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KEN SHELTON

Downpour of IdeasTo develop leaders,

you need great ideas . . . .3

WARREN BENNIS

Authentic LeadersPower follows ideas,

not positions . . . . . . . . . . .3

ELIYAHU M. GOLDRATT

Viable VisionIn four years, net

what you now earn . . . . .4

CLAYTON M.CHRISTENSEN

Assess Your CapabilitiesIs the organization

up to the task . . . . . . . . . .5

DAVE ULRICH

Change How YouChangeYou first must change

your identity . . . . . . . . . . .6

JUDITH GLASER ANDNANCY SNELL

Diminishing FearReducing fear has a

bottom-line payoff . . . . . .8

MICHELLE GALL

Capitalize on TalentAvoid the herd instinct

and confusion . . . . . . . . . .9

IRA CHALEFF

Creating PartnersYou really dont want

subordinates . . . . . . . . . .10

NOELLE NELSON

Culture of AppreciationEnsure your assets

appreciate in value . . . . .11

GERARD A. ABRAHAM

Strategic AlignmentEffective execution is

your top priority . . . . . .12

BENJAMIN SCHNEIDER

Customer SatisfactionEmployee engagement

is the key variable . . . . .13

PAUL MCKINNON

Create a GreatPlace to Work

Its the aim ofdeveloping leaders . . . . .14

GLENN BROME

Facilitative LeadershipMaster these skills

to contribute more . . . . .15

TODD PACKER

Think Inside the BoxChoose the right box

and play the game . . . . .16

MICHAEL GOLDMAN

Facile FacilitationHelp your team to

explore options . . . . . . . .17

DANIEL CHRISTMAN

Ike: First in LeadershipLearn how to lead

a coalition of allies . . . . .18

ABHAY PADGAONKAR

Looking in the MirrorExecution is all about

aligning people

and priorities . . . . . . . . .19

CHRISTINE ARENA

High PurposeImprove performance

through purpose . . . . . .20

THE MAGAZINE OF LEADERSHIP DEVELOPMENT, MANAGERIAL EFFECTIVENESS, AND ORGANIZATIONAL PRODUCTIVITY

V OL. 23 NO. 8 A UGU ST 2006

LEADERSHIP

Excellence

High PurposeComing back from the brinkof extinction, the bald eagle

embodies the spirit of courageand freedom that characterizesauthentic leadersthose who

have a viable vision, appreciate

assets, capitalize on talent, alignresources, execute priorities, andcreate a great place to work.

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AT T HE A NNU AL C ON FE R-ence of the Society forHuman ResourceManagement (SHRM) held

in Washington DC. during four days oftorrential downpour in June, I met withabout 15,000 of my closest friends to hearColin Powell and David McCullough,among others, underscore the importanceof authentic leadership.

So, as I greeted people, I asked them,What do you do in the area of leadershipdevelopment?

Sadly, even shockingly, some HR direc-tors admitted that they do nothing (ornext to nothing) to develop the leadershipcapabilities of their peopleno program,process, plan, model, map, or mindset.

At the openingGeneral Session, GeneralColin Powell said thatleadership makes all thedifferenceon the battle-field and in the work-place. He urged HRprofessionals to create anenvironment where peo-

ple are inspired, not just motivated orengaged. Leadership is getting 110 per-cent out of your relationshipsit is the artof accomplishing more than the science ofmanagement says is possible.

Historian and best-sell-ing author David

McCullough said that thespirit of 1776 is needed in2006. In addressing theadventures of GeorgeWashington, he taughtlessons on leadership.The great men and

women of history lived inthe present, he said. They had no ideahow things would turn out. Their lives pro-vide us with lessons and standards for mea-suring our own courage, patriotism, andleadership. As leaders, we need a sense ofhistorya sense of who we are, where wecame from, and what it took to get us here.

SHRM chairJohnnie Taylorand presi-dent Sue Messsingertalked about thecourage needed by leaders as they facesuch challenges as rising health care costs,diversity, change, and competitionchal-

lenges met by another speaker, formerIBM CEO Louis V. Gerstner Jr.

Leadership Excellence

Whatever you do in the area of leader-

ship developmentwhether you now do

next to nothing or you have a world-classprogram in place.I invite you to experi-ence excellenceby making LeadershipExcellence an important part of yourdevelopment process.

Any great leadership development pro-gram or process starts with great ideasand ensures the timely application oftimeless principles. I invite you to makeour Instant Consultant CD archive andplan the foundation of your program. Togain access to these leadership tools, visitour website www.LeaderExcel.com. LE

M y e x p e r i e n c e a t S H R M i n D . C .

by Ken Shelton

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Leadership Excellence (ISSN 8756-2308), pub-lished monthly by Executive Excellence Publishing,1806 North 1120 West, Provo, UT 84604.

Article Reprints:For reprints of 100 or more, please contact theeditorial department at 801-375-4060 or sendemail to [email protected].

Internet Address: http://www.eep.com

Editorial Purpose:Our mission is to promote personal and organi-zational leadership based on constructive values,sound ethics, and timeless principles.

Editorial:All correspondence, articles, letters, and requeststo reprint articles should be sent to: EditorialDepartment, Executive Excellence, 1806 North1120 West, Provo, Utah 84604; 801-375-4060, [email protected]

Contributing Editors:

Chip Bell, Dianna Booher, Kevin Cashman,Jim Loehr, Norm Smallwood, Joel Barker, JosephGrenny, Jim Kouzes

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publisher. Quotations must be credited.

Downpour of Ideas

E . D . I . T . O . R S N . O . T . E

2 L e a d e r s h i p E x c e l l e n c e

JohnnieTaylor

SueMesssinger

Louis V.Gerstner Jr.

LEADERSHIPDEVELOPMENT

PLAN

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And so, leaders will have to rewardpeople who have the best ideas. In

tough times, second-rate leaders canexercise power recklessly withimpunity. In good times, leaders musttreat their people not as underlings,but as colleagues and collaborators.

One dreadful trend of the 1990swas the emergence of celebrity CEOs.Americans tend to see their institu-tions as the lengthened shadows ofgreat men and reward charismaticleaders out of proportion to their con-tribution. The disappearance of themiddle class, made up of people whobelieve that loyalty and hard work

will bring security and a comfortablestandard of living, may be themost important economic story ofthis new century. And unless the

current trend toward morewealth in fewer hands

is reversed, itcould be a grimstory indeed.

One thing thathas become clearto me is thatintegrity is themost important

characteristic ofleadersand onethat they mustdemonstrate againand again. Toomany leaders for-

get that they are under scrutiny andcan be called to account at any time.They forget that just because some-thing is legal doesnt mean its rightand that what the public gives, it canlater take away. Scandals have a dev-astating effect. Trillions of dollars ofwealth were destroyed by men who

walked away with princely severancepackages.

Where does this leave todays lead-ers? People are now demanding moregenuine performance of their leaders.Leaders will likely receive less moneyand more scrutiny. That will probablybe a good thing. Everything we learnabout creativity suggests that money ismore often an obstacle than an incen-tive. Modest leaders concentrate moreon the intrinsic rewards of doing goodwork and recognize that their role has

Authentic Leaders

IN S O M E W A Y S ,everything is differ-ent now from how it

was even 20 years ago. Indeed, in TheLexus and the Olive Tree, Thomas. L.Friedman writes: The world is only10 years old. The World Wide Webprovides the most dramatic example.In 1989, the Internets 400 earlyadopters predicted that it would revo-lutionize how people communicate,but even they could not imagine howpervasive it would become.

Technology has done what ideolo-gy could notcreate a worldwidecommunity. Even if the Berlin Wallhad not fallen in November 1989, theability of people worldwide to effec-tively communicate elec-tronically would bringdown all the walls thatonce separated nations.But even as technologyhas facilitated theexchange of ideas andmade the world small-er, it has not made it

peaceful. Instant com-munications has facili-tated the rise ofreligious fundamental-ism in a form thatdemonizes nonbeliev-ers and puts the most up-to-date tech-nology to medieval use. We live in aworld where a woman can be stonedto death for adultery, and everyonecan watch it on satellite TV.

The world has also undergone eco-nomic transformation. China hasembraced entrepreneurism and other

forms of capitalism. And theEuropean Union is now a realityreplacing the franc and DeutscheMark with the Esperanto of curren-cies, the euro. In the United States, theNew Economy emerged, soared, andcrashedfueled by intellectual capi-tal. The days are gone when the mostimportant assets are buildings andequipment; ideas are now the curren-cy of the global economy.

For leaders, the take-home lesson isthat power follows ideas, not position.

a moral dimension that is just asimportant as fattening the bottom line.

More people need to ask: What isour purpose, beyond creating valuefor stakeholders? Today, we see theorganization as a community wherewe spend much of our lives and wehunger for greater balance betweenwork and personal life. Even as we areshackled by our pagers and cell phones,

we long for work that seems meaning-ful enough to justify missing out onbig chunks of our childrens lives.

Leaders need to create meaningfulrewards and humanize the workplace.It would be tragic if scandals causebusiness to be perceived as an unwor-thy calling. Our attitudes toward lead-ers are cyclical. We tend to lavishdisproportionate attention and praiseon them for a time, to treat them likeroyalty, only to turn on them at somepoint and treat them like devils.Neither extreme is true. For every

ousted CEO, there are thousands ofable, honorable leaders.

Great leaders cultivate cultures ofcandor. Historically, dissenters arerarely embraced. Yet no one is morevaluable than the person who speakstruth to power. Organizations some-times go to absurd, even immoral,lengths to ignore bad news. Butauthentic leaders embrace those whospeak valuable truths, however hardthey are to hear. Nothing sinks leadersfaster than surrounding themselveswith yes-men and -women. Even when

principled nay-sayers are wrong, theyforce leaders to reevaluate their posi-tions. Good ideas are made strongerby being challenged. Those who speaktruth to power need courage, and maypay the price for candor.

Great leaders and followers arealways engaged in a creative collabo-ration. We still tend to think of leaders,like artists, as solitary geniuses. In fact,the days are gone when a single indi-vidual, however gifted, can solve ourproblems. Today we need groups oftalented people to tackle complex

problems, led by gifted leaders.To lead a Great Group, leaders need

not possess all the skills of the mem-bers. What they must have are vision,the ability to rally the others, integrity,and superb curatorial and coachingskillsan eye for talent, the ability torecognize correct choices, contagiousoptimism, a gift for bringing out thebest in others, the ability to facilitatecommunication and mediate conflict, asense of fairness, and an authenticityand integrity that creates trust.

by Warren Bennis

L e a d e r s h i p E x c e l l e n c e 3

Leadership Authenticity

En g a g e mo r e i n c r e a t i v e c o l l a b o r a t i o n .

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Leadership often emerges after someright of passage or crucible. Somemagic takes place in the crucible,whether the transformational experi-ence is an ordeal, like Mandelas yearsin prison, or an opportunity, like beingmentored. Whatever is thrown atthem, leaders emerge from their cru-cibles stronger and with new skills. Nomatter how cruel the testing, theybecome more optimistic and open.

All leaders have four essential com-petencies. First, they engage others bycreating shared meaning. They have avision, and persuade others to makethat vision their own. They are richlyendowed with empathy, attuned totheir followers, and feel their pain,wants, and needs. Second, authenticleaders have a distinctive voicepurpose, self-confidence, a sense ofself, and emotional intelligence. Third,true leaders have character or integri-tya strong moral compass, a power-ful belief in something outside

themselves. Fourth, leaders have theadaptive capacity to respond quicklyand intelligently to relentless changeto act, before all the data is in, andthen assess the results, correct course,and quickly act again. Their adaptivityincludes resilience or hardinessakind of creativity that enables them toidentify and seize opportunities.

As I watch people become leaders, Iam struck by how effectively somepeople recruit the mentors they need.This ability is more complex than net-working. It is the ability to spot those

people who can make all the differ-ence in your life and get them on yourside. In recent years, Ive seen theprocess from the mentors side, as tal-ented younger people draw me intotheir lives and make me care aboutthem. Mentoring is a reciprocal dancethat benefits both parties.

The process of becoming a leader isthe same process that makes a persona healthy, fully integrated humanbeing. Timeless leadership is alwaysabout character and authenticity.William James said, The best way to

define a mans character is to seek outthe particular mental or moral attitudein which, when it came upon him, hefelt himself most deeply and intensive-ly active and alive. There is a voiceinside which speaks and says, This isthe real me. Finding and nurturingyour authentic self is the sure way ofbecoming a leader. LE

Warren Bennis is founding chair of The Leadership Institute atthe University of Southern California, author of 27 books, con-sultant, and speaker. [email protected].

ACTION: Nurture your authentic self.

by Eliyahu M. Goldratt

is that what is done in one place hasramifications in other places; thecause-and-effect relationships turn oursystem into a maze. But that fact alsoprovides the key to the solution.

Examine a system and ask, what isthe minimum number of points wemust impact to impact the whole sys-tem? If the answer is 10 points, thisis a difficult system to manage because

it has too many degrees of freedom.But, if the answer is one point, thissystem is easy to manage.

Now, the more interdependenciesbetween the components of the sys-tem, the fewer degrees of freedom thesystem has. Considering the complexi-ty of your system, only a few elementsgovern the entire system. The morecomplex the system, the more pro-found is its inherent simplicity.

To capitalize on the inherent simpli-city, we must identify those few elementsthat govern the system. And, if we

clarify the cause-and-effectrelationships among all ele-ments of the system, wecan manage the system toachieve higher performance.

The few elements dictat-ing the performance of thesystem are the constraintsor leverage pointstheTheory of Constraints (TOC).

About 20 years ago Idemonstrated the TOCapproach on production

systems in my book The Goal, and then

on project-based systems in CriticalChain. The marketing and strategy ofcompanies is in Its Not Luck. If youread these books, youll agree that theconclusions are common sense, eventhough they fly in the face of commonpractice. Moreover, if you put it intopractice, you experience impressiveimprovements in a short time.

Is a viable vision possible for yourcompany? Is it feasible to have, withinfour years, yearly net profit equal to itscurrent yearly sales? The obstacles aredaunting. For example, such prof-

itability is impossible without a hugeincrease in sales, and this is doableonly if you have a remarkable newoffer accepted by your markets. Cansuch an offer exist? Can you deliver onsuch an offer? What investments willbe needed? And, is your team capableof implementing such a change?

Yes, if you follow my proposal. LE

Eliyahu M. Goldratt is an educator, scientist, philosopher,business leader, and author ofThe Goal. www.goldratt.com.

ACTION: Create a viable vision.

WHEN I ANALYZE Acompany, I amsomewhat satisfied

only when I clearly see how it is possi-ble to bring the company to have,within four years, annual net profitequal to its current total sales. Thatswhat I mean by a viable vision.

Im careful when sharing thisexpectation with the top management;I expose the reasons why I believe thisvision is viable. I share my diagnosis

of what is blocking perfor-mance. Using logic, Ideduce the steps that willremove that block. Then Idetail the steps to take tocapitalize on that break-through. In this way, thereaction of top managers is:This is common sense.Why arent we doing it?

Any complex system isbased on inherent simplici-ty. Capitalizing on theinherent simplicity enables incredible

improvements within a short time.The more data needed to fully de-

scribe a system, the more complex it is.How complex is the system you

manage? How many pages are neededto describe every process and the rela-tionships with each client? Most com-panies, even small ones, are complexand thus difficult to manage.

We manage a complex system bydissecting it into subsystems that areless complex. However, this can leadto miss-synchronization, harmful localoptima, and the silo mentality. Since

our systems are complex, we mightthink that all we can do is to improvesynchronization and foster collabora-tion between the subsystems. If this isthe only option we consider, wellbelieve that achieving a major jump inprofit within a short time is a rarity.Well think that creating net profitequal to current total sales in less thanfour years is unrealistic.

To see the potential of a company,we need to realize that the thing thatmakes our system difficult to manage

ViableVisionNet your current sales.

Leadership Vision

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tively identify resources. Yet resourceanalysis does not tell a sufficient story.

Processes. Organizations createvalue as people transform resourcesinto products and services of greaterworth. The patterns of interaction,coordination, communication, anddecision-making are processes. Theyinclude those by which product devel-opment, procurement, research, bud-geting, manufacturing, employeedevelopment and compensation, andresource allocation are done. Processesevolve to address tasks. When man-agers use a process to execute thetasks for which it was designed, it is

likely to perform efficiently. But whenthe same process is employed to tacklea different task, it is likely to proveslow and inefficient. Processes are

inherently inflexible, meant not tochangeor if they must, to changethrough controlled procedures. Values. Values carries an ethical con-

notation; however, values have abroader meaning as the criteria bywhich people make decisions aboutprioritieswhether an order is attrac-

tive or unattractive, whether a cus-tomer is more important or lessimportant, whether an idea for a newproduct is attractive or marginal,whether to invest or not invest in newproducts, services, and processes.Managers need to train people tomake decisions about priorities thatare consistent with the strategic direc-tion, business model, and clear values.

As companies add features andfunctionality to their products and ser-vices to capture more attractive cus-

Assess Your Capabilities

THE PACE OF CHANGEis accelerating, andthe information avail-

able to managersas well as thework and judgment required to sortthrough itis increasing dramatically.The Internet exacerbates this trends.

This is scary newsbecause whenthe pace of change was slower, mostmanagers track records in dealingwith change werent so good. Seeinginnovations coming wasnt the prob-lem. Organizations just didnt react to

what their employees and leaders sawin a way that enabled them to keeppace with required changes.

When managers assign employeesto tackle a critical innovation, they tryto match the requirements of the jobwith the capabilities of the individualscharged to do it. In evaluatingwhether people are capable of execut-ing a job, managers will look for therequisite knowledge, judgment, skill,perspective, and energy. They mayalso assess the peoples valueshowthey decide what should be done.

Few think as rigorously aboutwhether their organizations have thecapability to successfully execute jobs.

Managers need a framework tohelp them understand whether theirorganizations are capable or incapableof tackling the challenge.

Capabilities Framework

Three factors affect what an organi-zation can do: resources, processes,and values. When asking what inno-vations youll implement, you learnabout your capabilities by sorting

your answers into these categories: Resources. Resources include peo-

ple, equipment, technology, productdesigns, brands, information, cash,and relationships with suppliers, dis-tributors, and customers. Resourcesare usually things or assetsthey canbe hired and fired, bought and sold,depreciated or enhanced. Resourcesare valuable and flexible. Cash, forexample, is a very flexible resource.When assessing whether they canimplement changes, managers instinc-

tomers in premium markets, theyoften add overhead cost. As a result,gross margins that at one point wereattractive later seem unattractive.Their values change. Hence, as compa-nies grow, they tend to lose the capa-bility to enter emerging markets.

Sustaining or Disruptive Technologies

Sustaining technologies are innova-

tions that make a product or servicebetter along the dimensions of perfor-mance valued by customers in themainstream market. Disruptive inno-vations bring to market a new productor service that is actually worse alongthe metrics of performance most val-ued by mainstream customers.

Industry leaders introduce sustain-ing technologies over and over again.As they introduce improved productsto gain a competitive edge, they devel-op processes for evaluating thetechnological potential and assessing

their customers needs for alternativesustaining technologies. This capabili-ty resides in their processes.Sustaining technology investmentsalso fit the values of the leading com-panies, in that they promise highermargins from better products sold totheir leading-edge customers.

Disruptive innovations occur so sel-dom that no company has a routineprocess for handling them. And,because the disruptive productspromise lower profit margins per unitsold and cant be used by their best

customers, these innovations areinconsistent with the values. The com-panies have the resourcesthe people,money, and technologyto succeed atboth sustaining and disruptive tech-nologies. But their processes and val-ues constitute disabilities.

Large companies often surrenderemerging growth markets becausesmaller, disruptive companies aremore capable of pursuing them.

Managers who face the need tochange or innovate need to do morethan assign the right resources to the

problem. They need to ensure that theorganization in which those resourcesreside is capable of succeedingandin making that assessment, managersmust scrutinize whether their process-es and values fit the problem.

Creating Capabilities

A manager who determines that anemployee is incapable of succeeding ata task would either find someone elseto do the job or train the person.

Processes are not as flexible as re-

by Clayton M. Christensen

L e a d e r s h i p E x c e l l e n c e 5

Change Innovation

You need a framework to avoid wishful thinking.

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sourcesand values are even less so.The processes that make an organi-

zation good at outsourcing cant makeit good at developing components in-house. Values that focus priorities onlarge customers cant focus prioritieson small customers.

Managers who determine that theircapabilities arent suited for a newtask are faced with three options: 1)acquire a different organization whose

processes and values are a close matchwith the new task; 2) try to change theprocesses and values of the organiza-tion; or 3) separate out an independentorganization and develop within it thenew processes and values required tosolve the new problem.

We have never seen a company suc-ceed in addressing a change that dis-rupts its mainstream values absent thepersonal oversight of the CEO. Onlythe CEO can ensure that the new orga-nization gets the required resourcesand is free to create processes and val-

ues appropriate to the new challenge.Assess whether your values will

allocate to the new initiative theresources it will need to succeed. Ifthere is a poor or disruptive fit, thenyou will accord low priority to the pro-ject. However, if there is a strong, sus-taining fit, you can expect that theenergy and resources of the organiza-tion will coalesce behind it.

Managers who are confrontingchange must first determine that theyhave the resources required to succeed.They then need to ask: Does the orga-

nization have the processes and valuesto succeed? Few managers ask this ques-tion because the processes by whichwork is done and the values by whichemployees make their decisions haveserved them well. However, your capa-bilities also define your disabilities. So,ask, are the processes by which workgets done appropriate for this new prob-lem? And will the values cause this ini-tiative to get high priority or languish?

Understanding problems is themost crucial step in solving them.Wishful thinking can set teams

charged with developing and imple-menting an innovation on a coursefraught with frustration. Innovationoften seems to be so difficult becausemanagers employ highly capable peo-ple and then set them to work withinprocesses and values that arentdesigned to facilitate success. LE

Clayton Christensen is a professor of business administrationat the Harvard Business School, and is author ofTheInnovators Dilemma: When New Technologies CauseGreat Firms to Fail and Leading for Innovation.

ACTION: Assess your processes and values.

need to learn and apply six principles.Each one aligns with a question youneed to ask of yourself and your team:

Principle 1: Focus. Question 1:What do I want?Focus on the desirednew identity. A focus sorts, prioritizes,and highlights what matters most. Inchange not everything worth doing isworth doing well. Some things thatare important to do may simply not be

priorities. Some things are so impor-tant to do they are worth doing poorly.Having a focus requires that a leader

may only have limited priorities thatthey personally champion; they cansponsor others, but can only own oneor two. It is better to do a few thingswell than try to do too may thingsand do them poorly. Good is theenemy of great. Leaders need toaddress hard problems; they wontalways make hard decisions correctly.Moving up in leadership means mov-

ing on, trusting others to

do the detail work, select-ing the right priorities,and focusing on whatdelivers the most value.

To determine the focusor priority, ask the simplequestion, What do Iwant? Knowing what iswanted requires reflecti-ing on what could bedone, but then gettingclear about what is want-

ed in the situation. You pass the focustest by reflecting on these questions:

Do I know what matters most to:investors, customers, and employees?Can I define what matters most tome? Do I communicate the same pri-orities in my public presentations andmy private conversations? Do theagendas I follow for meetings reflectthose priorities? Am I clear aboutwhat I can do that no one else can do?Am I clear about what I want to beknown for? What percent of my timedo I spend on things that mattermost? Am I easily distracted? Withoutfocus, you try to be all things to all

people. Then what matters most hap-pens least.

Principle 2: Explore. Question 2:What are my options?Once you knowwhat is wanted, you need to figureout options to get it done. Exploringoptions means looking for alterna-tives; seeking people who havecounter-intuitive ideas; having forumsfor dialogue, innovation, and break-through thinking; not being lockedinto traditional ways; exploring whatothers have done; and experimenting

IN R EC EN T Y EA RS , Ihave lost a lot ofweight. People ask me

how. Most assume that the weightloss, or change, is tied to a diet andthat I will return to my former size.

Most changes, even those that weknow are good and right, do notendure. Best intentions to changebehavior fall short when diets or pro-grams that we depend on to causechange are not assimilat-

ed. Sustained changerequires a new identity.

We need to change theway we think aboutchange. Sustained changemay begin with actions,checklists, and tools, butmust evolve to adopting adifferent identity andassimilating a new way ofthinking and acting.Assimilation requires ashift in thinking and behaving. Itbecomes a new identity where being

and acting occur without thinking.Making change an identity shift is

simple but not easy. It is simple to saywe have to lose weight and we needto eat less, eat right, and exercise more.But, it is not easy to do it. To assuresustained change, weight loss mustcome from a change in identityletting go of an old identity, acceptingpersonal ownership for the new iden-tity, and turning the actions into pat-terns, routines, and habits.

To let an old identity die requiresclarity about what has to change, can-

dor about the need for change, andcourage to make the change happen.When people internalize a newchange, they take ownership for it. Itbecomes part of who they are. Identityshift means that we internalize newprinciples and associated practices sothat actions come naturally.

Six Principles

To make the shift from events topatterns, from actions to identity, orfrom checklists to transformation, you

Change HowYou ChangeO b s e r v e s i x p r i n c i p l e s .

Change Principles

by Dave Ulrich

6 L e a d e r s h i p E x c e l l e n c e

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with new ideas and learning fromthose experiments.

Adopt the mantra: Think big, startsmall, fail fast, learn always. Explorethe options for creating that new iden-tity and examinine each option.

These questions will help you toexplore options: Have I looked insideand outside my industry for best prac-tices and new ideas? Have I tappedinto the expertise to accomplish what I

desire? Have I assigned creative andtalented people to explore options thatmight work and given them resourcesand support to generate ideas?

With focus and exploration, youknow what you want and explorealternative paths to make it happen.

Principle 3: Claim. Question 3:What do I think?Some leaders get lostin the options game. They can see somany ways to do a project that theynever get around to doing it. Theydont claim a choice or decide on asolution. At some point, leaders need

to claim the option that will achievethe focus. Leaders stake, claim, own,and are accountable for their choices.They recognize things that could bedone, but claim the unique combina-tion that works best. They take a standand become known for something.They talk publicly and privately aboutthe direction they are headed and thepath to get there; they put energy andpassion into these paths; they monitorprogress; and they gain or lose credi-bility by the extent to which theyaccomplish their claim. With a focus,

options, and ownership, leaders pass acalendar test of their time, an emotion-al test of their passion and energy, anda resource test of the investmentsrequired to deliver on the option.

To pass these tests, leaders shouldensure that the option is congruentwith personal values. They mustexplain not only why the companywants to do something, but also whythey personally want to do it.

To claim an option requires personal-izing the change and answering thequestion, What do I think? This ques-

tion internalizes an identity. It makesthe identity something that the leaderpetitions and claims. Ponder these ques-tions: Am I clear about the path I willtake to reach my goals? Have I passedthe calendar test? Have I dedicated 20percent of my time in the next 90 dayson the option I have chosen? Have Ipassed the rhetoric test? In everyspeech, do I find ways to talk about theoption and imbue the message withnew metaphors, symbols, and images?Have I passed the passion test? Do I put

my energy into the path I have chosen?Is my direction and path consistent withwhat I believe? Do I feel passion for it?

When leaders declare their desireswith a focus, explore their optionswith insight, and claim their path withboldness, they lead. They set an agen-da, define a path, and engage others.They forge a new identity for them-selves and their organization.

Principle 4: Decide. Question 4:

What decisions do I need to make?Theleader must now decide to makethings happen. Clarity of decisionsleads to lucent actions, while ambigui-ty leads to delayed or random acts.

In the absence of decision, clarityand rigor, actions may be delayed ormisguided. A pattern of decisionsshapes an identity. A leader chooseshow to spend time, who to spend timewith, what information to process,what meetings to hold, and whatissues to address. Through this patternof decisions, she creates an identity.

Being clear aboutdecisions and proto-cols enables leaders toshape an identity.Decisions protocols alsoturn a direction andpath into a set of choic-es. Just as leadershipis a choice, so is theidentity that followsfrom what and howleaders make decisions.

Thoughtful leadersask four questions: 1)

What decisions do Ineed to make? Leaders focus on thefew key decisions they need to make.2) Who will make the decisionandwho is accountable for the decision? 3)When will the decision be made?Work expands to fill the time provid-ed. Deadlines generate commitment toaction. 4) How will we make a gooddecision? This involves knowing thequality level the decision requires,accessing the right information, askingthe right people for input, finding outwhat others have done, testing alterna-

tives, and involving key people. Whenpeople feel heard, they more likelyaccept the decision. When peopleknow the why they accept the what.

As you follow this protocol, youpass the decisiveness and decision test.You not only know what you want,you know the options, which optionworks best, and the key decisions thatwill move the change along and shapea new pattern or identity.

Principle 5: Act. Question 5: Whatactions do I need to take?A new iden-

tity requires new actions. We oftenjudge ourselves by our intent, but oth-ers judge our identity by our actions.Make actions part of the new identity. Start small. Seek small, first steps.

Look for lead customers who mightengage in a new project. Look for earlyadopters of a new idea. Seek a lot ofpeople making small changes. Let go. New identity requires letting

go of old actions consistent with an old

identity. As old actions are replacedwith new ones, others begin to expectthe new identity and its actions. Asactions accumulate, they become pat-terns, and a new identity is forged. Involve others. Change requires a

social support network. Leaders whoact to sustain change will need to sur-round themselves with those whomodel the desired changes. Sustained change takes time. Try this

four 3s methodology: 1) 3 hours:What can I do in the next three hoursto make progress? 2) 3 days: What can

I do in the next threedays to makeprogress? 3) 3 weeks:What can I do in thenext three weeks tosustain progress? And4) 3 months: What canI do in the next threemonths to showprogress? In threemonths, old patternsmay be replaced bynew patterns.

Principle 6: Learn.

Question 6: How willI know and grow?Sustained changerequires follow-up, monitoring andlearning. Without indicators to trackprogress, learning cant occur. Youmust weigh in and figure out whathelps or hinders your goal. In change,you should look for early signs of suc-cess by identifying lead indicators ofwhat is or is not working. The trackingindicators should lead to insights,improvements, and upgrades.

Leaders observe events, see pat-terns, think critically and creatively

about problems, are self-aware aboutstrengths and weaknesses, try newthings, and adapt and improve whatthey do and how they do it.

These six principles and questionshelp you move from the tyranny of to-do lists, events, and programs to theassimilation of a new identity. LE

Dave Ulrich is a professor of business administration at theUniversity of Michigan and has authored and co-authoredmany books including The Boundaryless Organization(Jossey-Bass). www.josseybass.com.

ACTION: Change how you change.

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Interpreting Meta-MessagesFear is a natural response to a percep-

tion about the future. Employee fearoften becomes the ever-present fabricwhen their managers and leaders aresuddenly behind closed doors, speakingin hushed tones, and refusing to addressrumors directly. This sends a very directmessage. Great leaders put themselvesin someone elses shoes temporarily inan effort to interpret these events forthem in a straightforward and truthfulway. In doing so, they create a sense ofcalmness, control, forward movement,

security, and direction. Unless leadersset a clear and explicit context for thiscommunication, employees create

their own worst-case scenarios.

Fear elevates undercertain conditions.Lack of shared focus,purpose, and visioncreates confusion.Lack of communica-tion opens the doorto paranoia (the ulti-mate fear response).

Lack of interpersonalcommunication caus-es more emotion,misunderstanding,and fear. Emotions

have a dramatic effect on our success.Positive emotional connection is goodfor business. Lack of respect for oth-ers undermines security, which caus-es resentmentanother form of fear.Failure to tap the inner talent andcreativity causes deeper isolationand fear. Failure to develop teamagreements, strategies, and decision-

making policies enhances isolation.Managements self-serving and exclu-sionary approaches cause isolationand fear among employees. Negativityand complaining become both thecause and effect of fear. Low moraledue to leaderships inability toacknowledge the truth causes fear.

Tips for Leaders

How can you as a leader build anenvironment where people feel safe?Mixed messages cause employees to

Diminishing Fear

F E AR S OM E HO W T OU CH ES A LM OS Tevery aspect of our lives. It iswoven invisibly into the fabric of ourexistence and often sets into motion achain of reactions and circumstances.

As leaders we need to ensure thatfear does not consume our workplacesand degrade the performance of ourpeople. The key to reducing fear atwork is direct and clear communica-

tion that eliminates mixed messagesthe catalytic driver of fear.

Communicative people are lessfearful and moresecure because theyknow where theystand. They are lessafraid to ask theawkward questionsand less intimidatedto have difficult con-versations. Theyknow that meta-messages live inside

of every communica-tion, and they striveto create clarity andunderstanding.

For example, ifyou seek new business, you may failto keep your team in the loop. As timepasses, you leave your team without aleader. Soon your people feel discon-nected from your activities. Worst-case scenarios seem to be whispered,and one-on-one side conversationsecho the halls.

As a result, fear starts to dominate

your team. It shows up as people startdistrusting your leadership capability,turning to other leaders outside theteam for advice and information, cre-ating concentric circles of communica-tion with others, and buildingmountains out of molehills.

Our sense of security and wellbeing are profoundly affected by howwell we are kept in the vital loop, howwell our leaders interpret and inte-grate the dynamics and complexitiesof workplace life for us.

retreat into fear. For example, whenyou say you care about keeping peoplein the loop, yet fail to do so, you sendmeta-messages. When you talk atemployees and give directives, but donot ask questions to clarify under-standing, you set the context for mixedmessages. Inevitably employees willthink one thing while you say some-thing else, and confusion will result.

Mixed messages create a metaphoricalmoat. We dont know which side of theriver we are standing on, and withoutthe security of knowing where westand, we cant do our best.

Instead of allowing mixed-messagesand worst-case scenarios to take over,set the context for inclusion: Dont be afraid to stand up for your

people. Create a safe environment sothey know that you are there for them.When having vital conversations aboutthe future direction, minimize misun-derstandings. Repeat what employees

say and ask questions to uncover hid-den implications. Be sure that reviewsare realistic so that people know exactlywhere they stand at all times. Be gen-uinely interested and acknowledgegood effort and accomplishments forothers to see. Clarify what employeesare saying before drawing conclusionsor making assumptions.Keep an open mind even if you dis-

agree with what is being said so youcan understand employee concerns.Remember emotions dont alwaysreside in logic; they reside in fear, and

thats what you want to release, notamplify. Evaluate information withoutbias. Ask questions to hear concerns.

Respond rather than react. Acknow-ledge employees issues and points ofview; listen actively so that you canrespond. Listen to the logic and theemotionconvey that you hear what isbeing said at all levels.

Accept responsibility for the impactof the way you are communicating.Walk the talkpeople will know thatthey can trust you. Say what you meanand mean what you say!

Dont be a people pleaserspeak thetruth. Be a change agent. Take timelyaction. Give constructive feedback.

Understanding how unspoken fearis affecting your business. Dealing withit by unraveling mixed messages willhave a big bottom-line payoff. LE

Judith E. Glaser is CEO of Benchmark Communications andauthor ofCreating WE and The DNAof Leadership (PlatinumPress, 2005). 212-307-4386, www.creatingwe.com. Nancy Snell,CEC, is a certified professional coach and director on the board ofthe NYCICF. 212-517-6488, www.nancysnell.com.

ACTION: Turn down fear and turn up clarity.

by Judith Glaser and Nancy Snell

8 L e a d e r s h i p E x c e l l e n c e

People Fear

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where water flows naturally downhill.This inner spring replenishes them

and helps explain why change doesntdeplete WITS; it merely ushers inmore opportunities for connection andtranscendence. Change deepens theirsense of purpose, presents opportuni-ties to help others, and adds to theirreservoir of permanent experience.

An employee with WITS can ener-gize himself and others even when hehimself is undergoing great personalloss and challenge. The idea of drain-ing others is unthinkable to WITS.They pull themselves up by their ownbootstraps, so its hard to tell when

they may need support. They experi-ence adversity and happiness withoutever losing complete touch with either.Theyre resilient and empathetic

because theyre in touch with everyexperience theyve had. Their pool ofexperience is always present andaccessible to them. This gives them ahighly complex but nimble perspec-tive on life. This perspective increasestheir gratitude during good times,tempers their anxiety during bad

times, and enables them to empathizewith a wide range of people.

How much simpler life would be ifwe all knew exactly where waterflowed naturally downhill for us, andif we knew how to use that wellspringto our best advantage. Locating ourinner spring and figuring out what todo with it can be a tricky process.Springs begin deep underground, andthey often stay hidden there. No neonsign points the way. Most of us investa lot of blood, sweat, and tears digging

Capitalize on Talent

W H AT D O P EO PL Eturn to you for?Maybe people seek

you out because you know how totransform volumes of data into a con-cise exhibit. Perhaps they turn to youwhen they struggle to articulate theirideas or to regain their perspective.

Whatever your distinctive talent, itflows like water downhillnaturallyand effortlessly. You may not knowwhats natural for you, but the peoplearound you do. In fact, one way to

identify your distinctive talents is tolook at the dependencies you create inothers. That indicates a naturalstrength. People seek colleagues withWITS not so much for what they dobut for what they elicit from others.

WITS refers to people whose skillset is ideally suited to removingboundaries and helping others thrive.They are wise, innovative, thought-ful, and spunky. They bring out thebest in others. They cultivate growthwith great energy, purpose, and senseof calling. They know how to create a

culture that invites growth. This makeschange safe and fun, which encour-ages people to change their behaviorand improve their performance.

WITS are curious about whatmakes people tick, and thats whatdraws people to them. Sometimesbeing understood is more importantthan being loved. People dont neces-sarily love their protgs, but theymay understand them in a way that noone else does. Like expert gardeners,WITS invest in the environment with-out possessing it. Theyre in touch

with a sense of wonder and purpose.They define value and permanencevery differently than most people.WITS value connection; and even ifthat connection turns out to be tempo-rary, the feelings that accompany itarepermanent. This is where WITS gettheir fuel and why change doesntparalyze them. They carry a lot ofpermanence around inside themselves.Each time they connect with someone,they reconnect with an essential partof themselves: a deep inner place

holes that lead nowhere. Your ownunique artesian well is such an essen-tial part of you that you might not seeit. Or, if you do, you may discount itas ordinary or unnecessary. Some peo-ple do see where water flows natural-ly downhill for them, but they mayexperience it as an unwelcome floodthat they have to work around or asan annoying, dripping faucet in the

background that they block out inorder to concentrate on their career.They dont see it for what it really is:talent. WITS not only help colleagueslocate their inner spring, but they alsoshow them how to honor and refine it.WITS are attuned to the sound ofwater flowing naturally downhill, andit calls to them. They help peoplebring their inner spring to the surface,drop by precious drop.

Think about those moments whenyou lose track of time. When do youfind yourself so absorbed in what

youre doing that you enter a state offlow? This is a good indicator thatyouve identified a spot where waterflows naturally downhill for you. Doyou lose yourself in numbers, spread-sheets, and detail? Maybe its writing,speaking, and big-concept thinkingthat come naturally to you. Perhapsabstract ideas bore you, but creating atangible finished product mesmerizesyou. The corporate world is full ofpeople in miscast roles because theyignore the call of water flowing natu-rally downhill deep inside themselves.

Their jobs drain them, and they watchthe clock. In honest moments, they feellike frauds. They build their careers ona pebble of talent and experience debil-itating, unsatisfying success.

It takes a lot of misspent energy tomake a mountain out of a molehill. Areal mountain is natural, not con-trived. It rests on bedrock and has thepower to inspire. Your inner spring isyour piece of greatness. So why do somany people end up on molehillsinstead of on mountaintops? TheHerdInstinct and the Power of Confusion lead

a lot of good people astray. Herd instinct. The herd instinct

refers to animals that all look alike andbehave alike without much individualthought. Each member suspends judg-ment and choice in deference to theherd. Members look to the herd fordirection and sustenance. Each animalsacrifices its identity and freedom inexchange for insulation. The herd rep-resents a small, swaddled existence.Many hardworking employees livetheir entire careers inside the herd.

by Michelle Gall

L e a d e r s h i p E x c e l l e n c e 9

People Talent

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Individuality (where water flows natu-rally downhill) undermines the herdorder of things and is repressed. Herdstravel together on common ground fora common cause. Conformity deter-mines a herds survival, not individu-ality. People have a very human needto belong. The herd feeds andresponds to this common need. Theresult is a bigger herd that keeps tram-pling over the same ground. Most

people cant resist the siren song of thecommon herd. Thats how corpora-tions end up with a swaddled work-force that is disconnected from themarketplace. A herd can still be pro-ductive, but its productivity is limitedto what the entire herd can or will per-form. This often means that perfor-mance is determined by the lowestcommon denominator. Power of confusion. It would be

easier for you to capitalize on yourdistinctive talents if life werent soconfusing. You want to do the right

thing and live up to your potential,but you have no idea what that is. Thebrighter you are and the more choicesyou have, the more confusing life canbe. Education often raises expectationswithout providing clarity. Experienceusually helps you define what youdont likenot discover what you dolike and what youre good at. Thatswhy so many people end up ricochet-ing through corporate life. Withouttheir inner spring to guide them, evensmart people can mistake molehills formountains and pap for vision.

Like a hidden magnet that attractsiron filings across a sheet of paper, ourinner spring haspresence whether weacknowledge it or not. WITS respondto that presence and feel compelled tocultivate it. They help colleagues dis-cover their natural talents. This defus-es theHerd Instinct and disables thePower of Confusion. WITS help col-leagues define themselves and theirrelationships. WITS do this naturallyand creatively because developingothers is their talent.

No company can thrive without

WITS, and yet most leaders dontknow how to identify or find thesevaluable peopleor dont appreciatehow WITS contribute to a healthy cul-ture. An exceptional culture translatesinto a sustainable competitive advan-tage. Locate your potential WITS.They remind colleagues how impor-tant it is to find the right fit. LE

Michelle Gall is an executive coach, author, and speaker. Thisarticle is an excerpt from her book, Keep Your WITS AboutYou. www.michellegall.com.

ACTION: Fit your talent to their roles.

by Ira Chaleff

nership, not subservience. You mightask, How can we do that? Or, Canyou make it happen? You would seekthe individuals knowledge, responsi-bility, and mutual commitment.

You talk differently to folks belowyou than to folks across from or aboveyou. So what? The higher you go, theless direct experience you have of cus-tomers, stakeholders, and problems. It

is harder to get a real feel for what ishappening. You become more depen-dent on good information and insightfrom those who are in touch. So, theyneed to feel invited to tell you the real-ity they see, especially when it differsfrom the one you believe is out there.

You likely thinkthat you alreadyextend this invitation, but you maydiscourage people from giving youinconvenient information. Unless youmake an effort to discover in what waysyou do this, you will continue to do so.

Creating PartnersTo create partners, try this exercise:

Start every meeting with a question:Is there anything Im not getting aboutthis issue that you think I should?

Whatever the answer,respond with interest andask, Can you tell memore about that or give anexample to help me under-stand it better? Ask questions until you

have clarity on the points.Dont argue. Dont interro-

gatejust clarify. Thank the individual or

group making these points. Incorporate what makes

sense into the decisions. If no one spoke up, after the meet-

ing ask the individual who is likely tobe forthright, What am I doing thatkeeps everyone from talking? If this individual gives you insight

into how you discourage feedback,convey your gratefulness. Find a wayto reward the honesty. Invite this truth-teller to sit in on

more meetings and after each one giveyou feedback on anything you didthat made others act as subordinates.

By doing this you will have the self-awareness to create partners. You willalso have earned their trust. They willgive you their best advice and enthusi-astically support decisions that arebased on reality. LE

Ira Chaleff is president of Executive Coaching & ConsultingAssociates and author ofThe Courageous Follower:Standing Up To and For Our Leaders. www.exe-coach.com.

ACTION: Create partners with your people.

WH O W OU L D Y OUrather have atyour side in a tough

spot? A partner who shares fullresponsibility for decisions and theiroutcomes? Or a subordinate who doesjust what you say and shuts up aboutideas he has that may be better?

Rationally, you want the former;emotionally, you may choose the latter.

Reflect on your career. Have youever kept quiet when superiors were

creating problems? What caused youto withhold your counsel?

I guarantee you they were beingthe boss. Everything about theirtone, body language, verbal language,and bearing was signalingyou that they were theboss and you were the sub-ordinate. Chances are youlearned from them what aboss looks and sounds like.Whether you admiredtheir style or not, some ofit rubbed off on you.

When you act as a supe-rior, you will have subordi-nates. Act as a partner, andyou will have partners.Yes, you may be the seniorpartner, but they are still partners, notunderlings or subordinates.

One key difference between thebehavior of a boss and a partner isthe way you talk. You talk differentlyto partners. It is not just what you say,but how you say it. To a subordinate,you might say, This client wants hisorder fulfilled now. Make it happen.

What is the message? Its not justGet the order done now, but its alsoIm the boss; this is what I wantandthere could be consequences if I dontget it. It doesnt require a dramaticact to make the point that the receiveris your subordinate. Are you aware ofhow often and in how many ways yousend similar messages?

This is not how you would talk to apartner. You might be just as clearabout what you want and when; how-ever, your delivery would create part-

CreatingPartnersStop having subordinates.

Management People

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loyalty, longevity, and profitability inan industry fraught with competition.

When I interviewed the leaders ofthese companies, I discovered thatthey have a culture of appreciation.

Appreciation is not just anotherword forgratitude.Appreciation isabout recognizing and caring aboutthe value of things. This is the way theword appreciation is used in the mar-ketplace: we say that land appreciates,gold appreciates, art appreciatestheyall increase in value and in worth.When you are genuinely concernedwith the value and worth of your peo-ple, and decide to make valuing your

number-one priority, the value of yourbusiness skyrockets.

The reason appreciation works sospectacularly is scientific: Appreciation

is an energy that attracts like energy.So, by valuing your employees, youattract value from them. Like attractslike. Its not just a catchy phraseits ascientific reality you can use to yourdirect benefit.

How? It all starts with youwhether youre the owner, department

head, manager, or supervisorwhatyou think and what you feel affectsevery person involved with your com-pany. You set the tone, you set thepace, and you determine what isgoing to matter and what isnt. Youhave enormous impact.

If you see your products and ser-vices as having tremendous value,those you manage will appreciatethem in the same way. If you see thepeople who work for you as havingtremendous value, those people will

Culture of Appreciation

MOST OF US THINKwe appreciateour employees. We say

good job for work well done, wegive out Employee of the Monthawards, and we honor our top produ-cers. Yet, two out of three workers saythey didnt receive a single word ofpraise or simple recognition in thepast year. Well, you think, Thats theother guyI appreciate, Im grateful.Yet, the number 1 reason people leavejobs is lack of appreciationnot low

pay, not too many hours, or too fewbenefits. People quit first because theydont feel appreciated!

How much does turnover costyou? How much do you spend inrecruiting, hiring, and training newhires? How much timeproductivi-tyis lost in the process? And whatabout absenteeism and lack of moti-vation and enthusiasm? Because thosewho arent quitting, but who feel un-appreciated, are coming to work lessoften, with less zeal and less commit-ment. And who incurs the cost? You.

Your business. Your company.And the cost is considerable.

Appreciation has a real and measur-able impact on your bottom line.Studies reveal that the degree towhich people feel their company rec-ognizes employee excellence results indramatic differences to the companysbottom line. Businesses effectivelyvaluing their employees enjoy triplethe returns on equity, returns onassets, and higher operating margins.

And thats just when employeeexcellence is appreciated. What do

you think can happenwhat doeshappenwhen you have an entireculture of appreciation? When anobsession with value, with the worthof people and situations, becomesyour way of doing business?

Companies such as SouthwestAirlines and Sees Candies haveembraced the appreciation approach.The result? Southwest Airlines ismaking money while its competitorsare filing for bankruptcy. SeesCandies has tremendous customer

want to step up to the plate for you.Your business cannot help but prosper.Its scientific. Like attracts like.

Five Ways to Appreciate

Here are five ways you can appreci-ate beyond Employee of the Month:

1. Adopt an appreciative focus.Appreciation is an active, purposefulsearch for the value or worth of what-

ever or whomever you come in con-tact with. Many times, your focus ison everything thats going wrong asyou come to work: all the problemsthat you must somehow solve or dele-gate to be solved. In the process, youignore, and most emphatically fail tovalue, everything thats going right.

Look at your business with neweyes. Search for what you can appreci-ate and find of value in every person,every moment of the day. Ask yourmanagers to report whats workingright, where the greatest progress is

being made, whos going the extramile. Take time to acknowledge thepositive reports from your managers,ask for more details, and be enthusias-tic about what they have to say.

2. Problem-solve with appreciation.When problems inevitably arise, askemployees what they think mightresolve the issue. When valued thisway, most workers will try to producegood solutions, especially since theyoften know the workings of their par-ticular job or department better thananyone. By using this approach, you

are acknowledging your employeesvalue before usurping it with yours.

Of course, others will not alwayssolve problems for you, but by valuingyour workers ability to do so, youincrease the chances that they will. Andby acknowledging their value, youincrease the possibility that employeeswill become proactive and eagerly seeksolutions to future problems.

When you see value in people, youfree them to be more creative, moreinnovative, and more valuable to yourbusiness. In addition, when employees

are part of the solution-makingprocess, they own the solution and aretherefore more willing to do what ittakes to see it through.

3. Catch employees in the act ofdoing something right. So often, wefocus on only catching employeesdoing something wrong. In truth,catching people doing somethingright, something of value, is far morebeneficial to your business.

Make a habit of walking around thebusiness spontaneously. Using the

by Noelle Nelson

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People Appreciation

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appreciation reports gleaned fromyour department heads, let workersknow that you appreciate a specificaspect of their effort. Tell them howtheir good act was noticed and whatit means to you and to the company.

Know enough about what workersare doing in different departments soyou can make meaningful commentsabout their contributions. Specificcomments are much more appreciated.

Saying Youre doing a great job isntas meaningful as saying, The specsyou wrote up on Project X really madea difference to our customer.

Ask employees what theyre work-ing on now. Engage them in conversa-tion about their work. Wanting toknow their thoughts lets employeesknow that what they think and say isvaluable. Look workers in the eye, usetheir name, and be genuinely interest-ed in their comments.

4. Create a culture of appreciation.Collect stories of work done well.

Make heroes of the men and womenwho work for and with you. We are allstarved for recognition, for genuineapplauding of our talents and skills.The success of TV reality shows ispredicated on our need to be valuedand to be seen as valuable. We want tobe appreciated for who we are andwant the opportunity to be winners.

Celebrate the value of those whoare deserving, regardless of position ordepartment. Celebrate workers goodacts outside of work as well. By foster-ing a culture that acknowledges good

acts within your community, yourcompany will reap the benefits.

Discourage negative talk and gos-sip about anyone or anything. Dontindulge in the economy is terrible,stockholders are a nuisance, ormeetings are a waste of time conver-sations. Dont trash or bash others.

5. Lead by example. Appreciation isnot a fad or technique. It is a paradigmshift, a new approach. It is even morecritical today when employees oftenhave a variety of career choices andmove on when they feel unappreciat-

ed. If you want to see the tremendousadvantage an appreciative approachcan make, infuse your business withappreciative thoughts and practices.

It all starts with you. From you,appreciation can spread to the greatbenefit of your performance, produc-tivity, and profitability. LE

Dr. Noelle Nelson is a psychologist and business trial consul-tant. An international speaker, author and seminar leader, herlatest book is The Power of Appreciation in Business(MindLab Publishing). [email protected],www.ThePowerOfAppreciationInBusiness.com.

ACTION: Appreciate your people.

by Gerard A.Abraham

gic alignment delivers four majoradvantages: 1) it allows an efficientuse of usually scarce resources; 2) itresults in increased speed of execution;3) it promotes team efforts towardcommon goals; and 4) it boosts moti-vation by giving people a keener senseof contribution to the results of theirgroups and the corporation as a whole.

These are great results, but few cor-

porations realize them. Since manycorporations and their leadershipteams try to gain strategic alignment,what barriers must be overcome?

I see two key components of suc-cessful strategic alignment:

1. Communicate extensively to helppeople understand the elements of thevision and of the key strategic direc-tions. Repetition by the leadership andmanagement teams at every opportu-nityincluding sales meetings, com-pany meetings, and operationalbusiness reviewsenables each

employee to understand vividly howhe or she can contribute.

2. Link the results of each employeesjob to the progress of the entire corpora-tion strategy, and do it clearly and sim-

ply. This is best done byusing simple measures ofkey performances (KBMs=key business metrics, orKPMs=key performancemetrics) that can be con-nected to the employeesannual performance review.

At Thermo Electron

Corporation, we use a cas-cading set of goals thatmeasure the progress ofthe strategic implementa-

tion. This waterfall effect or goaltree starts at the top and cascadesdown. The objectives are incorporatedinto our annual performance targetsand support the key goals of our lead-ers. This ensures focus and alignmentas employees deliver on their objec-tives. Objectives are rolled back up thegoal tree in reviews of goals.

Implementing strategic alignment

requires a strong commitment from thetop leadership and a focus on frequentcommunication using simple manage-ment principles of focus, clarity, andreinforcement. In the end, effective exe-cution of strategic alignment is aleaders top priority and ensures thatgoals are met and success achieved. LE

Gerard A. Abraham is president of Process InstrumentsDivision, a $400 million global manufacturing powerhouse ofThermo Electron. He is best known for his C-level leadershipin global, technology businesses. [email protected].

ACTION: Execute strategic alignment.

IT IS AN ALL-TOO-FAMILIARscenario. CorporationX misses badly on its

commitments several quarters in a rowand the stock plummets. As a result,the Board loses confidence, the CEOresigns, and a new CEO is appoint-ed who announces a restructure.

In recent years, we have seen manysuch reports. Even where top-levelexecutives show signs of vision andarticulate what seems to be a sound

business strategy on paper, results fallshort of expectations.

We have all been there. The leader-ship team spends long hours agreeingon a strategy to improve performance.Management teams comeup with supportive annualbudgets. Both teams popu-late long PowerPoint pre-sentations and exhaustivespreadsheet files. Yet notmuch happens in terms ofdeliverables! Ambitiousyear-end targets are missed.

Improvement curves keepbeing shifted to the right,and the restructure begins.

Questions arise as to whythese events occur: What has gonewrong and why? Are the goals tooaggressive? Are the visions or strate-gies inadequate? Are middle managersunable to execute? If the answer is yes toall these questions, then why is it so?

All are good questions; however,the key element is strategic alignment.

What is Strategic Alignment?

Strategic alignment is the linkagebetween the goals of the business,which quantify the progress of theimplementation of the strategy towardthe vision, and the goals of each keycontributor, including groups, divi-sions, business units, and departments.

Strategic alignment, then, is every-one rowing in the same direction. Thetighter the linkage and the better thealignment, the likelihood of flawlessexecution becomes stronger.

Once implemented properly, strate-

StrategicAlignmentLearn how to execute effectively.

Management Alignment

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Companies whose employees arehighly engaged with customer service

are rated the highest in customer satis-faction. Raising customer-focusedemployee engagement translates intodollars on the bottom line, potentiallya lot of dollars. A mere one point risein your ASCI score can boost your ROIby an average of 11.4 percent!

What Gets Measured Gets Attention

Before you can increase engage-ment, you first must measure it. Anaccurate measure of employee engage-ment requires a special surveynotthe employee satisfaction survey.

There is a difference between employ-ee satisfaction andengagement. Satisfied employ-

ees feel pleasant, sati-ated, content, andgratified. And theytend to have lowabsenteeism, lowturnover, and lowsubstance abuse. Butthey may be neitherengaged nor motivat-ed to expend extra

effort in their work orfor customers. In contrast,

engaged employeesbehave in ways thatenhance the customer experience.They go the extra mile in the interestof service quality and customer satis-faction. When your customers receivesuperior service every day, it can havea dramatic impact on your financialhealth.

Engaged employees (focused oncustomers) feel passionate about pro-

viding excellent service, energized byhelping customers, involved in theirwork, trusting of their manager. Theyfeel safe to make decisions, take risks,or speak up with concerns. They arecommitted to the goal of providingservice excellence. They establish rela-tionships with customers, not just fillorders; anticipate customer needs;support coworkers so that they canprovide service excellence; take initia-tive to ensure consistent service; andfind answers to customer questions.

Customer Satisfaction

THE FASTEST TICKET TOcustomer satisfac-tion is through consis-

tent, excellent service. As companiesbattle for competitive advantage,many find that improving servicequality and customer satisfaction canbe elusive. The first step to achievingboth is to raise employee engagement.

All organizations benefit from hav-ing an engaged workforce. But forthose whose success hinges on deliv-ering excellent customer service, a

special type of employee engagement,customer-focused engagement, has aneven stronger impact. Customer-

focused engagement occurs whenemployee work groups are committedto (and passionate about) deliveringexcellent service to their customers.

Employees wont become engagedwith service quality just because youwish them to. It takes time and effortto nurture an environment whereengagement can take root and grow.With the right leadership, resourcesand information, you can shape the

environment to engage employeesand focus their efforts where it mat-ters moston customer satisfaction.

Evidence for Engagement

Will an investment in employeeengagement pay for itself throughincreased customer satisfaction?

We measured satisfaction levels of50 firms using the American CustomerSatisfaction Index (ACSI). To measurecustomer-focused engagement, weasked employees to rate items like,We help customers beyond what is

required, and The norm here is tohelp customers.

When we mapped the employeesurvey results for each companyagainst ASCI score for that company,we found that the higher the level ofcustomer-focused engagement, thebetter the score on customer satisfac-tion. In fact, we see a direct correla-tion between employee engagementand customer satisfaction. When youincrease customer-focused engagement,

you will increase customer satisfaction.

Creating CFEE

Engaging employees is not simplya matter of telling them what to do.The way to change someones workbehavior is to first change the waythey feel about their jobs. Tailor yourprograms around six areas:

1. Job design. When jobs are chal-lenging and allow employees to useall of their talents, they feel involved.

Time passes quickly, and effortrequired to do the work is easy togive. Engagement is high whenemployees are working to achieve spe-cific difficult goalsgoals they acceptas reasonable and attainable, but onesthat also provide a stretch.

2. Immediate managers. Managersplay a big role in how employees feelabout their jobs. Fairness and trust shownto the employees by their managerswill create a culture of engagement inthe work group, ensuring a collective,coordinated effort in serving customers.

3. Service message. Most of the ser-vice messageemployees receivecomes from cuesfrom their immedi-ate manager as towhat is important.Managers must rec-ognize and reinforceservice excellence,ensure that obstaclesto excellence areremoved, and setgoals for service

excellence. Unlesseverything employ-ees experiencefocuses their effortson service quality

and customer satisfaction, customersatisfaction likely wont emerge.

4. Resources. When employees feelthey have the resources they need todo their jobs well, they are moreengaged in their customer service.

5. HR policies. Organizations thatensure their HRM systems promotecustomer satisfactionwho gets hired,

how they are trained, what is measuredin performance managementpro-duce customer-focused engagement.

6. Benchmarking. You need baselineknowledge about employee engage-ment levels and customer satisfactionbefore you make changes. Use surveysand other assessment tools to measureemployee engagement periodically togauge progress. LE

Benjamin Schneider is the CLO of Valtera [email protected], 858-488-7594.

ACTION: Boost your customer satisfaction.

by Benjamin Schneider

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plish it. After focusing more on perfor-mance for 15 years, when we came out

with a beliefs-and-values statementour employees were a bit skeptical. Inthe first year, we had a series of pro-grams, town-hall meetings, brown-bagsessions, and other discussions to talkabout what we aspired to doall ofwhich were met with great enthusi-asm and great skepticism at the sametime. The enthusiasm was driven bythe view that we needed to do more tobecome a great place to work overtime. The skepticism was driven by aconcern about whether or not webelieved and were committed to what

we were saying.Last year, we put some teeth in our

effort to improve the quality of man-agement and improve the culture. We

decided to administer our employeeopinion survey, Tell Dell, twice ayear, and we asked every vice presi-dent, director, and manager to get 20percent better results than the yearbefore. We wanted to send a signal:The results are important, but how

you get results is also important. Atfirst people said, Thats nice, but willthey really pay attention? The majorchange we made was to identify met-rics, based on responses by employees,that measured how well our managersmanaged and how well leaders led. Inshort, we decided employees wouldvote on whether or not we had madeany progress.

The results were interesting. First,we got 90 percent participation world-wide, which is amazing itself, and

Create a Great Place to Work

WE ARE KNOWN FORour productivity;however, behind pro-

ductivity are people, and we arelearning what it means to be a greatcompany and a great place to work.

Dell has been a results-driven com-pany for a long timealmost to theexclusion of everything else! In manyways, that has accounted for our suc-cess. One thing I discovered is thatwhen your stock is going up 300 per-cent a year, no one pays much atten-

tion to issues like effectivemanagement or creating careertracks for your people. People will-ingly work very hard for long periodsbecause the payoff is so huge.

Our crisis of conscience came in2001 when, for the first time, we hadto lay people off. In late 2001, wewent through a self-discovery processwhere we started to ask, If we arentgoing to be a company where you cancome in and be rich by noon tomor-row, what are we? What do we aspireto? What kind of company do we

want to be? Our president, KevinRollins, and CEO Michael Dell begana dialogue about what it really meansto be a great company and a greatplace to work.

In the end, we came up with whatprobably looks to outsiders like abeliefs-and-values statement. We callit The Soul of Dell. It is a statementof our aspirations as a company.There are five aspects: the Dell team,customers, direct relationships, globalcitizenship, and winning. We sharedearly drafts of the documents with all

of our vice presidents, and had somegreat dialogue about what we togeth-er aspired to become.

The biggest gap was betweenwhere we were and where we wantedto be with the Dell team. So we start-ed to talk about what it would meanto be a winning culture. We soon real-ized that we would have to broadenthe definition of what we cared about,beyond financial results. We continueto care very much about what weaccomplish, but also how we accom-

over 90 percent the second time wedid it. When we first did the survey,we didnt show much progress fromearlier years, which was to be expect-ed. But Michael and Kevin talk aboutit every time we get together as asenior management team. They directthe senior team to share the results, infront of their peers. And they discusstheir own scores. Thats what caught

peoples attention. Slowly but surely,were getting betteras are our man-agers throughout the company.

There are about 30 statements onthe survey, and we use five of them ascore metrics for measurements: Mymanager is effective at managing peo-ple. My manager gives effective feed-back. If you had an opportunity towork some place other than Dell,would you take it? I feel like I can besuccessful and retain my individualityat Dell. My manager helps me managemy work/life balance.

When we did the second survey, itwas fun. We did get 20 percent better! Ithink we were all surprised at howmuch progress we had made. Whatwas even more amazing is that thishappened across the boardwe gotbetter everywhere.

This has been a very positive expe-rience for everyone. Our leaders arereminded that if we put our minds toit, we can get better at a lot of thingseven things that seem intangible. Forour employees, it has been positivebecause it has driven far more conver-

sations about issues between managersand their people. Were using simplemetrics to measure change, but arebroadening our definition of what itmeans to be a great company.

Leadership Development

For three years we have had a com-pany-wide leadership program. Itsone-day long, and all leader-led (wenever use consultants). Each year, wefocus on a different facet of leadershipat Dell. Each year, we advance what itmeans to be an effective leader at Dell.

And every year it starts with Michaeland Kevin. They devote one day toteach our strategy committeeoursenior-most decision-making groupabout what it means to be a goodleader. Then each of us repeats thatleadership training with our directreports, and on down the company.We all share our expectations with ourteams about leadership. It is a power-ful change mechanismto stand infront of your team and discuss whatyou expect them to do differently, and

by Paul McKinnon

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then have them tell you what youneed to do to improve.

First, its powerful that our chair-man and president are willing tospend a day to talk about this becauseit is a very revealing process. They talkabout things that they did well andpoorly. Its powerful to stand in frontof your own team and lead a discus-sion about leadership. Personally, I feelvery exposed during those conversa-

tions. I know that they know what theleadership issues are with me, and so Ihave to fess up and say, Well, hereswhat I think I need to work on.

We have also used 360 assessmentsmore with our VPs and directors. Wehave put together a consistent world-wide management-development cur-riculum that defines expectations aswell as builds skills. We also haveshort tutorial workshops for anyonewho scores below 50 percent on any ofthe five items.

So, where do we go from here? We

will do the survey again this year, andthis time everyone will be expected toget at least 50 percent favorableresponses on each question. If youvegot an approval rate of higher than 75percent, well ask you to stay at thatlevel; its hard to ask those people toget a 20 percent improvement whenthey are already doing so well.

Our European team, in addition todoing what weve done, asked theirentire management team, If you weregoing to teach one lesson in leadershipto the people on the Dell Europe team,

what would that be? Then they wereasked to develop a 45-minuteapproach to teach that lesson. Everytime they meet with a new group orvisit a new country, they take an hourand teach their lesson in leadership. Itputs our leaders up in front of ouremployees more consistently.

Almost every culture change has aback-to-basics emphasis because peo-ple tend to lose their focus on the busi-ness. We came at this from an oppositeposition. Our business continues to dovery well. Two years ago, we set a

goal to double the size of the companyin five yearsand were alreadyahead of pace to do that. So, Im proudto say that for a company on top of itsgame, we still want to be betternotjust on our business results, but also inthe way we manage our people. LE

Paul McKinnon serves as senior VP for Dell HumanResources. He is responsible for all human resources functionsand activities as well as security and global diversity. Hes thearchitect of Dells Winning Culture initiative, driving positivechange in Dells goal to be viewed as a great place to work.

ACTION: Create a great place to work.

by Glenn Brome

would only ask, How high? Asleaders progress, they allow for two-way communication, but they are stillin the middle directing the activities.Then, as leaders continue to progress,they step out of the middle andbecome a part of the team. The leadersare still responsible, but they do notpush their peoplethey tend to pull,to get people to follow themnot to

push and micro-manage them.As leaders progress even more, they

can step away from the day-to-day man-agement. This affords even more com-munication among the members of theteam. Again, you cant do this untilyou help the team members interactwith each other on a level playing field.You can then be free to work on themore strategic elements of your job.

These skills are becoming more crit-ical because the leaders span at con-trol is expanding!

Now, when you step away, you do

not disengage! You cant expect whatyou dont inspect. So you must be acces-

sible, continue to coach,and have the courage tohold people accountableand not fold under pres-sure. Suppose, for exam-ple, that you have beencoaching a direct report onan important project. Theproject does not reach itstarget. Your boss calls you inand asks, What happened?You might explain how

you have been coaching amember of your team who let youdown; but, you need the courage toalso say, I am responsible, and I willmake sure that it doesnt happenagain. You are ultimately responsiblefor your groups performance!

Now, you will want to talk withthat direct report about what hap-pened. Clearly you need to revisit themiscues. It is the employees responsi-bility to achieve the goals, but you needto ensure your people are on-track.

Facilitative leaders listen to multi-

ple points of view, including thosethey do not agree with. This enablesthem to make better decisions.Facilitative leaders capture the keykernels of information, build bridgesbetween people, and create an atmos-phere where people share information.

When you master these skills, youbecome a facilitative leader. LE

Glenn Brome is the author ofFacilitative Leadership. He isa leadership expert, professional speaker, and author.www.GlennBrome.com.

ACTION: Create a facilitative culture.

FACILITATIVE LEADERSHIPis not about leadingby committee or getting

everyone together and asking, Whatdo you and you think? Not every-thing can be decided by committee.The front lines are not the place to takea straw poll. Even so, there are timeswhen a leader can, and should, getpeople together to talk about how toimprove operations and ask for input.Thats facilitative leadership.

For this process to work, leadersmust create a culture where people notonly feel comfortable con-tributing ideas and sugges-tions, but where leaders acton those inputs.

Acting on input does notmean doing everything thegroup tells you to do. Itmeans making it clear tothe group that their input isvalued by defining howthat input will be used.Many times a leader gives

the impression that if theteam members give honest input, theywill be punished. This is why theleader must clarify how the input willbe used before asking for input.

For instance, let the group know ifyou are: 1) just asking for ideas andyou, the leader, will make the finaldecision; 2) asking for ideas and you,the leader, will discuss options withthe group before making the finaldecision; 3) requesting input so thefinal decision will be made together asa team; 4) requiring input, and the

team will make the final decision afterreviewing it with you; 5) giving inputto the team, and the team will tell youwhat the final decision is.

These are examples of how to explainyour intentions when involving directreports in decision-making. Claritybuilds respect, trust, and rapport.

The role of the leader is changing.Once, the leader stood in the middle ofeverything and directed the team withone-way communication. The leaderwould say jump, and followers

FacilitativeLeadershipTransform your organization.

Leadership Facilitation

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We have to wade in the mud to grabthe grid within. We have to find new

ways to see and dig into our work-place mess. We must unearth power-ful patterns that we can change. Andwe have to do it cheaply, quickly, andsafely. But how? You guessed it: Thinkinside the box.

Step 2. Accept your messy box.Welcome to work in our supposedlysparkly clean and tidy knowledgeeconomy. Dont spill on your com-puter. Print that spreadsheet. Get yourfeet off the desk! Work hasnt alwaysbeen so orderly. Our modern work-places hide our messes behind reports,

delicately presented in slick slide-shows by fashionable professionals.Thus, we miss the mess. Deal with thefact that you have towork inside a messybox filled to the brimwith the murky poli-tics, limited resources,pain, and pressurethat come with earn-ing a living and mak-ing a life throughwork. Now use yourskills, talents, exper-

tise, and creativitywithin the constraintsof your workplaceyour boxto inno-vate and excel.

Step 3. Name yourmess. Mess is unfa-miliar complexity. Today, leaders facemore complex and unfamiliar chal-lenges. Mess fills the gap betweenwhere we are and where we want tobe. Define your stakeholders environ-ment, resourc