Laws Of Leadership

21 Irrefutable Laws of Leadership

SUCIPTO [email protected] & Talent ManagementConsultant

JOHN C MAXWELLJOHN C. MAXWELL♦ Internationally recognized♦ Internationally recognized

leadership expert, speaker, and author who has sold over 13 million books.

♦ founder of Maximum Impact Inc. Injoy Stewardship Services and EQUIP.

♦ Every year he speaks to Fortune 500 companies

THIS BOOKTHIS BOOK …

♦About personal interpersonal and♦About personal, interpersonal and organizational leadership.

C i l lif l f l d hi♦Contains real life examples of leadership principles that are easily transferred to any

k iwork environment. ♦Easy to read. ♦The concepts had a lot of depth but

insightful.g♦ I call it the “Foundational book on leadership”

LEADERSHIPLEADERSHIP

♦Leadership is influence; without influence♦Leadership is influence; without influence one cannot lead.

♦ Influence =“The ability to get followers”♦ Influence =“The ability to get followers” ♦ Influence to self, others, group,

i i bi iorganization, bigger community♦ “He who thinks he leads, but has no

followers, is only taking a walk.”

5 LEVEL OF LEADERSHIP5 LEVEL OF LEADERSHIPFollow because they ADORE you

PERSONHOODPERSONHOOD

PEOPLE PEOPLE DEVELOPMENTDEVELOPMENT

Follow because they BELIEVE in you

PRODUCTIONPRODUCTION

Follow because PERMISSIONPERMISSION

Follow because they LIKE you

they TRUST in you

POSITIONPOSITION

Follow because they HAVE TO

21 Irrefutable Laws of Leadership

INTRODUCTIONMaxwell states Good & Bad News for all to hear:1 The laws can be learnedThe laws can be learned1. The laws can be learnedThe laws can be learned.

– Some are easier to understand and apply than others, but every one of them can be acquired.

2. Can stand alone. Can stand alone. – Each law compliments all the others, but you don’t need one in

order to learn another.order to learn another.

3. Carry consequences with themCarry consequences with them. – Apply the laws, and people will follow you. Violate or ignore

them, and you will not be able to lead others.

4.4. Can waste your timeCan waste your timeOnce you learn the principles you have to practice them and apply– Once you learn the principles, you have to practice them and apply them to your life otherwise it useless.

THE 21 IRREFUTABE LAWS OF LEADERSHIP (2008 Revised)

♦ The Law of Addition

♦ The Law of♦ The Law of Picture

TODAY SESSIONTODAY SESSION

The Law ofThe Law of The Law of The Law ofThe Law of The Law of the Lidthe Lid

The Law of Process

The Law of Navigation

The Law of Inner Circle

The Law of EmpowerInner Circle Empower

1 Law of the Lid1. Law of the Lid Leadership ability determines

l d l l l fpersonal and organizational level of effectiveness

1. Law of the Lid Leadership ability determines personal and organizational level ofLeadership ability determines personal and organizational level of effectiveness

Point of the Principle on the Lidp♦ An organization will never surpass the capabilities of its

leaders. ♦ If the leadership is strong, the lid is high♦ The lower an individual's ability to lead, the lower the lid

on his potentialon his potential. – if your leadership were an 8, your effectiveness can never be

greater than a 7. Your organization will never grow more than the 7– Your organization will never grow more than the 7

– Because you are the lid.

♦ The Lid represents the limit of our leadership abilities.

EXAMPLEEXAMPLE♦ Ray Kroc Vs Dick & Maurice McDonald y

bersaudara.– 1952, Mcdonald failed to expand their product with

Franchise Model.– From 15 investors only 10 opened the restaurant.– Their genius was in kitchen operational excellence

1955 Kroc had global vision decided to make an– 1955, Kroc had global vision, decided to make an agreement with them and setup McDonald’s System Inc & Hamburger University

– He brought the Master Franchise License at 1961– He brought the Master Franchise License at 1961– In 4 years Korc succeed to open 100 restaurant and 4

years later 500 outletToday Mcdonald has 21 000 outlets in 100 countries– Today Mcdonald has 21,000 outlets in 100 countries.

SUCCESS WITHOUT EFFECTIVE LEADERSHIP

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Effectivity

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SUCCESS WITH EFFECTIVE LEADERSHIP

The Lid :

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ApplicationApplication♦ Plenty of smart, talented, successful people are limited by y , , p p y

their leadership ability. ♦ If you want to reach new level of effectiveness in your job

i ti i lidor organization, raise your lid. – Paradigm– Attitude– Habits– Capabilities (Knowledge & Skills)– Resources (People/leaders Time & Money)Resources (People/leaders, Time & Money)

♦ If you want to grow your company, uplift your lid

Questions for ReflectionQuestions for Reflection . . .

♦What are the leadership lids in my life?♦What are the leadership lids in my life?♦How will I lift those lids? What do I need

to do?to do?♦Who are the potential leader in my

i i h ld I ?organization should I groom?♦How do I groom them into effective

leader?

2 L f P2. Law of ProcessLeadership develops dailyLeadership develops daily, not in a day.

2. Law of ProcessLeadership develops daily, not in a day.

♦ Leadership is not a one day thing; it's an every day thing.p y g; y y g♦ It's the disciplined, consistent effort to improve a little bit

each day that reaps great harvests over a lifetime.♦ Do not expect the “Microwave” Leadership ♦ Even when someone is gifted with natural abilities, one

still has to build one’s collection of leadership skillsstill has to build one s collection of leadership skills.

ExampleExample♦ Abraham Lincoln♦ Abraham Lincoln

– From poor family President

♦ Jimmy Carter is one of the leaders who developed♦ Jimmy Carter is one of the leaders who developed through time. – Awarded Nobel Peace Prize 2002 – Worldwide respect as leader of the Habitat for

Humanity organization.

Al G d f d b B h i P id♦ Al Gore – defeated by Bush in Presidency Election

Awarded Nobel Peace Prize 2007 persistency in– Awarded Nobel Peace Prize 2007– persistency in raising the Global Warming Issue

THE FOUR PHASES OF LEADERSHIP GROWTH:♦ Phase 1 – Unconscious - Incompetence♦ Phase 1 Unconscious - Incompetence♦ Phase 2 - Conscious - Incompetence

h 3 C i C♦ Phase 3 - Conscious- Competence♦ Phase 4 - Unconscious- Competence

GROWTH MOVEMENTGROWTH MOVEMENT

son

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Co

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Comfort Zone

CompetenceIncompetence

Unc

Comfort Zone

CompetenceIncompetence♦To lead tomorrow, learn Today ;Yesterday success not equal with tomorrow success

ApplicationApplication♦ It is easy to see the end result, but is hard to♦ It is easy to see the end result, but is hard to

experience the process. ♦ We are all must willing take small baby steps day g y p y

after day, to reach our ultimate goal.♦ Successful leaders should be learners--

continuously improving and building up on previously developed skills

♦ “If we now can lift the burden we once were♦ If we now can lift the burden we once were not able to, it doesn’t mean the burden is lighten but rather because our muscle haslighten, but rather because our muscle has grown and developed”.

Theodore Roosevelt-Theodore Roosevelt

Questions for ReflectionQuestions for Reflection . . .

♦ In my growth as a leader what lessons does♦ In my growth as a leader, what lessons does God continue to remind me about, and drill into me?into me?

♦What have I had to un-learn and re-learn?Whi h h I i i♦Which phase am I experiencing now, as a leader?

♦What could I do to achieve the better phase?

3. Law of NavigationAnyone can steer the ship, but itAnyone can steer the ship, but it takes a leader to chart the course.

ConceptConcept♦ The Law of Navigation is♦ The Law of Navigation is

– about seeing the trip ahead, – charting a plan to get to the destination,

d i i f d h i i– and remaining focused on the vision.

♦ A navigator starts with a vision,d th k h t it t k t h th t i i♦ and then knows what it takes to reach that vision,

♦ who they will need on the team, andh b l i i d♦ what obstacles to anticipate and overcome.

♦ Navigators balance optimism with realism♦ Preparation is the key to good navigation

ExampleExample♦ Robert F. Scott VS. Roald Amundsen (1912)♦ Robert F. Scott VS. Roald Amundsen (1912)♦ Norwegian explorer aiming to be the first group

to reach the South Pole. – Amundsen succeed– Scott failed & faced fatal consequences, he & his team

died in the way back to the home base.

Scott Amundsen♦ Logistic- his team to carry

them along, depots not id d ith i d

♦ Logistic – all need supplies put in the depots l hi l d tprovided with required

supplies, no clear sign.♦ Transporter- motor

along his planned route with clear sign

♦ Transporter- Special ♦ a spo te otomachines and horses

♦ Journey- miserable ; did h i ld

♦ a spo te Spec atrained dogs

♦ Journey – make sure his b i hnot have appropriate cold

clothes , bring 60 kg geologist specimen

team not bring too much burden and too tired- 6 hours or 15-20 mil/dayg g p y

ApplicationApplication

♦The leader is the one who sees more detail♦The leader is the one who sees more detail and farthest into the future ,

♦He is the best person to guide his followers♦He is the best person to guide his followers. ♦The size of the project does not matter.♦ The size of the leaders and the ability to

navigate determine the accomplishment of a mission.

♦Visioning, detail planning, measuring, g, p g, g,deploying. & adjusting is the leader’s job

G d l dGood leaders

♦ Know the way

♦Show the way

♦Go the wayy(Measure & Adjust)

Questions for ReflectionQuestions for Reflection . . .♦ What challenges will my department face in the

nearest future?nearest future?♦ What new capabilities and resources we need to

acquire in order to deal with the challengesacquire in order to deal with the challenges effectively?

♦ What is the detail strategy and plan in building the♦ What is the detail strategy and plan in building the required capabilities and resources?

♦ What project or assignment in my unit should be♦ What project or assignment in my unit should be planned better in advanced?

♦ How do we know we are in the right track and gimprove it accordingly?

4 THE LAW OF INNER4. THE LAW OF INNER CIRCLE :A L d ’ P t ti l i D t i dA Leader’s Potential is Determined by Those Closest to Him

THE LAW OF INNER CIRCLE :A Leader’s Potential is Determined by ThoseA Leader s Potential is Determined by Those Closest to Him

♦The strength of the people around a leader determines that leader’s potential.

♦No matter how good a leader is, that person has limits.

♦His Inner Circle expands his abilities.p

ExampleExample

♦ Q : Have you ever wonder why a lot of♦ Q : Have you ever wonder why a lot of world records were broken in the Olympic competition?competition?

♦A : When the “Best” was challenged by the “Best” the potential was unleashed andBest , the potential was unleashed and pushing them forward to achieve the higher level performancelevel performance.

Roger Bannister & 1 Mile ChallengeRoger Bannister & 1 Mile Challenge

THE LAW OF INNER CIRCLETHE LAW OF INNER CIRCLE♦ Before 1954 no one can run 1 mile > 4 min♦ Before 1954, no one can run 1 mile > 4 min.♦ May 16, 1954 Bannister broke the 4 min.

record (3:59:4)record (3:59:4)♦ 46 days later a different runner broke his

recordrecord.♦ 1957 (3 year later), 16 runners broke the 4

min recordmin. record.♦ 2008, 955 runners can break the record more

than 4700 timesthan 4700 times

Example 4 E + PExample♦ Jack Welch =

♦ 4 E + P♦ Energy

i♦ Jack Welch – Cathcart– Dennis Dammerman

♦ Energize♦ Edge

– Peter F. Drucker, – Jeff Imlett

♦ Execute♦ Passion

– Bob Nardeli, – Jim McNerney,

S W l h– Suzy Welch

♦ GE – 1980 = $ 13 Billion2001 $ 400 Billi2001 = $ 400 Billion

ApplicationApplication

♦When leader surrounded himself with♦When leader surrounded himself with followers, the growth rate is one person at a timetime.

♦But when leaders surrounded himself with leaders who will develop leaders growth isleaders who will develop leaders, growth is multiplied, and the highest possible level of success is achievedsuccess is achieved.

ApplicationApplication♦ A leader’s role, then, is to surround himself with♦ A leader s role, then, is to surround himself with

right people. ♦ Get connected with better leaders from yourself y

and learn from them♦ Hires the right people. g p p

– Develops them.– Listens to them

♦Get coached or mentored by the right person p

♦ Read the right book

When choosing your INNER CIRCLE, look for the following qualities:

INFLUENCIALNURTURING

CHARACTERINTUITIVE

NETWORKEREMPOWERING

RESPONSIVECOMPETENTEMPOWERING

RESOURCEFULCOMPETENTLOYALENERGETIC

Questions for ReflectionQuestions for Reflection . . .

♦Who makes up my inner circle?♦Who makes up my inner circle?

♦What quality they are representing of?

♦How am I stronger because of them?

♦Who else needs to be in my inner circle for it to be complete?

5 Law of Empowerment5. Law of Empowerment Only secure leaders give power to others.

CONCEPTCONCEPT♦ The people’s capacity to achieve is determined by♦ The people s capacity to achieve is determined by

their leader’s ability to empower ♦ Good leader :

– Finds other leaders; – Builds them up; – Gives them resources, authority, and responsibility; – And then lets them go off to achieve.

♦ The opposite situation : – When a leader undermines his team members

b i h l i hi– Creates barriers that people in his team cannot overcome, are violations of the Law of Empowerment.

Dis-empower Leader♦ Henry Ford : the antithesis of the empowering leader. ♦ Built the Model “T“ but not want to change or improve it

Dis-empower Leader♦ Built the Model T but not want to change or improve it.♦ Even with all its success, Ford consistently undermined his

executives and nearly killed the company.♦ Ford’s grandson, Henry Ford II, a Navy man, returned to

the company Became president of Ford Motor Company– Became president of Ford Motor Company.

– Loss in fifteen years (- $ 1 Million day). – Hired a group of men and turned the company around.Hired a group of men and turned the company around. – But like his grandfather, Henry Ford II undermined the

leadership of the company executives.– Tex Thornton, Ernie Breech, Lewis Crusoe (GM) were

encouraged to attack and humiliate each other

♦ Ford to Iacocca (President of Ford Co ):♦ Ford to Iacocca (President of Ford Co.):♦ “ If someone work for you , don’t let him

become secure Do what they expect you tobecome secure. Do what they expect you to do but let them always worry and unbalanced ”unbalanced.

ExampleExample♦ Market: (1) General Motor (2) Ford (3) Chryslers

Fi d f F d hi d b Ch l CEO♦ Fired from Ford, hired by Chryslers as CEO♦ Chryslers was bleeding♦ Priority he made :♦ Priority he made :

– Cost Cutting (Incl. 25 % of his salary)– Empower the R&D $ 300 Million (no cost cutting)

♦ Result : Produce “K-Car” saved gasoline♦ 1974- Gasoline Price Increased

“K C ” b i♦ “K-Car” was booming♦ Chryslers got turnaround

♦ Ford♦ Ford – Reactive : to beat Chryslers produced “Ford

Pinto”Pinto– Gasoline tank was covered with thin platform

Accident happened to Ford Pinto they– Accident happened to Ford Pinto, they frequently exploded.

– Cynical saying: “If you are bored with your lifeCynical saying: If you are bored with your life take then take the Pinto.”

– Ford Pinto was a big problem to FordFord Pinto was a big problem to Ford– Spoiled its great brand

ApplicationApplication♦ If a leader does not empower others, he has♦ If a leader does not empower others, he has

become the lid in the organization/unit.♦ If the lid did not being lifted, people will either

give up (passive) orgive up (passive) or ♦ move to where they can maximize their potential

and worse you produce irrelevant solution to your customer.

♦ Empowering people also empowers the leader. ♦ The leader will achieve much more, and becomes

a better leader in the process.

Questions for Reflection . . . Q♦How well do I empower others? How do I

do it?do it?♦When I fail to empower others, how much

d it h t d ith i itidoes it have to do with my own insecurities as a leader?

♦What have been empowering experiences in my life?

♦How can I better empower those who work beside me?

SUCCESS WITH EFFECTIVE LEADERSHIP

The Lid :

109

10 100 21,000 outlets

875y

to L

ead

432T

he A

bilit

y

21

1 2 3 4 5 6 7 8 9 10

Effectivity

T

1 2 3 4 5 6 7 8 9 10Dedication Toward Success

CONCLUSIONCONCLUSION

The Law ofThe Law of The Law of The Law ofThe Law of The Law of the Lidthe Lid

The Law of Process

The Law of Navigation

The Law of Inner Circle

The Law of EmpowerInner Circle Empower

CONCLUSIONCONCLUSION♦ Bad News -Lid: Everyone has a lid that limit her/his y

leadership effectiveness.♦ Good News - Process: Everyone could grow and lift up

h i lid (li i i )their lid (limitation).♦ Navigation Challenge: To uplift your lid do the

planning, measuring and adjusting.planning, measu ing and adjusting.♦ Inner Circle Challenge: The person you always listen to

they could be the lid of your effectiveness.♦ Empowerment Challenge : To optimize your lid learn to

develop leaders not just followers in your team; work smarter not just harder.smarter not just harder.

NOWNOW IT’S THE TIMEIT S THE TIME TO LEADSUCIPTO [email protected] & Talent ManagementC lt tConsultant