Creating Executive ValueCreating Executive Valuefor Youfor You

Financial Executives International

December 2004

Learning ObjectivesLearning ObjectivesBy the end of our working session, you will:

• Know the elements of Creating Executive Value;

• Learn and apply a framework for a coaching discussion—the COACH Approach;

• Request Feedforward to accelerate your development;

• Be well on your way to creating more value for yourself, your team and your company;

What Do Effective Executives Do?What Do Effective Executives Do?

Characteristics of Worst Executives

Characteristics of Best Executives

What Do They Do?What Do They Do?

What Should Effective Executives What Should Effective Executives Do?Do?

Does It Really Matter How Does It Really Matter How Executives Get Results?Executives Get Results?

Top non-financial measures from E&Y’s Center Top non-financial measures from E&Y’s Center for Business Innovation that matter most in for Business Innovation that matter most in

investors decisions:investors decisions:

1. Execution of corporate strategy

2. Quality of strategy

3. Ability to innovate

4. Ability to attract talented people

What % of Your Employees are What % of Your Employees are Fully Engaged, Fully Contributing?Fully Engaged, Fully Contributing?

1. Satisfaction with job and company

2. Proud to work at company

3. Would recommend their company to friends

4. Would remain at the company even if offered a comparable job elsewhere

– Source: WatsonWyatt, “Work USA2000”

Building A High Performance CultureBuilding A High Performance Culture

Employee Commitment Indicators

Factors Encouraging Discretionary Effort

1. Having responsibility for one’s work 52%

2. Having a sense of worth in the job 42%

3. Getting the opportunity to make good use of skills 40%

4. Developing skill and abilities 40%

5. Recognition for own contributions 40%

– Source: Lawler and Porter research.

The direct manager heavily influences employees’ discretionary effort.

• Most important attribute when considering an employment decision: Quality of the Manager.

• The critical player in building a strong workplace: the Manager.

• Top four reasons for intention to leave directly related to: the Manager.

• People leave managers, not companies.

–Sources: Corporate Leadership Council and “First Break All The Rules”

Great Manager is Most Important80,000 executives surveyed over 40 years:

Bad Managers Drag the CompanyOf 4000 executives who have worked for an under performer:

• Percentage who believe they were prevented from learning: 76%

• Percentage who were hurt from a career development standpoint: 81%

• Percentage who were prevented from making a larger contribution to the bottom line: 82%

• Percentage who said “made me want to leave the company”: 82%

Creating The Employee Creating The Employee Value PropositionValue Proposition

– Source: McKinsey “War for Talent 2000”

A great manager will make or break the “deal”.

Leaders Create the Climate for Success

Creating Executive ValueCreating Executive ValueCreating Executive ValueCreating Executive Value

50-70% of variance inOrganizational Climate can be explained by differences in Leadership Styles

28% of variance inFinancial Results (profits and revenue) can be explained by differences in OrganizationalClimate

EmotionalCompetencies Leadership

StylesOrganizational

ClimateResults

Emotional Intelligence DefinedEmotional Intelligence Defined

“The capacity for recognizing our own feelings

and those of others, for motivating ourselves, for managing emotions

well in ourselves and in our relationships.”

Daniel Goleman

Why Emotional Why Emotional Intelligence MattersIntelligence Matters

● Necessary for breakthrough performance

● A better predictor of success in executive and management roles than experience, academic training or IQ

● Accounts for 75-96% of success at executive and managerial levels

● Necessary at both individual and team levels

The Emotional The Emotional Competency FrameworkCompetency Framework

Self-Awareness

Self-Awareness

SocialAwareness

SocialAwareness

Self-Management

Self-Management

Relationship ManagementRelationship Management

• Emotional Self-Awareness

• Accurate Self-Assessment

• Self-Confidence

• Empathy• Organizational

Awareness• Service Orientation

• Emotional Self-Control• Transparency• Optimism• Adaptability• Achievement

Orientation• Initiative

• Developing Others• Inspirational

Leadership• Influence• Change Catalyst• Conflict Management• Teamwork &

Collaboration

Leadership Styles Leadership Styles

Leadership styles are

not a function of personality but

of strategic choice, best selected for

the particular situation.

Six Leadership StylesSix Leadership Styles

• Directive

• Pacesetting

• Visionary

• Affiliative

• Participative

• Coaching

Inventory of Leadership StylesInventory of Leadership Styles

Styles You Intend Styles Your Raters Experience

Coercive Authoritative Affiliative Democratic CoachingPacesetting

Per

cen

tile

Sh

ow

n Do

min

an

tB

ack

up

100

90

80

70

60

50

40

30

20

10

0

31% 80% 51% 86% 25% 70%

Coercive Authoritative Affiliative Democratic CoachingPacesettingP

erce

nti

le S

ho

wn D

om

ina

nt

Ba

cku

p

100

90

80

70

60

50

40

30

20

10

0

68% 80% 40% 40% 25% 10%

Assess Your Leadership Style Assess Your Leadership Style TendenciesTendencies

Identify the percent of time you spend in each leadership style:

Leadership Styles

Directive:

Visionary:

Affiliative:

Participative:

Pacesetting:

Coaching:

Current % of Time Spent

_____ %

_____ %

_____ %

_____ %

_____ %

_____ %

Organizational ClimateOrganizational Climate

Organizational climate is the

perception of individual team members

of the six key characteristics that impact

how well they do their jobs.

Six Dimensions of Six Dimensions of Organizational ClimateOrganizational Climate

• Flexibility

• Responsibility

• Standards

• Rewards

• Clarity

• Team Commitment

Organizational Climate - Organizational Climate - ComparisonComparison

Assess The Working Climate Assess The Working Climate GapsGaps

What do you believe are the dimensions of working climate with the largest gaps for your direct reports? What actions will you take?

Dimensions of Climate

Flexibility:

Responsibility:

Standards:

Rewards:

Clarity:

Team Commitment:

Gaps

_____ %

_____ %

_____ %

_____ %

_____ %

_____ %

The Impact of Styles on Climate The Impact of Styles on Climate Scale of 1-6 with 6 being least effective style and 1 most effective style for the particular driver of climate

Directive Visionary Affiliative Participative Pacesetting Coaching Flexibility

6

1

3

2

5

4

Responsibility

6

2

3

1

4

5

Standards

5

2

3

4

6

1

Rewards

5

1

2

4

6

3

Clarity

5

1

3

4

6

2

Team Commitment

5

1

2

4

6

3

Project Your Desired Leadership Project Your Desired Leadership Styles For The FutureStyles For The Future

Identify the percent of time you plan to spend using each style going forward:

Leadership Styles

Directive:

Visionary:

Affiliative:

Participative:

Pacesetting:

Coaching:

Ideal % of Time Spent

_____ %

_____ %

_____ %

_____ %

_____ %

_____ %

Principles in Creating Executive ValuePrinciples in Creating Executive Value Be the role model for your company by assessing

and developing your Emotional Intelligence, using the right Leadership Style for the right situation—particularly the Visionary and Coaching styles--and creating an engaging Working Climate;

Monitor the performance and interactions of your Top Team;

Enlist “development advisors” to assist you in achieving desired behavioral changes;

The Antidote to Executive Blind Spots:The Antidote to Executive Blind Spots:

1. Emotional Competence Inventory

2. Inventory of Leadership Styles

3. Organizational Climate Survey

4. Top Team Check

Developing a Coaching Style of Developing a Coaching Style of LeadershipLeadership

Conducting A Coaching Discussion:Conducting A Coaching Discussion:The COACH ApproachThe COACH Approach®®

Current State:Current State:Where are you Where are you

at today?at today?

Current State:Current State:Where are you Where are you

at today?at today?

Ideal State:Ideal State:Where do youWhere do youwant to be?want to be?

Ideal State:Ideal State:Where do youWhere do youwant to be?want to be?

Coaching for ImpactCoaching for Impact

COMPELLING GOAL

COMPELLING GOAL OPTIONS OPTIONS ACTION ACTION CHALLENGES CHALLENGES HIGHLIGHTS

& RECAP HIGHLIGHTS

& RECAP

Establish goal(s) for coaching process• What specific

outcomes do you want to happen as a result of the coaching process?

• What would success look like?

Establish goal for the meeting• What do you want to

accomplish today?• What should we

focus on?

Explore options to reach goal

• What are your alternatives to achieve your goal?

• What should you consider in evaluating each option? Positives? Risks? Outcomes?

Gain insight and self-awarenessthrough reflection• What have you or

others already tried?• What do you know

about yourself?• How do you feel?

Identify appropriateactions • What specifically

needs to happen?• What are the most

critical actions to take?

• How will each action contribute to achieving your goal?

Establish a plan• What specific steps

are you committing to take action on?

• What are realistic deadlines?

• What resources and support do you need?

Identify potential orreal challenges toaction plan• What prevents you

from completing your action plan and achieving your goal?

• Which one of these needs to be addressed?

Develop/revise plan to address or removechallenges• What actions need to

occur to address these critical barriers?

• What resources or support do you need?

• What do you plan to do?

Highlight learnings• What did you learn

today?• What do you want to

continue to explore?

Recap commitments to action • What will you complete

by our next meeting?• How realistic are your

target dates?• How do these actions

stack up in yourpriorities?

Schedule next meeting

Four Cornerstone Four Cornerstone Coaching SkillsCoaching Skills

1. “Double-Click”Listening

2. FocusedQuestioning

4. ConfrontingWith Care

3. InspiringInsights

1. “Double-Click” 1. “Double-Click” ListeningListening

Listening beyond what is said to gain a full understanding of the Message, the Context, and the Motivation

• Listen to words and meaning• Facts and content• “This is the situation …”

• Listen for backdrop and perspective• Personal background and history• “Based on past experience, I view …”

• Listen for reasons and drivers• Values, aspirations and desires• “This is important to me because …”

MESSAGE:

CONTEXT:

MOTIVATION:

Process:

1. Develop a focused, safe environment

2. Listen to what is said, not said and non-verbals

3. Identify key word(s) that are most important to person

4. Take key word and repeat in form of a question

- “Change” -- “What about change is so important to you?”

5. Continue to double-click

6. Paraphrase or restate to confirm understanding

1. “Double-Click” 1. “Double-Click” ListeningListening

(Source: The Coaching Revolution: How Visionary Managers Are Using Coaching to Empower People and Unlock Their Full Potential)

2. Focused Questioning2. Focused Questioning

• Focus is on the other person exploring and discovering

• Use relevant questions that continue the flow of thought

• Be careful not to get preoccupied with what to ask next

• Focus on bringing out the “ah-ha’s”

• Use a variety types of questions

Asking questions that promote greater awareness, discovery, and reflection, and allow for expanded thinking in a given situation

Types of QuestionsTypes of Questions

EXPLORE

• What would success look like?• What is missing?• What are all the possibilities?• What are the greatest

challenges?

ANALYZE

• What do these facts reveal?• What do you think is the cause?• How do you interpret the

results?• What are the greatest

challenges?REFLECT

• How do you feel about the situation?

• What is important to you?• What do you like or dislike?

SUPPORT

• What do you need to succeed?

• How can I support you?• What specific resources would

enable you to meet your goal?

LEAD TO ACTION

• What steps are necessary to move forward?

• What action will you take?• What is holding you back?

3. Inspiring Insights3. Inspiring Insights

• Be quick to listen and slow to speak• Ask for permission to offer an insight (if appropriate)

“May I provide you with some observations?”• Be brief, focused and to the point• Remember the goal is to ignite• Use alternative types of resources in providing insights

Bring to light new perspectives and thoughts that energize, ignite new thinking and promote growth and change

3. Inspiring Insights3. Inspiring Insights

• Observations: Share what you see (or don’t see) in a situation

• Alternatives:Provide various ways of interpreting or approaching a situation

• New Ideas:Explain a new concept or way of thinking that relates to the situation

• Recommendations:Offer a recommendation on how to address or approach a situation

4. Confronting With Care4. Confronting With Care

Respectfully challenging what is stated or held to be true in order to be stretched beyond current thinking, perspective or actions

4. Confronting With Care4. Confronting With Care

““Are youAre you sure?”sure?”

““I want to challengeI want to challengeyour thinking.”your thinking.”

““I disagree I disagree with you.”with you.”

Calling intoCalling intoquestionquestion

Taking a differentTaking a differentpositionposition

Making a strongMaking a strongstandstand

GOAL: Helping other person explore, not to prove

Two Great Coaching Questions:Two Great Coaching Questions:

What is the most extraordinary thing you’ve done this week?

What is the most extraordinary thing you plan to do next week?

FeedforwardFeedforward

FeedforwardFeedforward

Focus of feedforward is to give someone suggestions and help for the future;

Feedback requires knowing about the person. Feedforward just requires having good ideas for achieving the task;

Feedforward can improve the quality of communication as it is not as threatening as feedback may be;

Focusing on the Promise of the Future, Not the Mistakes of the Past

FeedforwardFeedforwardTop Reasons for Feedforward:

1. We can change the future—can’t change the past;

2. Can be more productive to help people be right than to prove they were wrong;

3. Feedforward can come from anyone who knows about the task. It does not require personal experience with the individual;

4. People do not take feedforward as personally as feedback;

5. Feedback can reinforce personal stereotyping and negative self-fulfilling prophecies. Feedforward can reinforce the possibility of change;

6. Feedforward can cover almost all of the same material as feedback;

7. Feedforward tends to be much faster and more efficient than feedback;

Wheel of LifeWheel of LifeOn a scale of 1-10 (low to high) to what extent would you rate your complete satisfaction with each critical “spoke” on life’s wheel?

Fun

Career

FinancialSpiritual

Health &

Fitness

Family

Significant Other Frie

nds

The One-on-One ProcessThe One-on-One Process1. Pick one of two behaviors (or areas of your life) you would like

to change. This behavior should make a significant, positive difference in your performance. Think “How can I be the best team leader possible in order to help my organization be its best in the future?”

2. Pair off with as many of your colleagues as possible for a quick (four to five minute) discussion. Share the behavior you would like to change and ask for feedforward.

3. Listen attentively to the suggestion and take notes. No critique of ideas.

4. Thank your colleague for the suggestions.5. Reverse the process.

Relationship Between Follow-Up and Relationship Between Follow-Up and Perceived Improvement in EffectivenessPerceived Improvement in Effectiveness

0% 0% 1%4%

9%

31%

55%

0%

10%

20%

30%

40%

50%

60%

-3 -2 -1 0 1 2 3

Responded and Did Consistent Follow Up

Less Effective No perceptible change More Effective

For More Information Contact:For More Information Contact:

Chuck BoltonThe Bolton Group LLC701 Fourth Avenue SouthSuite 500Minneapolis, MN 55415www.theboltongroup.comEmail:

chuck@theboltongroup.comOffice: 612.337.9020Mobile: 612.229.1020