1. 2017 CCL Leadership Forum
Shanghai, China

2. © 2017 Center for Creative Leadership. All rights reserved.
Vertical Leadership
Development
Charles J. Palus PhD
Senior Fellow
palusc@ccl.org
Theoretical Roots
Applied Practice
Opportunities and Dilemmas

3. human transformation

4. The challenges we face …
… require human transformation.

5. Making meaning while
facing increasing
complexity
constructed
meaning
inherent
meaning
What makes us human?

6. Layers of Development

7. Development of human “beings”
• Meaning-making is what makes us human.
• Children develop in dramatic steps or “stages” (Jean Piaget)
• Adults continue to develop in stages (Lawrence Kohlberg, Bob
Kegan, Bill Torbert)
• Adults become increasingly mature as they “grow up” and
develop “bigger minds.”
• Our adult stage of development affects how we think and
act at work and at home.
• There are at least seven transformations possible in
adulthood.

8. X

9. X

11. From Transformations in Leadership © Dr. Edward J. Kelly 2014
The majority of babies born since 2000
can expect to celebrate their 100th birthday.

12. Development = Horizontal + Vertical
Vertical Development
Growing abilities to think and act in complex,
systemic, and interdependent ways.
Earned through life experience.
It’s about how you think.
Horizontal Development
Adding knowledge and skills.
Transmitted from experts.
It’s about what you think.
There are really two types of leadership development:
Petrie, N. (2014). Vertical leadership development, Part 1: Developing leaders for a
complex world. Center for Creative Leadership. White Paper.

13. “Vertical” and “Horizontal” are Metaphors
Vertical suggests:
Mindsets
Growing up, maturing
Greater perspective
Transformation of consciousness
Horizontal suggests:
Competencies
Expert knowledge
Technique
Where do you place the emphasis in your organization?

18. The future of leadership is
MINDSETS not COMPETENCIES
“Wake up, grow up, show up.”

19. Drivers of Vertical Development
Developmental transformation is driven by
reaching the limits in the current stage.
• People are frustrated by challenges.
• They experience the limits of their current way of thinking.
• In an area of their life that they care about deeply.
• Sufficient support enables them to persist in the face of the
anxiety and conflict.

20. Measuring Vertical Development

22. Seven Transformations of Leadership
Rooke, D., & Torbert, W. R. (2005, April). Seven transformations of leadership. Harvard Business Review, 66–77.
Alchemical – Integrates material, spiritual, and societal transformations
Transforming – Generates organizational and personal transformations
Redefining – Reframes complex problems in unique ways
Achiever – Driven by personal and team achievement
Expert – Focuses on logic and expertise
Diplomat – Wants to belong and fit in
Opportunist – Wins for self in any way possible

23. Founded in 2010 by Bill and Melinda Gates and
Warren Buffett, the Giving Pledge is a global
effort to help address society’s most pressing
problems by encouraging the wealthiest families
to give the majority of their wealth to
philanthropic causes.
Signatories of the Pledge aim to develop
innovative approaches to solve today’s greatest
challenges. The Giving Pledge provides a forum
for some of the world’s most engaged
philanthropists to discuss challenges,
successes and failures, and how to be smarter
about giving.
Bill Gates & Warren Buffett: The Giving Pledge

24. From Transformations in Leadership © Dr. Edward J. Kelly 2014

25. Vertical Development is
Both Individual And Cultural

26. Vertical Development is
Both Individual And Cultural
“Culture eats strategy for breakfast.”

27. Leadership Culture
Vertical Development is
Both Individual And Cultural

28. Leadership culture is the shared and deeply held
mindset of how to produce direction, alignment, and commitment in
the organization.
Vertical Development is
Both Individual And Cultural

29. Vertical Development is
Both Individual And Cultural
Leadership culture is the shared and deeply held
mindset of how to produce direction, alignment, and commitment in
the organization.
How do we define “leadership”?
What does good leadership look like around here?
Who are exemplary leaders?
How do we talk to each other?
How do we make decisions, engage conflict, give and receive feedback?

30. Organizational EvolutionThe Evolution of Leadership Cultures
c

31. Organizational EvolutionThe Evolution of Leadership Cultures
c

32. Organizational EvolutionThe Evolution of Leadership Cultures

33. Leadership is a
collective activity
Leadership emerges out of
individual expertise and heroic
action
People in authority
are responsible for leadership
Palus, C.J. McGuire, J.B., & Ernst, C. (2012). Developing interdependent leadership. In The Handbook for Teaching
Leadership: Knowing, Doing, and Being. Snook, S., Nohria, N. & Khurana, R. (Eds.). Sage Publications with the Harvard
Business School. Chapter 28, 467-492.
The Evolution of Leadership Cultures

34. Leadership is a
collective activity
Leadership
emerges out of
individual
expertise and
heroic action
People in
authority
are responsible
for leadership
Alchemical
Transforming
Redefining
Achiever
Expert
Diplomat
Opportunist
Cultural
Beliefs
Individual
Action Logics
+

38. Our company has developed 4 key
components that work in concert
to produce an industry leader.
RETAIL CONSUMER
FINANCE
TECHNOLOGY LOGISTICS

39. Ray Fidel, CEO, DriveTime asks Why ?
WHY ARE YOU, YOU?
WHY DO WE THINK IT’S WORSE TO FAIL THAN TO EVER TRY?
WHY ARE WE AFRAID TO BELIEVE WE CAN CHANGE THE WORLD?
WHY WOULD WE SETTLE FOR WHAT WE ARE DOING RATHER THAN DOING WHAT WE
BELIEVE IN?
WHY DOES THERE HAVE TO BE SOMETHING HOLDING US BACK?
WHY WOULDN’T WE ALWAYS CHALLENGE THE TRUTH?
WHY WAIT FOR TOMORROW WHEN WE CAN DO IT RIGHT NOW?
WHY LIVE THE SAME DAY WE’VE LIVED A HUNDRED TIMES BEFORE?
WHY ARE WE ALWAYS SO AFRAID TO MAKE A MISTAKE WHEN WE ALWAYS LEARN FROM

40. The Evolution of Leadership Cultures
Four Domains of Shared Leadership Practices:
• Feedback
• Risk Taking
• Conflict
• Decision Making

41. The Evolution of Leadership Cultures

42. © 2017 Center for Creative Leadership. All rights reserved.
Methods of Vertical Development
─ Coaching / mentoring / role models
─ Dialogue / difficult conversations / deep listening
─ Action-reflection learning
─ Stretch assignments / mistakes / failures
─ Polarity thinking
─ Systems / Network perspective
─ Mindfulness / Whole life integration
─ Societal-level, cross-sector partnerships
─ Culture change / Leadership Strategy *** START HERE

43. If you want 1 year of prosperity, grow grain.
If you want 10 years of prosperity, grow trees.
If you want 100 years of prosperity, grow people.
Grow up!

44. © 2017 Center for Creative Leadership. All rights reserved.
Vertical Leadership
Development
Charles J. Palus PhD
Senior Fellow
palusc@ccl.org
Thank you!
Questions & Insights?

45. ©2014 Center for Creative Leadership. All rights reserved.
Research & Development:
A Quick Tour of Promising
Ideas
Charles J. Palus PhD
Senior Fellow
Vertical Development in a Turbulent
World

49. ©2015 Center for Creative Leadership. All rights reserved.
Here’s an example of a network map
as part of the From Here to There
journey:

50. © 2017 Center for Creative Leadership. All rights reserved.

51. 2017 CCL Leadership Forum
Shanghai, China