswer the following questions as honestly as possible using this 1-10 point scale:1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure7 = Agree Somewhat 10 = Strongly Agree_______ We have a clear and detailed vision for the direction of our company that is very wellcommunicated throughout the entire organization._______ Every employee has clear / quantifiable / observable performance objectives._______ There is a high level of very open and honest communication throughout the organization._______ I have a high level of trust in the skills, abilities, and integrity of my co-workers._______ There is a high sense of urgency within the organization to get things done._______ We have only the best, highly competent people in all areas of the organization._______ We focus very intently on the needs of our customers._______ There is no politics, rumor-mongering or finger-pointing within our organization._______ Our key leaders operate as a highly-effective team._______ There is a high level of both personal and mutual accountability within the organization._______ People display a positive, enthusiastic attitude throughout the organization._______ We are superb at collecting and using feedback from our customers._______ Our organization displays great discipline in pursuing our focused business objectives._______ I am very pleased with where our organization is in the marketplace today. www.johnspence.com 2
  • 3. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalPPPPTHE 5 ELEMENTS OF STRATEGIC THINKINGEFFECTIVE STRATEGY = VALUED DIFFERENTIATION X EXECUTION www.johnspence.com 3
  • 4. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalTHE FOUR I’SHOW TO AVOID THE 4 I’S Aggressive external market focus. Ridiculously high level of customer focus. Keep the “Main Things” the main things. Bullish on knowledge sharing and learning. Teamwork is mandatory – not optional Passion and commitment at all levels. Foster a healthy paranoia. Revel in change. www.johnspence.com 4
  • 5. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal(T + C + ECF) X DE = SUCCESSHOW I DEFINE TALENT Impeccable Character Excellent Communicator Positive Attitude Customer Service Focused Creative / Innovative Strong Drive = Proactive Solid Team PlayerHIGH PERFORMANCE TEAMS:DMCCMD www.johnspence.com 5
  • 6. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalKEY TEAM COMPETENCIES 1-101. Setting clear, specific and measureable goals _______2. Making assignments extremely clear and ensuring required competence _______3. Using effective decision making processes within the team _______4. Establishing accountability for high performance across the entire team _______5. Running effective team meetings _______6. Building strong levels of trust _______7. Establishing open, honest and frank communications _______8. Managing conflict effectively _______9. Creating mutual respect and collaboration _______10. Encouraging risk-taking and innovation _______11. Engaging in ongoing team building activities _______Fully engaged customers deliver a _________ premium over the average customer interms of share of wallet, profitability, revenue, and relationship growth. www.johnspence.com 6
  • 7. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalWhat this chart shows: According to this global research study, by going from an average of“Somewhat Agree” to “Agree” on the Quality and Customer Relationship scores (in the eyes ofthe staff) the average company would more than double (104%) its financial performance!As another example: If you improve the average rating on Employee Satisfaction by 10 –15%(again going from “Somewhat Agree” to “Agree”) it will cause a 42% improvement in financialperformance, including both profitability and growth. Financial Performance CR=104.12 Highest Quality TOLERATE Products / Services & NOTHING Excellent Customer Relationships LESS CR= .404 Employee CR=.27 Satisfaction CR=.275 CR=.249 CR=.334 CR=.280 Empowerment Coaching High Standards CR=.285 CR=.371 CR=.365 CR=.191 CR=.247 Long-term Enthusiasm, Training & Fair Orientation Commitment, Development Compensation RespectCR = Causal Relationship Based on: “ Practice What You Preach” by Maister www.johnspence.com 7
  • 8. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalHERE IS THE LIST OF THE TOP FACTORS THAT DROVE THESE COMPANIES TO BRING IN FINANCIALRETURNS THAT WERE OFTEN 20 TIMES LARGER THAN THEIR COMPETITORS...1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree_______ We have an uncompromising determination to achieve excellence in everything we do._______ We have a real commitment to high-quality work, and tolerate nothing less._______ We have a real commitment to high levels of customer service, and tolerate nothing else._______ In this company we set and enforce very high standards for performance._______ Everyone in the organization has been trained on the important of superior customer service._______ We keep customers informed on issues affecting their business with us._______ We make our customers feel as though they are very important to us._______ Customer satisfaction is a top priority in our company._______ We do consistent training on delivering the highest quality products and service possible._______ We listen very well to what the customer has to say._______ We are extremely good at building long-term customer relationships._______ The people in our company do “whatever it takes” to do a good job for the customer._______ We do a good job of resolving customer problems when they occur._______ We always place the customers’ interests first, even ahead of those of the company._______ Our employees are highly engaged in their work._______ Our employees take great pride in working for our organization. READ THAT LIST AGAIN… AND AGAIN!!! THIS IS CRITICAL TO YOUR SUCCESS www.johnspence.com 8
  • 9. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalKEY ATTRIBUTES OF A WINNING CULTURE High aspirations and a desire to win _______ Customer / market focus _______ Ownership mentality _______ Bias to action _______ Individuals who team _______ Passion and energy _______ www.johnspence.com 9
  • 10. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalHOW WELL DOES YOUR ORGANIZATION STACK UP?1= POOR 5 = AVERAGE 10 = SUPERIOR______ Fun: people smile at work and enjoy their day and who they work with.______ Family: people genuinely care about others and how they are doing.______ Friends: many friends at work, sometimes a best friend.______ Fair: people are treated with dignity and respect, their opinions matter.______ Freedom: no micro-management, people are empowered to succeed.______ Pride: employees are proud to tell people where they work.______ Praise: some sort of sincere and specific praise once every 7 days.______ Meaning: more than a pay check, employees feel like they are doing something important.______ Results: employees feel like they are making real progress, getting key things done. S B ATHE SIX UNIVERSAL DRIVERS OF ENGAGEMENT______ Caring, competent, and engaging leaders.______ Effective managers who keep employees informed, aligned and engaged.______ Effective teamwork at ALL levels.______ Job enrichment and professional growth.______ Valuing employee contributions.______ Concern for employee well being. www.johnspence.com 10
  • 11. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalDO YOUR EMPLOYEES LOOK LIKE THIS?_______ They give more discretionary effort._______ They consistently exceed expectations._______ They take more responsibility and initiative._______ They receive better customer service ratings._______ They offer more ideas for improvement._______ They promote and model teamwork._______ They volunteer more for extra assignments._______ They anticipate and adapt better to change._______ They persist at difficult work over time._______ They speak well of the organization. www.johnspence.com 11
  • 12. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalTHE FIVE STEPS TO IMPLEMENTING A WINNING CULTURE1. Perform a culture audit and set new expectations.2. Align the management team.3. Focus on results and build accountability.4. Communicate and celebrate.MOST IMPORTANT LEADERSHIP SKILLSDo the leaders in your organization display these attributes?Superb communication skills _______Lead by example to demonstrate character and competence _______Establish and maintain clear and meaningful vision _______Provide motivation to create ownership and accountability for results _______Clarify performance expectations _______Foster teamwork and collaboration _______Develop clear performance goals and metrics _______Consistently deliver superior results ________ www.johnspence.com 12
  • 13. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal IS YOUR COMPANY UP TO SPEED? ADAPTED FROM FAST COMPANY MAGAZINE Score your company from 1 to 10: 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure 7 = Agree Somewhat 10 = Strongly Agree WE HAVE A STRONG EMOTIONAL BOND WITH OUR CUSTOMERS: ________ Competing strictly on price, quality, and features is the road that most companies travel— and it is the road to disaster. In a world of overcapacity, endless choice, and savvy buyers—there will always be some company that can do it a little faster, a little cheaper, or a little better than you can. Companies that prosper over the long haul don’t just offer good deals, they exude genuine affection and concern for their customers. They build strong, customer intimate relationships as trusted advisors and true business partners. WE HAVE A UNIQUE STRATEGY THAT CLEARLY STANDS OUT: ________ You can’t do great things if you are satisfied doing things just “a little better” than your rivals. If you want to win big, you have to think differently. You must pursue strategic ideas that challenge the status quo in the industry. You must create a position that is unique, highly valuable in the marketplace, and defendable from your competition. OUR ORGANIZATION IS A FUN PLACE TO WORK— AND A FUN ORGANIZATION TO DO BUSINESS WITH: ________ The most productive companies have an atmosphere of fun and excitement that permeates their entire culture. This does not mean people sit around and play video games and tell jokes all day long, it simply means that people smile and have fun while at work. They enjoy their work and the people they work with—and especially serving their customers. WE ARE BUILT TO CHANGE: ________ The only certainty in business today is that some crucial elements of your strategy, the competitive landscape, your customer’s expectations, the underlying economics of your industry will be different tomorrow. That is why change itself has become a core capability in organizations that prosper over the long run. Companies that succeed—embrace, even revel in change. www.johnspence.com 13
  • 14. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalWE STRONGLY EMBRACE THE VALUE OF VALUES: ________Today, more than ever, customers dont just ask “What products do you make?” or “What servicesdo you offer?” they also ask “What values does your company stand for?” The company with theclearest sense of purpose, bolstered by honesty and integrity wins.WE ARE AS DISCIPLINED AS WE ARE CREATIVE: ________(AND AS CREATIVE AS WE ARE DISCIPLINED)Creating long-term value means delivering short-term results—every quarter, every week, everyday. There is no contradiction between creativity and execution. The most innovative companiestend to be the most disciplined when it comes to making their numbers. Think outside the box, butbuild a strong box to stand on while doing it.WE USE TECHNOLOGY TO CHANGE EXPECTATIONS AND RESHAPE OUR BUSINESS: ________Every business is a technology business. Regardless of your product, service or industry—everycompany that hopes to survive, let alone win, must embrace technology as a fundamental driver oftheir business strategy. Fundamental values and core business excellence is powered by relevant (tothe customer) technology.WE ARE BUILT FOR SPEED: ________Being fast does not mean reckless. But fast companies do understand the cost of hesitation anddelay—whether responding to a customer’s complaint or launching a new product. Successfulcompanies know that time is as valuable a resource as money or talent and treat it accordingly.WE HAVE BUILT A COMPANY OF LEADERS: ________There is much more to leadership than the vision and charisma of the CEO. The most effective formof leadership is grassroots leadership; the companies with the most confident and committedleaders, in all levels of the organization, are companies that win. www.johnspence.com 14
  • 15. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalTHE WEB OF VALUE: VOC + MOT + WOM www.johnspence.com 15
  • 16. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalVOC + MOTAnswer the following questions as honestly as possible using this 1-10 point scale: 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent______ We have a very robust and well-developed process for capturing the VOC._______ We do numerous customer surveys annually._______ We have a “Customer Advisory Panel” that helps us understand the VOC._______ We meet with our top clients regularly to solicit their feedback and ideas._______ Everyone in our organization understands what our customers think/say is important._______ We clearly understand our key Moments Of Truth (MOT)._______ Our MOT were defined specifically from the feedback of our customers._______ We have built very well-developed and clear processes/systems around each of our MOT._______ We are nearly flawless in consistently delivering our MOTs perfectly._______ We truly own the Voice Of the Customer (VOC).THE KEY MOT FOR OUR BUSINESS ARE: www.johnspence.com 16
  • 17. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalWOM = WORD OF MOUTH From John Jantsch: The Referral EngineWHAT ARE THREE THINGS YOU CAN DO RIGHT AWAY TO GENERATE POSITIVEWORD OF MOUTH AND STRONG PERSONAL REFERRALS? www.johnspence.com 17
  • 18. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalTHE 4 + 2 FORMULAThe Four Primary Management Practices1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent_______ Strategy: Devise and maintain a clearly stated, focused strategy.Whatever your strategy, it will only work if it is sharply defined, clearly communicated, and wellunderstood by employees, customers, partners, and investors._______ Execution: Develop and maintain flawless operational execution.Winners consistently meet the expectations of their customers by delivering on their valueproposition. Bad quality, in products or service, surely will hurt._______ Culture: Develop and maintain a performance-oriented culture.One of the best indicators of being performance-oriented is the way you deal with your own poorperformers. It is easy to reward good performers. What matters is whether you have the courageto get rid of poor performers._______ Structure: Build and maintain a fast, flexible, flat organization.What really counts is whether structure reduces bureaucracy and simplifies work. Simpler andfaster - such are the best goals for all organizations.The Four Secondary Management Practices_______ Talent: Hold on to talented employees and find more.Winning organizations pay great attention to finding, growing, developing, and rewarding verytalented people._______ Leadership: Key leaders are truly committed to the business.The research data clearly showed that the leadership effectiveness of the top executives, onaverage, influenced 15% of the variance in corporate performance, for better or for worse!_______ Innovation: Make innovations that are industry transforming.Agile companies that were highly innovative and able to anticipate rather than react to disruptiveevents in the marketplace, were always the winner._______ Partnerships: Make growth happen through winning combinations.Internally generated growth is essential, but companies that can also master partnerships,alliances, mergers, and acquisitions are much more likely to be winners in the long run.Based on: “ What (Really) Works” by Joyce www.johnspence.com 18
  • 19. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalWHAT INHIBITS EXECUTION? Inability to work together = poor teamwork Company culture = tolerating mediocrity / lack of accountability Economic climate Holding onto the past = unwillingness to CHANGE www.johnspence.com 19
  • 20. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalDISCIPLINED EXECUTION1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree______ We have a clear vision for exactly where we are trying to take our organization.______ We have a detailed and specific plan to accomplish the key objectives we are trying toexecute.______ Our senior leaders are all 100% committed to executing the key objectives.______ The key leaders/employees in our organization are all superb at execution.______ All of the major objectives we are pursuing are fully aligned and mutually reinforcing.______ We have excellent systems and processes in place to ensure consistently superb execution.______ There is continuous and transparent communication throughout he entire organization aboutexactly where we stand on executing on our key objectives.______ Every employee has all of the training, support, equipment and resources they need todeliver the results required of them.______ We are superb at adjusting and adapting our strategy and objectives when truly necessary.______ We do a great job of celebrating both small and big wins and praising great performance.______ We refuse to tolerate mediocrity or lack of accountability and deal decisively with peoplewho are not able to meet the clear standards of performance in our organization. www.johnspence.com 20
  • 21. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalIBM Philly Gear Kiss Theory Goodbye•Collaborative partnerships with customers. •Best people •Superior leadership•Drive unique value and growth through •Transparency •Sales effectivenessinnovation that matters. •Customer focus •Flawless operational execution•Invest in people. •Sell value •Superb financial management•Leverage talent and knowledge through •Have FUN •Customer loyaltytrust and communication. Skinner Nurseries Ram Charan: Know HowCharlie Trotter •Own the word service •Position / Reposition the business to•Only the best people (passion) •Best people make money•Lots of communication •Lots of communication •Pinpoint patterns and change - then take•Highest standards •Know your business action•Innovation •Have a plan •Build a strong culture of excellence•Truly delight the customer •Sell value •Hire the best people - build them intoGood to Great Small Giants leaders•Best people •Independent vision •Build a TEAM of leaders•Effective (Level 5) leaders •Strong Relationships •Set the right goals - then FOCUS on key•Deal with difficult issues -employees priorities•Focus on the main things -customers The Six Secrets of Change•Patience + discipline -community 1. Love your employeesResults Rule •Caring workplace 2. Connect meaning to the work•Tell the truth •Flexible structure 3. Invest in your people•Pursue the best over the easiest •Passionate 4. Learning/innovation IS the work•Leverage the power of partnerships Think Big - Act Small 5. Transparency rules•Focus on the main things •Stewardship 6. Create learning systems•Accountability •Transparency Firms of Endearment•Constant improvement •Accessibility Meaningful workMicrosoft •Stand for something Partnerships with all stakeholders•Best people •Erase superficial distinctions Respect for individuals•Bet the company In Search of Excellence Transparency•Require failure •A bias for action Teambuilding•Managers are qualified •Close to customer Empowerment•Performance is what counts •Intra-preneurship Fun work environment•Money where it is important •Values driven Support for life balance•Stop the insanity •Focus on core competencies Training and development are highSpence: 6 Ways to Run or Ruin •Simple structure priorities1. Clear Vision •Minimal bureaucracy Recognition and celebration have a high2. Robust Communication Top 7 CEOs priority3. Culture of Urgency •Customer focus Mavericks at Work4. Disciplined Execution •Passion for the job Value-based differentiation5. Best People •Culture counts Transparency + knowledge sharing6. Focus on the Customer •Constant innovation Bond with customers4+2 Formula •Learn from the best Talent + culture•Clear, focused strategy Tough Management Mastering the Rockefeller Habits•Flawless execution •Communicate clearly Right people doing the right things right•Performance-oriented culture •Force the hard decisions Clear focused one-page strategic plan•Fast, flexible, flat organization •Focus on results Strong core values.-Best people •Remain flexible Organizational alignment and focus-Committed leaders •Prove your value to the company Relentless and consistent communication-Innovation •Force collaboration of the theme.-Growth through partnerships •Be a tough manager / not a tough Transparency and openness to employeeTop Concerns of 700 CEOs guy feedback.1. Have not communicated my vision Toyota Way Key executives highly aware of the2. Do not discuss the tough stuff •Clear and compelling vision business.3. Do not have the best people in key •Constant improvement (Kiazen) Deliver the brand promise and trulypositions •Go to the source (Genchi Genbutsu) delight customers.4. Lack of disciplined execution •Respect and mutual accountability •Teamwork www.johnspence.com 21
  • 22. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal www.johnspence.com 22
  • 23. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal WORKSHOP: IDEAS INTO ACTION Go back page-by-page and carefully look back through the entire workbook. Compare and contrast your scores on the various audits and re-read any notes you wrote. What are the themes that emerge… the patterns? Look for any scores below a 7 as an area that needs improvement and anything in the 1-4 range as a serious problem that needs attention. The goal here is to really dig into these topics so you can take an honest look at the actual current state of your organization. This is a rare opportunity to take a critical look at how well your organization is truly operating and specifically what must be done to improve it. Take this exercise very seriously and push yourself to really understand what these scores and everything you learned today about world-class organizations and controlling the market could mean to your business. Here are three major questions to keep in mind: 1. Strengths What was the pattern of high scores? In what major areas did you seem to have as strengths, where you scored an 8 or higher across all of the workshops? 2. Weaknesses What was the pattern of low scores? In what major areas did you seem to have as weaknesses, where you scored a 6 or lower across all of the workshops? www.johnspence.com 23
  • 24. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal 3. Key Strategies for Success Based on everything you have learned here today and your own personal business experience, what are the 4—6 most important ideas that will drive your organization’s ability to control the market? (Please describe these in detail. You might lead off with a single word or short phrase, but then you’ll need to give a definition and description to exactly what you mean. It must be clear precisely what each ideas means and how you will pursue it.) www.johnspence.com 24
  • 25. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal 4. Action Steps Based on the list you just created, as well as the strengths and weaknesses you identified please list at least 4 specific, measurable, and observable action steps that can be done right away to take the lessons of this class and put them into positive action for your organization?1.2.3.4. www.johnspence.com 25
  • 26. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal NOTES: www.johnspence.com 26
  • 27. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal NOTES: www.johnspence.com 27
  • 28. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal NOTES: www.johnspence.com 28
  • 29. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal NOTES: www.johnspence.com 29
  • 30. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal THE LEADERSHIP CHALLENGE KOUZES & POSNER JOSSEY-BASS BEING HONEST Honesty was selected more often than any other leadership characteristic; it consistently emerged as the single most important ingredient in the leader-constituent relationship. That nearly 90% of the respondents want their leaders to be honest above all else is a message that all leaders must take to heart. Just how do constituents measure honesty? By observing the leader’s behavior. In other words, regardless of what leaders say about their own integrity, people wait to be shown; they watch and observe carefully. Consistency between word and deed is how we judge someone to be honest. Honesty is also related to values and ethics. We appreciate people who take a stand on important principles. We resolutely refuse to follow those who lack confidence in their own beliefs. Confusion over where the leader stands creates stress; not knowing the leader’s beliefs contributes to conflict, indecision, and political rivalry. We simply don’t trust people who won’t tell us their values, ethics and standards. Even worse, though, is someone who tells us they hold a certain value – then acts in complete disagreement with that value. www.johnspence.com 30
  • 31. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalBEING FORWARD-LOOKINGWe expect our leaders to have a sense of direction and a concernfor the future of the organization. Leaders must know wherethey are going if they expect others to willingly join them on thejourney.In a separate study of 300 senior executives, “a leadership styleof honesty and integrity” and “a long-term vision and direction forthe company” were ranked as the number one and two mostimportant characteristics in a successful leader.In a joint study with Columbia University, 98% of therespondents (8,500) ranked “the ability to convey a strong visionof the future” as a very important quality for effective leaders.We want to know what the organization will look like, feel like, belike when it arrives at its goal in six months or six years. Wewant to have it described to us in rich detail so that we’ll knowwhen we’ve arrived and so that we can select the proper routefor getting there.BEING INSPIRINGWe also expect our leaders to be enthusiastic, energetic, andpositive about the future It’s not enough for a leader to have adream about the future. A leader must be able to communicatethe vision in ways that encourage us to sign on for the duration.Some react with discomfort to the idea that being inspiring is anessential leadership quality. In the final analysis, though, leadersmust inspire our confidence in the validity of the goal.Enthusiasm and excitement are essential and signal the leader’spersonal commitment to pursuing that goal. If a leader displaysno passion for a cause, why should anyone else? www.johnspence.com 31
  • 32. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalBEING COMPETENTTo enlist in another’s cause, we must believe that the person iscompetent to guide us where we are headed. We must see theleader as capable and effective.Leadership competency doesn’t necessarily refer to the leader’sabilities in the core technology of the operation. In fact, the typeof competence demanded is value-added competence.Functional competence may be necessary, but it’s insufficient; theleader must bring some added value to the position. Expertise inleadership skills themselves is another dimension of competence.PUTTING IT ALL TOGETHERWhat we found in our investigation of admired leadershipqualities is that, more than anything, we want leaders who arecredible. We must believe that their word can be trusted, thatthey’ll do what they say, that they’re personally excited andenthusiastic about the direction in which we’re headed, andthat they have the knowledge and skill to lead.THE FIVE FUNDAMENTAL PRACTICES OF EXEMPLARYLEADERSHIPAs we looked deeper into the dynamic process of leadership,through case analysis and survey questionnaires, we uncoveredfive fundamental practices that enable leaders to getextraordinary things done.The best leaders in the world are able to: Challenge the process Inspire a shared vision Enable others to act Model the way Encourage the heart www.johnspence.com 32
  • 33. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalCHALLENGE THE PROCESSThose who lead others to greatness seek and accept challenge.They are pioneers – people willing to step out into the unknown.They are willing to take risks, to innovate and experiment inorder to find new ways of doing things. But leaders need notalways be the creators or originators of new products, services orprocesses. In fact, it’s just as likely that they’re not. Product andservice innovations tend to come from customers, clients,vendors, people in the labs and people on the front lines, whileprocess innovations tend to come from the people doing thework.The leader’s primary contribution is in the recognition of goodideas, the support of those ideas and the willingness to challengethe system in order to get new products, processes, services andsystems adopted.INSPIRE A SHARED VISIONLeaders have a desire to make something happen, to change theway things are, to create something that no one else has createdbefore. In some ways, leaders live their lives backward. Theysee pictures in their mind’s eye of what the results will look likeeven before they have started the project. Their clear image ofthe future pulls them, and their people, forward.People must believe that leaders understand and have their bestinterests at heart. Only through intimate knowledge of theirdreams, their hopes, their aspirations, their visions, their values isthe leader able to enlist support. Leadership is a dialogue – not amonologue. www.johnspence.com 33
  • 34. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalENABLE OTHERS TO ACTLeadership is a team effort. After reviewing more than 2,500“personal-best” cases, we developed a simple test to detectwhether someone is on the road to becoming a leader. That testis the frequency of the use of the word – “We.”Leaders enable others to act. They know that no one does his orher best when feeling weak, incompetent or alienated; they knowthat those who are expected to produce the results must feel asense of ownership. Leaders involve, in some way, all those whomust live with the results, and they make it possible for others todo well.Leadership is a relationship built on trust and confidence.Without trust and confidence, people don’t take risks. Withoutrisks, there’s no change. Without change, organizations die.MODELING THE WAYLeaders go first. They set an example and build commitmentthrough simple, daily acts that create progress and momentum.Leaders model the way through personal example and dedicatedexecution.Leaders need operational plans. They must steer projects alonga predetermined course, and take corrective action. Yet thepersonal-best cases we examined included very little about grandstrategic plans and massive organizational changes; theysounded more like action—adventure stories. They were aboutthe power of little things piled one on top of the other until theyadded up to something really big. Concentrating on small wins,leaders build confidence that even the biggest challenges can besuccessfully met. www.johnspence.com 34
  • 35. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalENCOURAGE THE HEARTThe climb to the top is arduous and long. People becomeexhausted, frustrated and disenchanted. They are often temptedto give up. Leaders encourage the heart to carry on.It is part of the leader’s job to show people that they can win.Encouragement is curiously serious business. It’s how leadersvisibly and behaviorally link rewards with performance. Whenstriving to raise quality, recover from disaster, start up a newservice, or make a dramatic change of any kind, leaders makesure people benefit when behavior is aligned with cherishedvalues. www.johnspence.com 35
  • 36. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal RESPONSIBLE MANAGEMENT GETS RESULTS Faust, Lules, Phillips AMACOMBased on an in-depth diagnosis of more than 3,000 organizationsto assess their strategic architecture (vision, strategy, structure,information feedback and control systems, reward systems); theirculture and functional areas (marketing and sales, operations,HR, and financial); and a variety of key outcomes (revenue,profit, community image, morale, turnover, etc.) The diagnosis regularly reveals problems in six specificareas where “responsibility” in the organization is ratedlow.CREATING A CLEAR, MEANINGFUL SENSE OFDIRECTIONPeople want to know where they are heading. A clearunderstanding of the organization’s vision, mission, goals andstrategy not only gives people comfort; it lets them share in theexcitement of the journey. It gives them a context for their owndecisions and lets them be creative contributors. Within thisframework, employees can contribute their own solutions and usetheir own common sense, experience, skills and judgment, andthey can take pride in their contributions.The tools to communicate direction include: A clear statement of purpose and core values. An inspiring and specific vision of an exciting future. A focused set of strategic initiatives that we follow to achievethe vision in the shorter term (1-3 years). Processes and documents that communicate the vision,strategies and goals and translate them into meaningful,concrete terms for those who will make them happen. www.johnspence.com 36
  • 37. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalHAVING AND LIVING BY VALUES PEOPLE RESPECTCore values may drive a company’s strategy and decisions andmay be major determiners of its success. But they are not theonly values by which companies are judged. There are a numberof other values, real or imagined, long-term or short-term, thataffect whether people will choose to be responsible to a givenorganization.Most people believe that a person’s or company’s behavior is insome way reflective of their values. Human beings have a verystrong tendency to read intent into behavior. Employees regularlyinfer the values of the organization from the behavior of itsleaders.RESPECTING PEOPLE AND THEIR CONTRIBUTIONPeople want to work in an environment where they and theircontributions are respected. When there is no respect, each dayis demeaning. There is little sense of self-worth and contribution.Confident, optimistic, capable people will not stay in anenvironment that offers little respect.HAVING A COMPATIBLE CULTUREThe culture of an organization is the embodiment of its truevalues and philosophy. It is expressed in the typical behavior ofits employees and its policies, procedures, systems, structures,decisions, and day-to-day actions. Employees need to feelcompatible and comfortable with the corporate culture.BEING A SOURCE OF PRIDEPeople like to take pride in their organization. Motivationincreases naturally as people see their organization doing thingsthey believe will make it more successful. The reciprocal is alsotrue; people lose all motivation when they witness theirorganization behaving in ways that are contradictory to statedvalues, goals or strategies. www.johnspence.com 37
  • 38. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal TRUE NORTH BILL GEORGE JOSSEY-BASS 2007A dramatic shift is taking place in the caliber and character of new leaders. Theseleaders recognize that leadership is not about their success or about getting loyalsubordinates to follow them. They know that the key to a successful organization ishaving empowered leaders at all levels, including those that have no direct reports.We call these leaders “authentic leaders.” Authentic leaders do not only inspire thosearound them, they empower them to step up and lead. Thus we offer a new definitionof leadership: the authentic leader brings people together around shared purpose andempowers them to step up and lead authentically in order to create value for allstakeholders.There are five dimensions of an authentic leader:1. PURSUING PURPOSE WITH PASSIONMost people struggle to understand the purpose of their leadership. In order to findtheir purpose, authentic leaders must first understand themselves and their passions.In turn their passion shows the way to the purpose of their leadership.2. PRACTICING SOLID VALUESLeaders are defined by their values, and their values are personal -- they cannot bedetermined by anyone else. Integrity, however, is the one value required of everyauthentic leader. If you do not have integrity, no one will trust you, nor should they.The values of an authentic leader are shaped by their personal beliefs and developedthrough study, introspection, consultation with others, and years of experience. Thetest of an authentic leaders values is not what they say but the values they practiceunder pressure.3. LEADING WITH HEARTAuthentic leaders lead with their hearts as well as their heads. To some, leading withthe heart may sound soft, as though the authentic leaders cannot make tough choicesinvolving pain and loss. Leading with heart is anything but soft. It means havingpassion for your work, compassion for the people you serve, empathy for the peopleyou work with, and the courage to make difficult decisions. Courage is an especiallyimportant quality for leaders as they navigate through unpredictable terrain. www.johnspence.com 38
  • 39. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal4. ESTABLISHING ENDURING RELATIONSHIPSThe ability to develop enduring relationships is an essential mark of authenticleaders. People today demand personal relationships with their leaders before theywill give themselves fully to their jobs. They insist on access to their leaders,knowing that trust and commitment are built on the openness and depth ofrelationship with their leaders. In return, people will demonstrate greatcommitment to their work and loyalty of the company.5. DEMONSTRATING SELF-DISCIPLINEAuthentic leaders know competing successfully takes a consistently high level ofself-discipline in order to produce results. They set high standards for themselvesand expect the same from others. This requires accepting full responsibility foroutcomes and holding others accountable for their performance. When leaders fallshort, it is equally important to admit their mistakes and initiate immediatecorrective action. Self-discipline should be reflected in their personal lives as well,because without personal self-discipline it is not possible to sustain self-discipline atwork.In summary, authentic leaders genuinely desire to serve others through theirleadership. They are more interested in empowering the people they lead to makea difference than they are in power, money, or prestige for themselves. They are asguided by qualities of the heart, by passion and compassion, as they are byqualities of the mind. They lead with purpose, meaning, and values. They buildenduring relationships with people. Others follow them because they know wherethey stand. They are consistent and self-disciplined. When their principles aretested, they refused to compromise. Authentic leaders are dedicated to developingthemselves because they know that becoming a leader takes a lifetime of personalgrowth. www.johnspence.com 39
  • 40. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal A BRIEFING FOR LEADERS DILENSCHNEIDER HARPER BUSINESS HOW A LEADER SETS DIRECTION Create a strong vision Articulate a clear course Bias the organization toward action Lift up the organization Practice excellent personal communications Earn conviction Sustain the vision Create unity of purpose Leverage the strength of the culture Support positive rituals Harmonize vision and culture Train people to focus THE FIVE VALUES OF A STRONG CORPORATE CULTURE 1. Integrity: be a living example of your leadership values 2. Accountability: do what you say you will do—build trust through personal responsibility 3. Diligence: work hard, set a good pace, complete projects on or before deadlines 4. Perseverance: overcome obstacles while maintaining a positive and enthusiastic attitude 5. Discipline: do all of these things, every single day www.johnspence.com 40
  • 41. RESULTS.com The Business Execution ExpertsLeadership and the NEW NormalPERSONAL LEADERSHIP COMPETENCY MODELBased on the presentation and all of the materials you have read, please create a detailed outlineof your own “personal leadership competency model.” What are the specific skills, abilities,and attitudes you feel you must have in order to become the sort of leader you aspire to be?Please be as precise as possible, listing measurable and observable behaviors whenever possible. Iam not looking for just a few bullet points here, I want you to give this some serious thought anddescribe in clear detail what your personal leadership philosophy is built upon. What are the mostessential things you need to do every day to be a living example of an excellent leader? Look backover the reading, study the notes you took from the presentation, think about great leaders andpoor leaders who have worked with in your life — and develop a very clear, vivid and specificdescription of exactly what your leadership philosophy is and what you feel you must do every dayto be an effective and successful leader. www.johnspence.com 41
  • 42. RESULTS.com The Business Execution ExpertsLeadership and the NEW Normal NOTES: www.johnspence.com 42