In the 19 th and 20 th century, the key assets most companies competed with were natural physical, assets- included minerals, oil and land. Of the top 15 firms worldwide in market capitalization in 1928, 10 owed their success to ownership of natural physical assets. 1928 – Show Companies -------------------- As 20 th century progressed however, the determinants of competitive advantage switched from natural resources to plants and equipment and financial assets- the equity and debt capacity to create dominant scale in plant, eqmt and location of their industries 1969- show companies ------------------------------ But, by the late 20 th century, the terms of competition had changed quite dramatically. Many of the top 15 firms in the world market capitalization began quite recently, with little or no physical or financial assets- including Microsoft, Intel, Cisco, Wal-Mart. They depended on superior human and knowledge assets as their advantage- Human: great research scientists, inspired code writers, distribution geniuses, product and service innovators Knowledge: patents, brands, know-how, experience 2001 - Show companies
So What? To succeed, we need humans to bring forth all aspects of who they are – Passion Mistakes Fears Creativity This results in engaged workers (define?) At the same time workers are discovering they need something grreater (Megatrends stats)
With a need to cut labor costs - be smarter and quicker- there has been large scale downsizing (Ford) Seeking to gain unique leverage in markets, M&A’s have occurred Certainly orgs feel the pressure to use as many tools available to them to maintain a competitive edge, so the radical technological advances have changed orgl life significantly Orgs have had to find new and innovative ways to get work done such as rotating project teams, less vertical secure structure and more loosely arranged partnership that are always changing as well as individuals having to do many jobs, in order to respond to the quick changes that are occurring. Occupational Half Life: In the 1970’s, the occupational half life was bet. 12-15 yrs meaning that by 1985, 50% of an employees knowledge and skills would be outdtd or even obsolete. Today, the Dept of Labor estimates the occupational half life is between 30 –36 months (2.5 – 3 yrs) Key Point: What was once a powerful company connection for many employees- a stable job with a future within a consistent community- has given way to an ever-changing and unpredictable job world. Faced with the reality of job reqmts. in flux and the weak link between the job and the core business purpose, employees have been left feeling on one hand a deep disconnect to their work and to their organizations- - yet they have a deep longing for a new connection to their work and a deeper desire for orgl community within their organization- but not at the cost of a valued personal life. Though it’s been happening for a while, globalization is just beginning to show us on a day to day basis how it affects our business
Evidence that the form of modern US Org is making it a less than fulfilling place to work. Poll by Fast Co and Roper: Suggest a broad level of disappointment w/ career I this New Economy Started: Close to 50% hoped their job would be as meaningful as other things in their lives – significant drop to 26%
Stats from Megatrends 2010 Millions have invited spirit into their lives through personal growth, religion, meditation, prayer or yoga 2004 Gallup survey – 90% Americans believe in God, and 95% believe in a universal Spirit 60% Americans say they have absolute trust in God 1994 (10 years earlier) Gallup asked whether you feel the need to experience spiritual growth. Only 20% said yes. In 1999 it jumped to 78% - 58% increase in just 5 years. Sept. 11 th and corporate scandals – since 9/11 57% say they think more about their spiritual lives – Time/CNN/Harris Interactive poll- 16.5 million people practice yoga in 2005, up 43% since 2002 (in 3 yrs) 10 million meditate, twice as a decage ago according to 2003 Time cover story, “Meditation.” 1998 Colorado Shambhala Mtn Ctr hosts yoga and meditation programs – had 1342 visitors in 1998 and in 2003 15,000. Over a 5 year period, spiritual and religious books outpaces sales in all other categories, from 1.69 billion to 2.24 billion Spirituality & Business – Medicine good indicator of what’s coming – pioneers (Bernie Siegle, Carolyn Myss, Larry Dossey, Jon Kabat-Zinn and Herbert Bensen. ½ of US adults have explore alternative care, 2002 Newsweek cover story Now make more visits to alternative than trad’l and since not often covered by insurance, spend 30 billion of our own funds When changing values meet economic necessity, transformation takes off. Socially responsible investing – increased 5,000 % in last 2 decades – Washington DC based Social Investment forum Studies showing that prayer heals - (p. 135)
How has leadership responded to the changes in organizations? With its own evolution.
Mechanistic Driven by a Machine-like view of life, everything can be broken down into parts Nature and people’s behavior are controllable, Purpose of business is wealth creation: Competition is seen as win-lose Employees seen as interchangeable part in the big machine - Good employees are those who just do what told – If one ee can’t do job, they can be replaced. Command & convince, paternalistic leadership style, father-like figure makes decisions at the top and people carry them out, motivation by rewards & punishments Humanistic Context Driven b-------??People have freedom to make their own meaning Maslow – self actualization, finding & filling needs Wealth creation but with a win-win mentality between individuals. Employees seen as a resource to be managed sensitively , people have needs and are motivated by meeting them Consultative leadership, participative, emphasis on empowerment; leader’s job to help employees become self-actualized, invest both emotions and minds Holistic Context Driven by – realization that people are inherently good, Quantum physics – Probability replaced certainty in our understanding of matter & energy, systems theory, complexity science – self-organizing nature of life , Business & nature seen as interdependent Influenced by systems theory, complexity science which recognize the self-organizing nature of life, saw that uncertainty and complexity are part of the inter-connectedness of all activity, including business Win-win by integrating individual needs with the good of the whole Purpose of business and leadership is stewardship , corporate social responsibility, this context arose in response to humanistic context which was still about controlling people People are principle assets of wealth creation , esp. in knowledge-intensive orgs Conscious-Based Context Emerging context of leadership – driven by people are basically spiritual in nature, we’re just starting to see leaders talking about spirituality. Convergence of science & spirituality, spirit defined as that related to the essential nature of life, living in harmony with the inter-connectedness of all creation Purpose of business is spiritual fulfillment and service to society Wealth is a means for enabling and sustaining purpose Spirituality is the framework ; in the other contexts, spirituality just seen as one element of life where here spirituality is the framework and work, family, leisure are slices of the spirituality pie Uses learnings from 1980’s & 90’s – having material wealth doesn’t satisfy inner yearning for meaning & fulfillment. INTERESTING as we mentioned before, this type of organization and leader is emerging, and at the very same time that is what people are looking for from their work.
Leadership evolved alongside the evolution organizations went through This chart shows the evolution of the views of leadership on a number of dimensions We’re not going to now talk about this latest leadership context Because humans have needs that will never change (holding opposites slide) – that’s where this talk is going Transition….. Where is leadership now? The conscious context of leadership is just emerging, so what’s happening right now?
The Crossroads of Leadership We still grapple with what is a great leader Models and more models (prescriptive, point to the one right way – opposite of authentic) Lack of faith and trust in leaders, corporate scandals in US Leader as Hero – if we could just solve the ldshp issues, everything would be fine Leadership Crisis Stats , From Authentic Leadership by Bill George 2002 Time CNN poll – 71% feel “typical CEO is less honest and ethical than the average person” 72% rated moral and ethical stds of CEOs as fair or poor Crisis of Enron, Arthur Anderson – their focus was on short term gains, increase in stock prices only. “Orgs selected leaders for charisma and their ability to drive stock pirces up instead of their character. Then they shower them with rewards, so why should we be surprised when they turn out to lack integrity.” (p. 5) Seems the new context, the Conscious Context of leadership, is emerging because people want something more than what they’ve had, want meaning. What’s it going to take to move beyond where we are?
Death of the Hero Leader A key to moving beyond where we are is our view of leaders as heroes. Trad’l orgs designed for top person to make decisions and then be implemented by the doers who have no choices, leader is paid lot of money, creates the leader as the “lone wolf” making all decisions In emerging orgs, such as network orgs, reliant on knowledge workers, leaders have to be more collaborative so that decisions can be made at all levels – by the people who have the knowledge to make them. Leader’s self concept has to shift from lone wolf who makes decisions to someone who sets the context so others can make decisions – they become a context setter. Will require leaders to look deeper at themselves – why are they in ldshp position in first place? Were they drawn to power & wealth? It’s shifting away from that. Vicious Cycle Hero Leader – prescriptive of how to be a hero leader, overrides Authentic Leadership right there Organizations have changed, and people have changed too. People want more meaning and fulfillment from their work.
Because then you’re operating from a place of expectations around the role of leader… If not hero, then what is the role of leadership? Leader as context setter Create an environment for people to be their true selves, find purpose, meaning and fulfillment, to use their strengths and develop & grow Leaders can only do that if they do the same. They must first look within to find their true tone, purpose and meaning and why they are in leadership People want authenticity – they know it when they see it, they can sense when someone is being genuine Gallup Poll – Only About 20% of 1.7 million employees surveyed globally feel that their organizations make good use of their strengths in their work. In the US alone, the estimated 22.5 million workers whose hearts and minds are actively disengaged from their work cost the economy $300 billion annually. What does it mean to be authentic? We struggled with this part – because the minute we start to describe it, it’s not authentic, because being authentic is different for everyone. There’s a paradox in it. All we can really know is what the impact of an authentic leader is on the rest of us. Discussion…. True Tone Acknowledging Imperfections Facing Fears Knowing Opposites
What Does it Take to Find Your True Tone? Key is - Knowing Opposites - What do we mean by this? Ability to see your dark side, acknowledge that you both want power and don’t want it. You can use power in a good way or bad way. Acknowledging this about oneself at the onset sets the tone for letting yourself be human with all of our imperfections. Go to next slide to review…. Show Your Humanness Once you found it, go out and live it and keep returning to it. If you get off the path, find your way back.. Easy to get off the path - Sometimes the intention is to use the power to create a fair & just world, and we fantasize that when in leadership, we’ll have the power to do that, But often once getting into a position, it becomes hard to keep the fantasy going. Our values get tested. (Tom’s of Maine example – he got off the path and found his way back)
What do we mean when we say “holding opposites?” We all have some basic human needs that drive us – the need for power, to control, to feel competent, included, trust, and connection When it comes to leadership, if we don’t acknowledge that we have both sides of the continuum in us at different times, then one of the needs on one side of the continuum may be driving us without us knowing it. Walk through a few…. Power - feels good to have it and sometimes feels good not to have it, to have others tell us what to do….Accepting Powerlessness – Control – recognize our need to control others and our need to be right. This might be one of the hardest things to accept about ourselves – that we all have a need to control others to some extent. Inclusion - My example – I find this one hard to accept, and often think of other people as very controlling….the minute I start to say others are controlling, it lets me think I’m not so controlling and then I’m denying that part of myself. And I have learned I can sometimes have a strong need to control. So now when I’m in a situation and I feel some signals, I can say, wait, is this me just needing to control? If so, I can make different choices..)
We conducted research on trust where we interviewed close to 40 leaders in various industries and did an online survey with over 150 employees. Our primary aim was to understand the relationship between trust, ee commmitment and productivity. Our def of commitment – engagement is a big part of it – a person is fully committed – they know what the true purpose of their work is and find better ways to carry it out, improvements, etc. 1. Definition of Trust: - Def 1 – do no harm, def 2, in best interest. (I would now make that best interest of the greater good) Level 1 Trust (Do no harm) 54.5% from survey, 37.5% from interviews Level 2 Trust (Beneficial trust) 45.5% from survey, 62.5% from interviews 2. Sr. Leaders’ influence on trust in an org: When asked to choose between sr leaders and middle managers in terms of their influence on trust, 56% say sr. leaders vs. 45% middle managers 3. 58.4% either S.A. or A. that it’s difficult to trust that senior leaders consider their needs. Level 1 Trust – do no harm – at best. 4. 98% of managers said they are trusted by their staff. How do they know? YET Only 40% of the workers trust top management &quot;to always communicate honestly&quot; while a mere 38% say leaders &quot;do a good job of explaining important business decisions.&quot; (2005 What's Working™ survey, Mercer Human Resource Consulting, sample of 800 orgs in US). 5. Factors that maintain trust (level 2) - Acts of kindness - Helping others find their own style - Genuineness Candor & openness 6. Factors that Build Trust - Genuineness #1 Consistency of communications with action #2 Candid and sincere communications Trust & Genuineness Being genuine (candid & sincere, and consistency of communications with action) in one’s communication that really counts. Gotta know who you are to do this. And you can’t fake it.
INSPIRE TRUST Reflective Questions 1. How do you define trust? (Level 1 Trust vs. Level 2 Trust) In our research interviews, when asked to define trust, many people commented that it was a difficult question. 98.5% of managers who took the on-line survey think they are trusted by their employees. How do they know? And by what definition? And Trust – We see trust as a key measurement of authenticity, living by your true essence. Because when you do that, you are acting from genuineness and others can sense that and its much easier to trust. We’ve done some research on trust in organizations and we’ll share a little of what we’ve learned …..
The Essence of Leadership
Leadership & The New Mindset: The Essence of Leadership Comes From Within <ul><li>International Leadership Association, 8 th Annual Conference, Chicago, IL, November 2-5, 2006 </li></ul>
Natural Physical Assets: land, minerals, oil Competitive Assets 19 th and 20 th Century Mid 20 th Century Late 20 th Century Now – B-Web LAND OIL MINERALS Understanding... Equipment Finan. Assets Plants Human Knowledge
Changing Competitive Assets (In billions) Rotman Management 2002 205 AIG 19 DuPont 6 Canadian Rail 11 241 AOL 27 GE 6 Standard Oil 8 239 Walmart 24 Gulf Oil 6 NY Railroad 9 226 Vodafone 23 3M 6 Penn Railroad 10 244 Intel 31 Xerox 7 S.H. Kress 7 IBM Pfizer Exxon Cisco Citigroup Microsoft GE 2001 271 32 Texaco 7 F.W. Woolworth 6 194 19 Avon 5 Consolid. Gas 12 284 51 Exxon 8 DuPont 5 306 51 Eastman Kodak 9 General Electric 4 314 76 General Motors 9 U.S. Steel 3 335 102 AT&T 18 AT&T 2 459 159 IBM 22 General Motors 1 Market Value Market Value 1969 Market Value 1928 Rank
<ul><li>Organizations have needed to… </li></ul><ul><li>Be smarter </li></ul><ul><li>Move quicker </li></ul><ul><li>Cut Labor Costs </li></ul><ul><li>Stay ahead of trends </li></ul><ul><li>Make radical technological advances </li></ul><ul><li>Has resulted in… </li></ul><ul><li>Downsizing, m ergers & acquisitions </li></ul><ul><li>Death of the loyalty culture </li></ul><ul><li>Ever-changing & unpredictable job world </li></ul><ul><li>Work rotation among many teams </li></ul><ul><li>Shift to networks and partnerships </li></ul><ul><li>Inconsistent social group formation and support </li></ul>The Response <ul><li>The Workforce Needs to… </li></ul><ul><li>Adapt and change quickly </li></ul><ul><li>Increase their value through constant skill development </li></ul><ul><li>Perform at high levels with less structure and guidance </li></ul><ul><li>Has resulted in… </li></ul><ul><li>Occupational half-life </li></ul><ul><li>Frequent job changes seeking a “better” opportunity to gain skills </li></ul><ul><li>Workers doing many jobs in order to respond to the quick changes </li></ul><ul><li>Increased stress among workers </li></ul><ul><li>New focus on balance and well being versus just job fulfillment </li></ul>
<ul><li>70% of employees look for another job while you are paying them. </li></ul><ul><li>50% of all middle managers are currently looking for another position. </li></ul><ul><li>Only 28% of employees plan to be with their current company more than 10 years . </li></ul><ul><li>Volunteer resignations are the highest level in 20 years. </li></ul>The Workforce Dissatisfied Workforce Corporate Leadership Council 2004
Changing Needs Rotman Management 2002 18% 19% 4% 26% Thinking about that same job today, do you think your job is... When you began work for your current employer, did you think your job would be… Fast Company-Roper Starch Worldwide 1999 Survey 5% D) The most meaningful thing in your life. 46% C) Just as meaningful as family life and other activities. 37% B) Meaningful, but not as meaningful as the rest of your life. 12% A) Mostly just a way to make money.
<ul><li>78% say they feel the need to experience spiritual growth – up from 20% in 1994 (2004 Gallup survey) </li></ul><ul><li>Since 9/11 57% say they think more about their spiritual lives (Time/CNN/Harris Interactive poll) </li></ul><ul><li>16.5 million people practice yoga in 2005, up 43% since 2002 </li></ul><ul><li>10 million meditate, doubled from a decade ago (2003 Time Magazine) </li></ul><ul><li>1998 Colorado Shambhala Mountain Center, a yoga & meditation center, had 1342 visitors in 1998 and in 15,000 in 2003 </li></ul><ul><li>Half of US adults have explored alternative care (2002 Newsweek) </li></ul><ul><li>Socially responsible investing increased 5,000 % in last 2 decades </li></ul><ul><li>(Social Investment Forum, Washington, DC) </li></ul><ul><li>Aburdene, P., Megatrends 2010 </li></ul>Changing Needs
The Disconnect “ At the very moment when organizations have the highest need for competent, committed and engaged workers, employees have a totally different need- a sense of well-being, consistency and belonging.” Roger Martin, Dean at Rotman 2002
<ul><li>“ Leaders have always been products of the organizations they lead. As such, how we think about organizations has driven the way we think about leadership.” </li></ul><ul><li>-Roger Martin, “The Death of Heroic Leadership” </li></ul>Evolution of Leadership
Natural Physical Assets: land, minerals, oil Competitive Assets 19 th and 20 th Century Mid 20 th Century Late 20 th C. Now – B-Web LAND OIL MINERALS Understanding... Equipment Finan. Assets Plants Human Knowledge Now B Webs Leadership’s Evolution HOLISTIC EMERGING MECHANISTIC HUMANISTIC
Evolution of Leadership Spirituality: The Emerging Context for Business Leadership, www.globaldharma.org Radiating spiritual qualities Stewardship Participative empowerment Command and convince; Directive Leadership Style Spiritual fulfillment and service to society Wealth with accountability Wealth and power, win-win Wealth and power for owners, shareholders Purpose of Business Internal Alignment Triple Bottom Line Financial, Employer of Choice Maximizing Profits Measures of Success Contexts of Business Leadership in the West Enable people to express their spiritual purpose People are key asset People are unique People are interchangeable parts Managing People Fulfillment of their essential nature and purpose Doing good for self and society Fulfillment of Needs Rewards & punishments People are Motivated by People are spiritual in nature Inter-dependent and self-organizing Inherently good Needs to be & can be controlled Nature of Human Beings Conscious Holistic Humanistic Mechanistic
<ul><ul><li>In Wonderland, Alice </li></ul></ul><ul><ul><li>asks the cat, “Which road </li></ul></ul><ul><ul><li>should I take?” </li></ul></ul><ul><ul><li>“ Do you know where </li></ul></ul><ul><ul><li>you want to go?” inquires </li></ul></ul><ul><ul><li>the cat. “No,” says Alice. </li></ul></ul><ul><ul><li>To which the cat replies, </li></ul></ul><ul><ul><li>“ Then any road will get </li></ul></ul><ul><ul><li>you there.” </li></ul></ul>Leadership at a Crossroads
<ul><ul><li>The Death of the </li></ul></ul><ul><ul><li>Hero Leader </li></ul></ul><ul><li>“ Organizations suffer when </li></ul><ul><li>we ask too much of our leaders </li></ul><ul><li>and too little of ourselves.” </li></ul><ul><li>-Bolman & Deal, Leading with Soul </li></ul>Leadership at a Crossroads
<ul><li>“ Leadership is much more an art, a belief, a condition of the heart, than a set of things to do.” </li></ul><ul><li>-Max De Pree </li></ul>Leadership at a Crossroads
<ul><li>Paradox of Leadership: “The minute you think you’re a leader, you’re not.” </li></ul><ul><li>Jon Kabat-Zinn </li></ul>Paradox of Leadership
<ul><li>Owning Opposites </li></ul><ul><ul><li>Know your “dark side” intimately </li></ul></ul><ul><ul><li>Uncover and face your worst fear </li></ul></ul><ul><ul><li>Embrace uncertainty </li></ul></ul><ul><li>Risk Showing Your Humanness </li></ul><ul><ul><li>Track your trust index </li></ul></ul><ul><ul><li>Act on your ideals </li></ul></ul>Finding Your True Tone
Finding Your True Tone – Owning Opposites Feels good to have it Accepting Powerlessness Need to control others Need to be right and to know Not knowing, relying on expertise of others Hard wired biases, Judgmental tendencies Embracing diversity, Unique gifts of others Power Expertise/Competence Control Relationships/Connection Trust Openness Empowering All Assuming you are trusted Trust building, being trustworthy Means to an end Genuine interest in others Inclusion Need to belong, be valued Need to be independent
<ul><li>54.5% define trust as “do no harm” (Level 1) </li></ul><ul><li>45.5% define trust as “beneficial and supportive to another” (Level 2) </li></ul><ul><li>56% say senior Leaders influence how much trust there is in an organization vs. 45% for middle managers. </li></ul><ul><li>58.4% say it’s difficult to trust that senior leaders consider their needs. </li></ul><ul><li>98% of managers say their employees trust them </li></ul><ul><li>Factors that maintain Level 2 Trust: </li></ul><ul><ul><li>Acts of kindness </li></ul></ul><ul><ul><li>Helping others develop their own style </li></ul></ul><ul><ul><li>Genuineness </li></ul></ul><ul><ul><li>Candor & openness </li></ul></ul><ul><li>Top 2 factors that build trust in senior leaders: </li></ul><ul><ul><li>#1 Consistency of communications with action </li></ul></ul><ul><ul><li>#2 Candid and sincere communications </li></ul></ul>The Trust Factor
<ul><li>Trust Reflection Questions </li></ul><ul><li>1. How do you define trust? </li></ul><ul><li>2. What’s your “Self Trust Level?” </li></ul><ul><li>3. What’s your “Other Trust Level?” </li></ul><ul><li>Do you know your “Trust-ability” Factor? </li></ul><ul><li>Do you increase </li></ul>Your Trust Index
<ul><li>“ Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond imagination. It is our light more than our darkness which scares us.” </li></ul><ul><ul><li>- Marianne Williamson </li></ul></ul>Leadership and the new mindset
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