New Criteria For Effective Leadership

I The Logic (is radical)

“ Problems cannot be solved at the same level of awareness that created them.” Albert Einstein

The assumption Humans and organizations are fundamentally different “beings” who have different needs that must be met in different ways in order for them to succeed. The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

A long and successful history of divide-and-conquer

Frederick Taylor – the scientific method
Time-managed, assembly line efficiency
Henry Ford: “ All I want is men’s hands ”
The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

The (radical) fact When it comes to understanding the deepest needs of organizations and individuals, each is a mirror image of the other… … exactly what is that need? The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

And what traits must both “beings” – the human being and the corporate being – possess in order to satisfy this essential need? … The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

8 Traits: The Building Blocks of Identity

Autonomy
Differentiation
Change
Stewardship
Purpose
Alignment
Brand
Sustainability

The source – The 8 Laws of Identity The Law of Being (Autonomy) The Law of Individuality (Differentiation) The Law of Constancy (Change) The Law of Will (Stewardship) The Law of Possibility (Purpose) The Law of Relationship (Alignment) The Law of Comprehension (Brand) The Law of the Cycle (Sustainability) The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

If organizations and individuals have the same fundamental need … … then , they should be led in the same fundamental way . The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

And, so, why not?
Unexamined assumptions
Lack of framework
Few tools
Inability to measure

II The Roadmap (unfolds)

Dow’s growth challenge – 1999
$18 billion+ sales
For years, only GDP growth ( 3 – 4% )
The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved

1. Autonomy

The Law of Being
One’s ability to live depends first upon defining one’s self as separate from all others.

Self: Strip away the labels

Organization: Forget the competition (for now)

Autonomy for Dow…

“ Forget”…

BASF
DuPont
Rohm & Haas

2 . Differentiation

The Law of Individuality
One’s natural capacities invariably fuse into a discernible identity that makes one unique

Self: Unearth what you love

Organization: Clarify unique capacities, not just strengths

Differentiation for Dow…

A genius for “ life-changing” customer relationships
A passion for scale
A bias toward the essentials of life
A talent for “whole system” thinking and action
An obsession with improvement

3. Change

The Law of Constancy
Identity is fixed, transcending time and place, while its manifestations are constantly changing.

Self: Make the connections that explain past events and foreshadow your future

Organization : Identify patterns of value creation over time

Change for Dow…
Dow has flirted with its societal impact since its inception:
Food
Calcium sulfide (for fruit trees); agchem business, 1908
Improved acetic anhydride yields Saran , 1928-45
Health and Medicine
Acetylsalicylic acid (aspirin), 1916
Nicorette developed (help quit smoking), 1983
Transportation
Butadiene, isoprene (rubber substitutes – tires), 1914
NASA’s Apollo 8 protected during reentry by Dow epoxy resin heat shield, 1968


4. Stewardship

The Law of Will
Every being is compelled to create value in accordance with their identity.

Self: Commit to the path revealed in what you’ve learned so far

Organization: Trust your instincts; stay the course

Stewardship for Dow…

“ We’re struggling to grow…
We need a north star – to know what we do beyond making resin pellets, styrene and the like. If we have an identity, we need to know what it is and what it may tell us about our future.”
- Bill Stavropoulos , former Dow CEO

5. Purpose

The Law of Possibility
Identity foreshadows potential.

Self: Follow the signs of joy.

Organization : Clarify your value-creating potential.

Purpose for Dow…

To constantly improve what is essential to human progress by mastering science and technology

6. Alignment

The Law of Relationship
People and organizations are inherently relational, and those relationships are only as strong as the natural alignment between the identities of the participants.

Self: Take stock of who matters and why

Organization: Connect with people and companies who will want what you have to give

The roadmap (unfolds)
Alignment for Dow
Employees (create value) Customers (purchase value) Investors (finance value) Suppliers Communities Government Unions Direct End users Society Analysts Portfolio managers Shareholders

7. Brand

The Law of Comprehension
One’s various capacities are only as valuable as the perceived value of the whole of that being.

Self: Declare yourself on the strength of your gift

Organization: “Go public”

Brand for Dow…


The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved Employees Chemicals, plastics and agricultural products are what we make, not who we are. Dow is a consumer essentials company .

8. Sustainability

The Law of the Cycle
Identity governs value, which produces wealth, which fuels identity.

Self: Surrender to the pull of identity

Organization: Make identity the cornerstone of leadership


The roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved Sustainability for Dow “ Sustainability requires making every decision with the future in mind. It is our relationship with the world around us - creating economic prosperity and social value, while contributing to the preservation of our planet.”

Dow …
1999
$18+ billion sales
For years, only GDP growth ( 3 – 4% )

2009
$50+ billion sales
Since1999: 13% annual growth rate

III The Science (emerges)

The Identity Impact Survey (Summer 2009)
One-year effort
1,941 respondents
5 companies (21 candidates)
$50MM to $8 billion
Global and domestic
Public and private
B2B and consumer
Sophisticated psychometrics
The Science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved

Individual Identity Strength (IIS) has a powerful, positive effect on employee engagement (r = .500)

The impact of Organizational Identity Strength (OIS) on engagement is even greater (r = .666)

Together, IIS and OIS have a major impact on employee engagement (r = .686)

Where does identity strength come from?

What’s the payoff?

In sum, identity strength reveals a company’s current value-creating capacity …

… Which has vital business implications
Constrained value creation
Handcuffed performance
Inefficient strategy deployment
Limited innovation
Overpromise, under-deliver on brand
Low-traction culture
Lower investment value
High value creation
Superior performance
Effective strategy deployment
Efficient innovation
Strong brand
Strong culture
High investment value
Low value creation
Sub-par performance
Ineffective strategy deployment
Depleted innovation
No meaningful brand
Dysfunctional culture
Low investment value
Pent-up value creation
Limited performance
Inefficient strategy deployment
Limited innovation
Brand confusion
Diffuse culture
Lower investment value

The science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved What is “Identity-based management?” A comprehensive system for aligning the interests and actions of organizations and individuals around value creation

IV The Opportunity (is now)

… To create fundamentally healthier, higher-performing organizations, based upon their value-creating potential

Authenticity
Integrity
Resilience
Efficiency
Endurance
The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved

Seven attributes of the identity-based organization:

Value creation is the common cause
Business results are measured in relation to identity strength
Identity influences strategy , including M&A
Identity informs culture and talent management
identity shapes brand
identity disciplines innovation
Identity strength indicates investment value

What about “ change ?” The identity-based organization:

Tolerates change
Grows through change
Fosters change

New logic, new order…
The economic universe + The identity universe =


W = VC i

W = Wealth
VC = Value Creation
i = Identity

Thank you! www.theidentitycircle.com

And the effects of identity strength can be exponential.

What are the rewards – and the risks – associated with this opportunity?

“ Value”…

The proprietary contribution one is capable of making:

In the marketplace
In the world

Status quo (assumptions)
Awareness
Framework
Tools
Metrics

New Criteria For Effective Leadership

by larryackerman on Feb 08, 2010

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New Criteria For Effective Leadership — Presentation Transcript