New Criteria For Effective Leadership

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This presentation offers a radical view of leadership: that the same 8 factors which account for effective company leadership also account for effective personal leadership - changing the very nature of the employer-employee relationship, forever.

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  • CAPITALIZE ON THE ECONOMIC INTERDEPENDENCE OF STAKEHOLDERS – ALIGN THEIR INTERESTS
  • WHEN I BEGAN WORKING WITH DOW IN 1999, GROWTH HAD STALLED. ALLOWING FOR ACQUISITIONS (INCLUDING UC), THAT IS STILL SOME STORY! THE MOST IMPRESSIVE PART IS THE GROWTH RATE …
  • WHEN I BEGAN WORKING WITH DOW IN 1999, GROWTH HAD STALLED. ALLOWING FOR ACQUISITIONS (INCLUDING UC), THAT IS STILL SOME STORY! THE MOST IMPRESSIVE PART IS THE GROWTH RATE …
  • New Criteria For Effective Leadership

    1. 1.   Confidential Information © 2008 The Identity Circle. All rights Reserved The Identity Effect – Shape a better company and a better you by marshaling the 8 building blocks of leadership
    2. 2. The story in brief Confidential Information © 2008 The Identity Circle. All rights Reserved   I The Logic II The Roadmap III The Science   IV The Opportunity  
    3. 3. I The Logic (is radical)
    4. 4. “ Problems cannot be solved at the same level of awareness that created them.” Albert Einstein
    5. 5. 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
    6. 6. <ul><li>A long and successful history of divide-and-conquer </li></ul><ul><li>  </li></ul><ul><li>Frederick Taylor – the scientific method </li></ul><ul><li>Time-managed, assembly line efficiency </li></ul><ul><li>Henry Ford: “ All I want is men’s hands ” </li></ul>The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved
    7. 7. 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
    8. 8. The need to create value and be rewarded for it in return … The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved
    9. 9. 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
    10. 10. <ul><li>8 Traits: The Building Blocks of Identity </li></ul><ul><li>  </li></ul><ul><li>Autonomy </li></ul><ul><li>Differentiation </li></ul><ul><li>Change </li></ul><ul><li>Stewardship </li></ul><ul><li>Purpose </li></ul><ul><li>Alignment </li></ul><ul><li>Brand </li></ul><ul><li>Sustainability </li></ul>The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved
    11. 11. 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
    12. 12. 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
    13. 13. <ul><li>And, so, why not? </li></ul><ul><li>Unexamined assumptions </li></ul><ul><li>Lack of framework </li></ul><ul><li>Few tools </li></ul><ul><li>Inability to measure </li></ul>The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved
    14. 14. II The Roadmap (unfolds)
    15. 15. <ul><li>Dow’s growth challenge – 1999 </li></ul><ul><li>$18 billion+ sales </li></ul><ul><li>For years, only GDP growth ( 3 – 4% ) </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    16. 16. <ul><li>1. Autonomy </li></ul><ul><li>  </li></ul><ul><li>The Law of Being </li></ul><ul><li>One’s ability to live depends first upon defining one’s self as separate from all others. </li></ul><ul><li>  </li></ul><ul><li>Self: Strip away the labels </li></ul><ul><li>  </li></ul><ul><li>Organization: Forget the competition (for now) </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    17. 17. <ul><li>Autonomy for Dow… </li></ul><ul><li>  </li></ul><ul><li>“ Forget”… </li></ul><ul><li>  </li></ul><ul><li>BASF </li></ul><ul><li>DuPont </li></ul><ul><li>Rohm & Haas </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    18. 18. <ul><li>2 . Differentiation </li></ul><ul><li>  </li></ul><ul><li>The Law of Individuality </li></ul><ul><li>One’s natural capacities invariably fuse into a discernible identity that makes one unique </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>Self: Unearth what you love </li></ul><ul><li>  </li></ul><ul><li>Organization: Clarify unique capacities, not just strengths </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    19. 19. <ul><li>Differentiation for Dow… </li></ul><ul><li>  </li></ul><ul><ul><li>A genius for “ life-changing” customer relationships </li></ul></ul><ul><ul><li>A passion for scale </li></ul></ul><ul><ul><li>A bias toward the essentials of life </li></ul></ul><ul><ul><li>A talent for “whole system” thinking and action </li></ul></ul><ul><ul><li>An obsession with improvement </li></ul></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    20. 20. <ul><li>3. Change </li></ul><ul><li>  </li></ul><ul><li>The Law of Constancy </li></ul><ul><li>Identity is fixed, transcending time and place, while its manifestations are constantly changing. </li></ul><ul><li>  </li></ul><ul><li>Self: Make the connections that explain past events and foreshadow your future </li></ul><ul><li>  </li></ul><ul><li>Organization : Identify patterns of value creation over time </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    21. 21. <ul><li>Change for Dow… </li></ul><ul><li>Dow has flirted with its societal impact since its inception: </li></ul><ul><li>Food </li></ul><ul><li>Calcium sulfide (for fruit trees); agchem business, 1908 </li></ul><ul><li>Improved acetic anhydride yields Saran , 1928-45 </li></ul><ul><li>Health and Medicine </li></ul><ul><li>Acetylsalicylic acid (aspirin), 1916 </li></ul><ul><li>Nicorette developed (help quit smoking), 1983 </li></ul><ul><li>Transportation </li></ul><ul><li>Butadiene, isoprene (rubber substitutes – tires), 1914 </li></ul><ul><li>NASA’s Apollo 8 protected during reentry by Dow epoxy resin heat shield, 1968 </li></ul><ul><li>  </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    22. 22. <ul><li>4. Stewardship </li></ul><ul><li>  </li></ul><ul><li>The Law of Will </li></ul><ul><li>Every being is compelled to create value in accordance with their identity. </li></ul><ul><li>  </li></ul><ul><li>Self: Commit to the path revealed in what you’ve learned so far </li></ul><ul><li>  </li></ul><ul><li>Organization: Trust your instincts; stay the course </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    23. 23. <ul><li>Stewardship for Dow… </li></ul><ul><li>  </li></ul><ul><li>“ We’re struggling to grow… </li></ul><ul><li>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.” </li></ul><ul><li>- Bill Stavropoulos , former Dow CEO </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    24. 24. <ul><li>5. Purpose </li></ul><ul><li>  </li></ul><ul><li>The Law of Possibility </li></ul><ul><li>Identity foreshadows potential. </li></ul><ul><li>  </li></ul><ul><li>Self: Follow the signs of joy. </li></ul><ul><li>  </li></ul><ul><li>Organization : Clarify your value-creating potential. </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    25. 25. <ul><li>Purpose for Dow… </li></ul><ul><li>  </li></ul><ul><ul><li>To constantly improve what is essential to human progress by mastering science and technology </li></ul></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    26. 26. <ul><li>6. Alignment </li></ul><ul><li>  </li></ul><ul><li>The Law of Relationship </li></ul><ul><li>People and organizations are inherently relational, and those relationships are only as strong as the natural alignment between the identities of the participants. </li></ul><ul><li>  </li></ul><ul><li>Self: Take stock of who matters and why </li></ul><ul><li>  </li></ul><ul><li>Organization: Connect with people and companies who will want what you have to give </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    27. 27. The roadmap (unfolds) <ul><li>Alignment for Dow </li></ul>Employees (create value) Customers (purchase value) Investors (finance value) Suppliers Communities Government Unions Direct End users Society Analysts Portfolio managers Shareholders
    28. 28. <ul><li>7. Brand </li></ul><ul><li>  </li></ul><ul><li>The Law of Comprehension </li></ul><ul><li>One’s various capacities are only as valuable as the perceived value of the whole of that being. </li></ul><ul><li>  </li></ul><ul><li>Self: Declare yourself on the strength of your gift </li></ul><ul><li>  </li></ul><ul><li>Organization: “Go public” </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    29. 29. <ul><li>Brand for Dow… </li></ul><ul><li>  </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    30. 30. 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 .
    31. 31. <ul><li>8. Sustainability </li></ul><ul><li>  </li></ul><ul><li>The Law of the Cycle </li></ul><ul><li>Identity governs value, which produces wealth, which fuels identity. </li></ul><ul><li>  </li></ul><ul><li>Self: Surrender to the pull of identity </li></ul><ul><li>  </li></ul><ul><li>Organization: Make identity the cornerstone of leadership </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    32. 32. 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.”
    33. 33. <ul><li>Dow … </li></ul><ul><li>1999 </li></ul><ul><li>$18+ billion sales </li></ul><ul><li>For years, only GDP growth ( 3 – 4% ) </li></ul><ul><li>  </li></ul><ul><li>2009 </li></ul><ul><li>$50+ billion sales </li></ul><ul><li>Since1999: 13% annual growth rate </li></ul>The Roadmap (unfolds) Confidential Information © 2008 The Identity Circle. All rights Reserved
    34. 34. III The Science (emerges)
    35. 35. <ul><li>The Identity Impact Survey (Summer 2009) </li></ul><ul><li>One-year effort </li></ul><ul><li>1,941 respondents </li></ul><ul><li>5 companies (21 candidates) </li></ul><ul><li>$50MM to $8 billion </li></ul><ul><ul><li>Global and domestic </li></ul></ul><ul><ul><li>Public and private </li></ul></ul><ul><ul><li>B2B and consumer </li></ul></ul><ul><li>Sophisticated psychometrics </li></ul>The Science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved
    36. 36. The main finding: ‘ Identity strength’ is a leading indicator of business performance… The Science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved
    37. 37. (IIS + OIS)> EE = VC The Science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved
    38. 38. Individual Identity Strength (IIS) has a powerful, positive effect on employee engagement (r = .500)
    39. 39. The impact of Organizational Identity Strength (OIS) on engagement is even greater (r = .666)
    40. 40. Together, IIS and OIS have a major impact on employee engagement (r = .686)
    41. 41. Where does identity strength come from?
    42. 42. What’s the payoff?
    43. 43. In sum, identity strength reveals a company’s current value-creating capacity …
    44. 44. … Which has vital business implications <ul><li>Constrained value creation </li></ul><ul><li>Handcuffed performance </li></ul><ul><li>Inefficient strategy deployment </li></ul><ul><li>Limited innovation </li></ul><ul><li>Overpromise, under-deliver on brand </li></ul><ul><li>Low-traction culture </li></ul><ul><li>Lower investment value </li></ul><ul><li>High value creation </li></ul><ul><li>Superior performance </li></ul><ul><li>Effective strategy deployment </li></ul><ul><li>Efficient innovation </li></ul><ul><li>Strong brand </li></ul><ul><li>Strong culture </li></ul><ul><li>High investment value </li></ul><ul><li>Low value creation </li></ul><ul><li>Sub-par performance </li></ul><ul><li>Ineffective strategy deployment </li></ul><ul><li>Depleted innovation </li></ul><ul><li>No meaningful brand </li></ul><ul><li>Dysfunctional culture </li></ul><ul><li>Low investment value </li></ul><ul><li>Pent-up value creation </li></ul><ul><li>Limited performance </li></ul><ul><li>Inefficient strategy deployment </li></ul><ul><li>Limited innovation </li></ul><ul><li>Brand confusion </li></ul><ul><li>Diffuse culture </li></ul><ul><li>Lower investment value </li></ul>
    45. 45. 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
    46. 46. IV The Opportunity (is now)
    47. 47. <ul><li>… To create fundamentally healthier, higher-performing organizations, based upon their value-creating potential </li></ul><ul><li>  </li></ul><ul><ul><li>Authenticity </li></ul></ul><ul><ul><li>Integrity </li></ul></ul><ul><ul><li>Resilience </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Endurance </li></ul></ul>The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved
    48. 48. <ul><li>Seven attributes of the identity-based organization: </li></ul><ul><li>  </li></ul><ul><ul><ul><li>Value creation is the common cause </li></ul></ul></ul><ul><ul><ul><li>Business results are measured in relation to identity strength </li></ul></ul></ul><ul><ul><ul><li>Identity influences strategy , including M&A </li></ul></ul></ul><ul><ul><ul><li>Identity informs culture and talent management </li></ul></ul></ul><ul><ul><ul><li>identity shapes brand </li></ul></ul></ul><ul><ul><ul><li>identity disciplines innovation </li></ul></ul></ul><ul><ul><ul><li>Identity strength indicates investment value </li></ul></ul></ul>The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved
    49. 49. <ul><ul><li>What about “ change ?” The identity-based organization: </li></ul></ul><ul><ul><li>  </li></ul></ul><ul><ul><li>Tolerates change </li></ul></ul><ul><ul><li>Grows through change </li></ul></ul><ul><ul><li>Fosters change </li></ul></ul>The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved
    50. 50. <ul><li>New logic, new order… </li></ul><ul><li>The economic universe + The identity universe = </li></ul><ul><ul><li> </li></ul></ul>The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved
    51. 51. <ul><li>W = VC i </li></ul><ul><li>  </li></ul><ul><li>W = Wealth </li></ul><ul><li> VC = Value Creation </li></ul><ul><li>i = Identity </li></ul>The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved
    52. 52. Thank you! www.theidentitycircle.com
    53. 53. Identity, the human phenomenon The Science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved
    54. 54. Identity, the organizational phenomenon The science (emerges) Confidential Information © 2008 The Identity Circle. All rights Reserved
    55. 55. The Logic (is radical) Does this “logic” make sense? Confidential Information © 2008 The Identity Circle. All rights Reserved
    56. 56. And the effects of identity strength can be exponential.
    57. 57. The Science (emerges) What are the possibilities the “science of identity” holds? Confidential Information © 2008 The Identity Circle. All rights Reserved
    58. 58. The Roadmap (unfolds) Where does this identity “roadmap” lead? Confidential Information © 2008 The Identity Circle. All rights Reserved
    59. 59. <ul><li>What are the rewards – and the risks – associated with this opportunity? </li></ul>The Opportunity (is now) Confidential Information © 2008 The Identity Circle. All rights Reserved
    60. 60. <ul><li>“ Value”… </li></ul><ul><li>  </li></ul><ul><li>The proprietary contribution one is capable of making: </li></ul><ul><li>  </li></ul><ul><li>In the marketplace </li></ul><ul><li>In the world </li></ul>The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved
    61. 61. <ul><li>Status quo (assumptions) </li></ul><ul><li>Awareness </li></ul><ul><li>Framework </li></ul><ul><li>Tools </li></ul><ul><li>Metrics </li></ul>The Logic (is radical) Confidential Information © 2008 The Identity Circle. All rights Reserved

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