INSPIRE, R

ESPEC

T AND

REWARD: A

NEW CROWD-

SOURCED

MODEL OF

LEADER

SHIP E

FFECTIV

ENESS

D R . J A

C K WI L

E Y

MP PA W

MI N

N E A P O L I S,

MN

1 7 SE P T E M

B E R 20 1 3

2

WHAT ARE LEADERS WITHOUT FOLLOWERS?

I AM REMINDED HOW HOLLOWTHE LABEL OF LEADERSHIPSOMETIMES IS AND HOWHEROIC FOLLOWERSHIP CAN BE.

-Warren Bennis

“ “Our chief want is someonewho will inspire us to

bewhat we know we could be.

- Ralph Waldo Emerson

“

“

Steve Jobs

Sir Winston Churchill

3

LEADERS LISTENING TO ONE PERSPECTIVE

4

5

What is the mostimportant thingyou want fromyour top leader?

INSPIRE+

RESPECT+

REWARD

6

Careergrowth

10%

Appropriate & faircompensation

21%

Consid

erat

ion

& und

ersta

ndin

g

7% Fair & equal

treatment12%

Recognition& respect

12%

Honest &transparent

communication11%

Jobsecurity

6%

HighlySkilled

10%

Cleardirection

11%

7

Additional countries included in 2012Countries included in the original taxonomy development

FROM WHENCE OUR DATA

8

Why does itpay to listen tothe followers?

THE BALANCED SCORECARD

9

Operational Outcomes:Performance Confidence

SUCCESSFULLY MANAGING FOUR

PERSPECTIVES

People Outcomes:Employee Engagement

Customer Outcomes:Customer Satisfaction

Financial Outcomes:ROA / Operating Margin

10

8590 89

76

86

0

10

20

30

40

50

60

70

80

90

100

EmployeeEngagement Index

Pride Satisfaction Commitment Advocacy

Perc

ent F

avor

able

Employees who workfor leaders who inspire,respect and reward

Employees who do notwork for leaders whoinspire, respect and reward

INSPIRE + RESPECT + REWARDEMPLOYEE ENGAGEMENT

25 28 25 2622

Employees who workfor leaders who inspire,respect and reward

Employees who do notwork for leaders whoinspire, respect and reward

25 28 25 2622

Employees who workfor leaders who inspire,respect and reward

Employees who do notwork for leaders whoinspire, respect and reward

11

8478

85 8884

0

10

20

30

40

50

60

70

80

90

100

PerformanceConfidence Index

Innovativeproducts

High qualityproducts

Highlycompetitive

Outstandingfuture

Perc

ent F

avor

able

Employees who workfor leaders who inspire,respect and reward

Employees who do notwork for leaders whoinspire, respect and reward

INSPIRE + RESPECT + REWARDPERFORMANCE CONFIDENCE

3125

35

46

19

Employees who workfor leaders who inspire,respect and reward

Employees who do notwork for leaders whoinspire, respect and reward

3125

35

46

19

Employees who workfor leaders who inspire,respect and reward

Employees who do notwork for leaders whoinspire, respect and reward

12

80.3

70.0

72.0

74.0

76.0

78.0

80.0

82.0

Top 25% HighestScoring Companies

Bottom 25% LowestScoring Companies

Organizations with leaders who inspire, respect and reward

ACSI

Mea

n Sc

ore

Notes: r = .42, p < .01, n = 57 organizations

INSPIRE + RESPECT + REWARDCUSTOMER SATISFACTION

73.5

13

6.7

.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Top 25% HighestScoring Companies

Bottom 25% LowestScoring Companies

Organizations with leaders who inspire, respect and reward

ROA

(%)

Notes: r = .35, p < .01, n = 186 organizations

INSPIRE + RESPECT + REWARDRETURN-ON-ASSETS

1.7

14

14.9

0

2

4

6

8

10

12

14

16

Top 25% HighestScoring Companies

Bottom 25% LowestScoring Companies

Organizations with leaders who inspire, respect and reward

Ope

ratin

g M

argi

n (%

)

Notes: r = 0.32, p < .01, n = 186 organizations

INSPIRE + RESPECT + REWARDOPERATING MARGIN

7.0

INSPIR

EHonest &

transparentcommunication

11%

HighlySkilled

10%

Cleardirection

11%

16

TRANSPARENT AND HONEST COMMUNICATION

AN OPEN DIALOGUE“

“

MORE TRANSPARENCYAND SINCERITY“

“TWO-WAY COMMUNICATION“

“

17

46 4644

0

5

10

15

20

25

30

35

40

45

50

No Yes No Yes No Yes

Layoffs Pay Freeze Hiring Freeze

Perc

ent F

avor

able 35

33

37

THE BIG CHILLHONEST AND TRANSPARENT COMMUNICATION

RESPEC

TFair & equal

treatment7% Consideration

& understanding12%

Recognition& respect

12%

19

RECOGNITION AND RESPECT

RESPECT FOR THEHARD WORK ANDLONG HOURS“

“RECOGNITION FORPERSONAL INVESTMENTAND WORK PROVIDED“ “

RECOGNITION IN ASINCERE WAY“

“

20

THE PRIVILEGED FEWSATISFACTION WITH RECOGNITION

76

56

48

5649

43

0

10

20

30

40

50

60

70

80

Executive/Senior

Manager

Mid-LevelManager

Front-LineSupervisor

Sales Professional/TechnicalWorkers

Service/Production

Workers

Leadership level Job type

Perc

ent F

avor

able

REWAR

D

Careergrowth

10%

Appropriate & faircompensation

21%

Jobsecurity

6%

22

APPROPRIATE AND FAIR COMPENSATION

MORE SUBSTANTIALFINANCIAL RECOGNITIONDUE TO THE WORKLOADAND RESPONSIBILITIES

“ “THAT THE EQUIVALENT OFWHAT I PERSONALLY BRINGINTO THE COMPANYBE PAID BY THE COMPANY!

“ “

23

PAY PRACTICES MATTER BIG-TIME!

Relativeimpact of four

influencerson fair pay Pay is

related toperformance

36%

Know howto maximize

compensation28%

Actualpay level

10%

Understandhow pay isdetermined

26%

NOT EVERY

ONE IS TH

E

SAME

25

THE HAVES AND HAVE NOTS

61

46

57

42

76

35

0

10

20

30

40

50

60

70

80

Ages 18-24 Ages 45-54 Professionaldegree

Bachelor'sdegree

India Japan

Inspired Respected Rewarded

Perc

ent F

avor

able

61

46

57

42

76

35

0

10

20

30

40

50

60

70

80

Ages 18-24 Ages 45-54 Professionaldegree

Bachelor'sdegree

India Japan

Inspired Respected Rewarded

Perc

ent F

avor

able

61

46

57

42

76

35

0

10

20

30

40

50

60

70

80

Ages 18-24 Ages 45-54 Professionaldegree

Bachelor'sdegree

India Japan

Inspired Respected Rewarded

Perc

ent F

avor

able

HOW ARE TOP L

EADER

S

DOING?

27

LEADERSHIP SCORECARDINSPIRE % Fav

Highly Skilled 62

Clear Direction 49

Honest Communication 41

Confidence 48

50%INSPIREINDEX

RESPECT % Fav

Recognition 48

Consideration 37

Fair Treatment 42

Concern 43

42%RESPECT

INDEX

REWARD % Fav

Fair Compensation 40

Job Security 54

Career Growth 55

Employee-Oriented 48

49%REWARD

INDEX

28

RAISING THE BAR

take actionon employee

survey results

make pay practices

transparent

share goodand bad

newsConsideration and

understanding37%

FairCompensation

40%

INSPIRE RESPECT REWARD

HonestCommunication

41%

29

30

IT IS POSSIBLE

50

42

49

0

10

20

30

40

50

60

70

Inspire Respect Reward

Perc

ent F

avor

able

Global Average Fortune's Most Admired Companies*

62

54

61

Global Average Fortune's Most Admired Companies**Sample taken from companies in top 50% of ranking (n = 142)

QUESTIO

NS AND ANSW

ERS

32

CONTACT

Dr. Jack WileyEmail: jackwiley6@gmail.comOffice: 765-981-2020 Mobile: 612-481-2101

APPENDIX

INSPIRE + RESPECT + REWARDRELEVANT SURVEY ITEMS

34

Inspire

Highly skilled Senior Management at my organization has the ability to deal with the challenges we face.

Clear direction Senior management gives employees a clear picture of the direction the company is headed.

Honest and transparent communication When my organization’s senior management says something, you can believe it’s true

Inspire Overall I have confidence in my organization's senior leaders.

INSPIRE INDEX

Respec

t

Recognition and respect I am satisfied with the recognition I get for the work I do.

Consideration and understanding My organization's senior management shows a genuine interest in the views and opinions of employees

Fair and equal treatment My organization’s senior management treats employees fairly.

Respect Overall Senior management shows concern for the well-being and morale of employees.

RESPECT INDEX

Reward

Appropriate and fair compensation I am paid fairly for the work I do.

Job security At my organization, those who perform well have secure jobs.

Career growth My organization provides me with the opportunity for growth and development.

Reward Overall Senior management demonstrates that employees are important to the success of the organization.

REWARD INDEX