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Larry Siedlick - Leadership for High Performance-Financial Executive Women Meeting-NY March2010


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Executive leadership skills for high performance organizations

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Larry Siedlick - Leadership for High Performance-Financial Executive Women Meeting-NY March2010

  1. 1. Leadership for High Performance OrganizationsFinancial Executive Women New York March 25, 2010 Larry Siedlick, CEO The ARx Group
  2. 2. Some Challenges Facing Business Leadership  Commoditization of Products/Services  Could mean only price matters  Less Financial Resources • Doing more with less  Changing Customer Relationships  Who is the customer?  Customers are more demanding  Labor Shortages - Shrinking Talent Pool • Generational/Cultural Differences of Staff6 of 46
  3. 3. Some Challenges Facing Business Leadership  Improve delivery of the service • Developing Organization-wide Customer Experience Culture  How to ask staff for a higher level of performance while maintaining quality • Searching the “Silver Bullet”  Bridging the CFO – CEO Cultural Divide7 of 46
  4. 4. CFO – CEO Relationship “CFO’s are from Earth – CEO’s are from Pluto”  CFO Thought Process vs. CEO Thought Process  2007 survey 47.5% of CFOs said “they were less optimistic about company financial prospects than their CEOs.”  Recipe for “CFO-CEO Tension Stew” 1. In a large bowl mix 1 Part Realist with 1 Part Visionary 2. Let stand at room temperature 3. Get out of the kitchen quickly8 of 46
  5. 5. What’s the measure of the CFO-CEO relationship? Does the CEO turn to the CFO for a second opinion on really important issues?  2007 Accenture Survey • 75% of CFO’s describe their role as “business partner” • 5 years before - 60% described role as “service providers”9 of 46
  6. 6. The Evolution of the CFO – CEO Relationship  Outstanding CFO begins as collaborator and influencer and evolves into a business partner/confidante  CFO starts to talk about business models instead of financial statements10 of 46
  7. 7. CFO – CEO Relationship “The CEO Wish List”  CFO can cut through complex financial data and present it in terms of the CEO’s objectives  CFO is adept at anticipating CEO’s need for his agenda  Say “No” but offer me a way to get to “Yes”  CFO who is a partner/confidante based on mutual trust11 of 46
  8. 8. CFO – CEO Relationship CEO Valuation of CFO Influence  Real CFO Influence/Value - Internal/External • Internal – strong relationship with CEO’s other direct reports • External – banks, accountant firm, opinion leaders • CFO in privately-held – many times are “chief spokesperson” to banks, investors  Viewed by entire organization as a business partner and not an accountant  CFO needs a strong mix of strategic, financial and12 of 46 leadership people skills
  9. 9. Leadership Defined Lead⋅er⋅ship [lee-der-ship] – noun - the ability to guide, direct, or influence people Based on that definition – “Who are the leaders in your companies?” Leadership - not to be confused with management.13 of 46
  10. 10. Today’s Goal “Scratch the Surface of Understanding”  How Leadership Connects to High Performance  How Leadership Culture Drives Value/Profits  Leadership Philosophy, Responsibilities, Characteristics and Competencies  Perception vs. Reality  What is the “Meaning of Life?” And other small stuff you probably already17 of 46 know
  11. 11. “What is the Meaning of Life?” Building Cathedrals and Temples  What is our organization’s purpose?  Not to be confused with “what we do”  Example of what I mean • What We Do at Sunrise • Perform laboratory tests on blood, body fluids or tissues samples to check for the presence of disease  What is Our Purpose? “We provide advanced laboratory services that prevent, diagnose and treat medical diseases18 of 46 to positively impact human health.”
  12. 12. Purposeful and Passionate Leadership “One person with passion is better than 40 people who are merely interested.”  Purpose Passion Inspired People  Passion – Powerful magnet for talented people • Talented people create value and profits  Leadership Passion Collective Passion • Collective Passion attracts a lot of talented people who in turn create a lot of value and profits.  Passionate Workplace = Passionate Performance19 of 46
  13. 13. Passion’s Role in a High Performance Organization  New Organizations /Projects are rarely without passion  Mature Organizations/People • Passion can be lost in the "operationalization“  Is our leadership style "passion-challenged?"  50% of senior executives struggle with maintaining the passion  Question: “Can we really evoke a strategy, a20 of 46 compelling saga, if our leadership is passionless? “
  14. 14. “Nothing great in the world has been accomplished without passion.” - George Wilhelm Hegel What do we do if our passion is lost?  Introspection – step back and remind ourselves what our company’s purpose is  Define, in words, what we are passionate about because we are language beings  “Languaging passion” makes clear in our own minds what we are up to, and we are then able to articulate it to others.21 of 46
  15. 15. “Languaging” My Passion “My passion is to revolutionize leadership in a way that would allow us to significantly alter the future.”22 of 46
  16. 16. Leadership Connects the Dots . . . “ Attracting, retaining and inspiring good people is directly proportional to our organizations culture.”  Attracting/inspiring great people . . . requires great organizational culture . . .  Great Organizational Culture is . . . driven by great leadership . . .  Great leadership . . . worked on EVERYDAY . . .  The Good News . . . Business offers new opportunities to lead everyday23 of 46
  17. 17. Is Leadership Genetic? Survey of 300 CEOs Worldwide  "Is leadership predominantly something you are born with or something that you develop through experience?“ • 40% said leadership was born • 60% said it was gained through experience  “What they considered to be the most important aspects -- and the most difficult -- of being a leader?” • Most Important: Having the right people was second only to creating vision • Most Difficult: Having the right people just behind maintaining momentum and developing people24 of 46
  18. 18. Leadership for Hiring the Right Team “Hiring for Dummies”  Customer minded/hard worker are NOT learned skills – they are personality traits  Most organizations hire people for what they know… then they fire them for who they are  Spend more time in the hiring process finding out who people are  Hire for behavior; train for performance ____________________________________ “To select the wrong person for a job is a common mistake; not to remove them is a fatal weakness.”25 of 46
  19. 19. Customer Experience* (*formerly Customer Service) “Why is it so hard for some people?” One Possible Theory  Technically Driven vs. Customer Driven Leadership  Technical people tend to manage/lead from an analytical perspective  We need to learn to manage/lead more from an emotionally benign perspective26 of 46
  20. 20. Customer Experience Culture “Top Down Philosophy”  #1 Priority is the Internal Customers  Recognizes the staff as customers  Strong emphasis on both teamwork and responsiveness to individuals  All levels of management are accessible and place strong emphasis on work environment  “Perception is Reality” Your staff’s perception of culture is their reality – no matter what we think.27 of 46
  21. 21. How Leadership Inspires* High Performance (* formerly motivates) “A million things to do in our spare time”  Giving Verbal and Visual Recognition  Say thanks to someone everyday  Smile - Keep the workplace friendly  Recognition in front of peers  Walk the “4 Corners”  Praise someone everyday  Non-monetary awards  Asking Questions and Listening Carefully  Listen to our staff - Listening tells us what staff needs (“Perception is Reality”)  Listen to staff ideas and act affirmatively on those28 of 46 suggestions
  22. 22. Other Things That Inspire People to High Performance  Opportunities for Growth  Within the position and, if possible, beyond the position  Empathetic and Thoughtful Leadership • Do what we say were going to do • Keep all our promises • Involve staff in decisions that directly affect them • Go out of our way to help staff • Be sympathetic to personal problems29 of 46
  23. 23. How do we help our people get to high performance? By Leadership that is …  Effective  Passionate  Emotionally Intelligent30 of 46
  24. 24. Passionate Leadership to Achieve High Performance “High-performance organizations are purpose-driven, while all others just operate day by day.”  Be purpose-driven  Staff embraces that purpose and passion as their own  Know our people  Leaders know their people  Develop their skills to help them reach full potential  Staff want to contribute meaningfully; create an environment where they can do so  Get people involved  Participation vs. “Following Orders”  Creates a personal interest in the decisions  Enable people to contribute31 of 46
  25. 25. Emotionally Intelligence Leadership “With Apologies to Daniel Goleman” Key Traits of High Emotional Intelligence  Optimism  Self-Awareness  Empathy  Impulse Control  Reality Check32 of 46
  26. 26. Competencies for High Performance Leadership  Know ourselves (Self Awareness)  Leaders remind people what is most important, but first we must know whats important to us  Be optimistic and empathetic (Social Awareness)  We set the tone for those around us  Connect with others (Relationship Management)  Understand what makes our staff perform at their best and what they need to help the organization succeed  Self Control of, and responsibility for, our actions (Self Management)  Assume responsibility for ourselves33 of 46
  27. 27. Leadership Competencies “Vision without action is daydreaming.”  Make timely decisions  Make a sound decision and move on  Develop a vision  Leaders job is defining the vision for others and inspiring them to follow34 of 46
  28. 28. Leadership Communication  Perhaps a leaders most significant function - the good news and the bad  “Intent vs. Impact” (Leaders choose and deliver their words carefully) Punctuate these 6 words: "woman without her man is nothing“ Men wrote: "Woman, without her man, is nothing." Women wrote: "Woman! Without her, man is nothing."35 of 46
  29. 29. Leading the Change to High Performance “Change is good – you go first.” - Dilbert Guide people toward the desired objective:  Say what we mean - Be straightforward and credible – Understanding what the leader wants = people working things out  Empathize, dont disdain – Understand a persons circumstances and help them develop a plan to improve the situation.  Have respect – People should feel responsible for their own actions and ideas – Respect their personal values, rather than forcing our own upon them.36 of 46
  30. 30. The Role of a Leader in High Performance Organizations “The future ain’t what it used to be.” – Yogi Berra  Strategist for Future  Look 3 years out into the future and share with staff  “How will our organization survive and improve in the future?”  Ambassador to important staff and customers  Increases staff’s trust in us and establishes our credibility  Inventor  Find staff /customer’s pain and develop (invent) new processes or services to relieve it  Inventor function ensures that the strategic direction of the company aligns around the staff’s and customer’s pain37 of 46
  31. 31. The Role of a Leader in High Performance Organizations  Coach, teacher to our direct reports  Culture of learning at all levels  Teach the big picture perspective  Teach some basic financial/budget facts to staff  Investor  Treat our organization/career as an investment of a life time  Strive to constantly increase it’s value  Striving to increase value leads us to good decisions and creates a stable work environment for people  Student  Stay active in some form of continued professional development38 of 46
  32. 32. Organizational Trust Theorem “The level of inspiration* in an organization can never rise above the level of trust.” (*formerly motivation)  Staff accepts and executes decisions even if they dont fully understand them  Staff gives up short-term benefits for long-term, mutually beneficial rewards  Staff shares the burden in difficult times  Staff responds with understanding to work emergencies  Staff invests their ideas and suggestions in the future39 of 46
  33. 33. Harness Our Team‘s Creative Energy Conditions Necessary for Creative Energy  An inspiring purpose  A “sense of urgency” that is shared by all  A "were all in this together" attitude  Goals that broaden people‘s abilities  A belief that teamwork can meet these goals  Know what our team really wants _____________________________________________ “For 25 years you’ve paid only for my hands when you could have40 of 46 had my brain for free.” – Retiring General Motors Worker
  34. 34. What People Really Want  Want to feel like members of a great team  Want to know the work they do is necessary  Want to know the work they do is important for the organizations survival41 of 46
  35. 35. Does all this “Leadership Stuff” really lead to High Performance? “We Report - You Decide”42 of 46
  36. 36. Some 2007 Prospective Before You Decide  Sunrise’s National Competitors are: – Quest Diagnostics  In 2007 was over $6.7 billion (US)  93 times the size of Sunrise – LabCorp  In 2007 was over $4.0 billion (US)  55 times the size of Sunrise43 of 46
  37. 37. 2007 Sunrise Leadership Culture Results 2007 Productivity Metric - Transactions/FTE 1. LabCorp 3,820 2. Sunrise 3,776 3. Quest 3,639 2007 Financial Metric – Revenue/FTE 1. Sunrise $206,220 2. Quest $151,053 3. LabCorp $143,63244 of 46
  38. 38. 2007 Sunrise Leadership Culture Results  Earnings similar to National Labs  High Organic Growth  Low Staff turn-over at all levels  High Customer Retention Rate45 of 46
  39. 39. One Final Theory “The Ultimate Metric” “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavour.” – Vince Lombardi, US Football Coach ______________________________________________________ Contact Information Larry Siedlick - The ARx Group Email:Lsiedlick@TheARxGroup.com46 of 46