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ExcellenceL E A D E R S H I P

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

PETER M. SENGE, C.

OTTO SCHARMER,JOSEPH JAWORSKI, ANDBETTY SUE FLOWERS

Alternative FutureWe see an awakeningor enlightenment . . . . . . . 3

DAVE LOGAN, JOHNKING AND HALEEFISCHER-WRIGHT

Tribal LeadershipElevate your tribe . . . . . . .4

WARREN BENNIS ANDNOEL TICHY

Judgment TrumpsExperienceWhere do you put yourmoney and your vote?. . . 5

LARRY BOSSIDY

What Your LeaderExpects of You

Seven behaviors drive

growth and get results . . .6

MARGARET J. WHEATLEY

Self-Organized NetworksThis is the real word thatwe reject at our peril. . . . .7

GARY BRADT

Winning Culture. . . . . .8

JIM CHAMPY

X-EngineeringTake seven steps. . . . . . . . 9

IRA CHALEFF

Let the Middle LeadThey have the energyto improve things. . . . . . 10

MIKE FRIESEN

Emergency LeadershipLearn five lessons frommilitary pilots. . . . . . . . . 11

MARSHALL GOLDSMITH

AND MARILYN MCLEODThought LeadershipIdentify internal andexternal thought leaders. .12

DAVID W. GILL

Excellence and EthicsOne leads to the other. . .13

G. THOMAS HERRINGTONAND PATRICK T. MALONE

Cracking the CodeLeadership is about whole-hearted followership. . . .14

MICHAEL LEIMBACH

Form and EssenceYou need both elements. .15

ADRIANNE AHERN

Fire or Re-Wire?Learn to deal effectivelywith problem people. . . .16

RON MORRISON

A Leaders Greatest GiftGive the welcome giftof encouragement. . . . . . 16

CHRISTOPHER RICE

CEO ComplaintsThese often signaldestructive issues. . . . . . 17

BRUCE D. SCHNEIDER

Shifting EnergyLook more for what isright than wrong. . . . . . .18

QUINT STUDER

Five Leadership TacticsMake a connection withkey people every day. . . .19

RANDY SPITZER

Wise CounselLeadershipIt boosts engagement . . .20

VO L . 25 NO . 2 F E B R UARY 2008

Tribal Leadership

The core capacity needed to realize

an emerging future is presence, and

the heart of leadership development is upgrading the

effectiveness of the tribal culture and the leaders judgment.


2/21

RECENTLY ON A FLIGHT FROMPhoenix to Salt Lake City,I enjoyed a panoramic view

of the Grand Canyon, one of the naturalwonders of the world.

Again this month, as I peruse the busi-ness press, Im impressed with the GrandCanyon gap between the results deliveredby authentic versus counterfeit leaders (nat-ural wonders of their own worlds). The pri-mary cause of counterfeit? Erosion ofvision, purpose, passion, ethics, discipline,and willpower. The primary product of

counterfeit leadership? SILT (suboptimalimplementation of leadership talent).

Because every other business magazineis caught up in the news and views ofcelebrity leaders, we try to reinforce themoral True North of authentic leadership.

Two decades before Bill George, formerCEO of Medtronic, authored Authentic Lead-ership and True North, I was writing articlesand book chapters on these topics with Ste-phen Covey. Im pleased to see these conceptsfind homes at www.authleadership.com andwww.truenorthleaders.com. The AuthenticLeadership Institute is identifying many of

the best examples (Anne Mulcahy at Xerox,Kevin Sharer at Amgen, GEs Jeff Immelt,Howard Schultz at Starbucks, and MarilynCarlson Nelson at Carlson Group), and weare featuring their thought leadership.

What Authentic Leaders Do

I like what Robin S. Sharma, president ofSharma Leadership and author of

MegaLiving ([email protected]),wrote about 10 things authentic leaders do:

1. They speak their truth. We often saythings to please others or look good. Authen-tic leaders consistently talk truth, using wordsaligned with who they are. Speaking truth isabout being clear, honest, and authentic.

2. They lead from the heart. Leadership isabout people. The best leaders wear their

hearts on their sleeves and show their vul-nerability. They genuinely care about otherpeople and spend time developing them.

3. They have rich moral fiber. Who you arespeaks louder than anything you say.Strength of character is true powerand peo-ple can feel it. Authentic leaders walk theirtalk. People trust, respect and listen to them.

4. They are courageous. It takes courageto go against the crowd, be a visionary, anddo what you think is right. Many peoplewalk the path of least resistance. Authenticleaders take the road less traveled.

5. They build teams and create communi-

ties. People are looking for a sense of com-munity in their work, a sense of connection.Authentic leaders create workplaces thatfoster linkages and lasting friendships.

6. They deepen themselves.Authenticleaders know themselves, nurture a strongself-relationship, know their weaknesses,play to strengths, and transcend fears.

7. They are dreamers. Authentic leadersdare to dream impossible dreams, new pos-sibilities. They create blueprints and fantasiesthat lead to better products and services.

8. They care for themselves. Taking careof your body is a sign of self-respect. Auth-

entic leaders eat well, exercise, care for theirbodies, and perform at high levels.

9. They commit to excellence rather thanperfection. Authentic leaders commit toexcellence in all that they do. They raise thestandards. What would your life look like ifyou raised your standards beyond whatanyone could ever imagine of you?

10. They leave a legacy. To live in thehearts of people is to never die. Success iswonderful; significance is better. You buildlegacy by adding value to everyone thatyou deal with and leaving the world better.

What would your life and leadership

look like, how brightly would your lightshine, if you stepped out of the limitationsthat keep you small and stretched yourselfinto the place that you know you are meantto be? asks Sharma. Authentic leadershipis all about being the person you know inyour heart you are destined to be. It does notcome from your title or paycheckit comesfrom your being and the person you are.

May you become a more authentic leaderthis year with Leadership Excellence. LE

C o u n t e r f e i t l e a d e r s h i p c o m e s a t a h i g h c o s t .

by Ken Shelton

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Authentic Leaders Add ValueE . 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

Bill George Robin Sharma


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But living systems, such as your bodyor a tree, create themselves. They arenot mere assemblages of their partsbut are continually growing. And, thegenerative field of a living systemextends into its environment and con-nects the two. For example, every cellcontains identical DNA information

for the larger organism, yetcells also differentiate asthey mature because cellsdevelop a kind of socialidentity according to theircontext and what is neededfor the health of the largerorganism. When a cellsmorphic field deteriorates,its awareness of the wholedeteriorates. A cell thatloses its social identityreverts to blind, undifferen-tiated cell division (cancer), which can

threaten the life of the larger organism.To appreciate the relationship

between parts and wholes in livingsystems, you simply need to gaze up atthe nighttime sky. You see all of the skyvisible from where you stand. Yet thepupil of your eye, fully open, is lessthan a centimeter across. Somehow,light from the whole of the sky mustbe present in the space of your eye.Light from the entirety of the night-time sky is present in every spacenomatter how small. This same phenom-enon is evident in a hologram, reveal-

ing that everything is in everything.In nature, the part is a place for the

presencing of the whole. This aware-ness is stolen from us when we accepta view of wholes assembled from parts.

Emergence of Living Organizations

Nowhere is it more important tounderstand the relation between partsand wholes than in the evolution ofglobal organizations and their systems.Global organizations are proliferating,along with the infrastructures they cre-

Alternative Future

WITH SO MANY SOCIAL SYSTEMSfamilies, companies, govern-ments, communities and societiesindisarray, it seems that the future doesnot look promising. The scenarios weimagine most easily reveal our worstfears rather than the desired legacy.

What can you do? To create theworld anew, youll be called to partici-pate in changes that are both deeplypersonal and inherently systemic,experience extraordinary moments ofcollective presence or awakening, andwitness the consequent shifts.

One such moment occurred inSouth Africa in 1990. Peter was co-leading a three-day workshop nearJohannesburg with black and whiteSouth Africans who were beingtrained to lead the program on theirown. Many took personal risks to par-

ticipate. On the last day of the pro-gram, the group heard President F. W.de Klerk give the speech that set intomotion the ending of apartheid.

Later, the group watched a video ofMartin Luther King, Jr.s I have adream speech and then expressedtheir feelings. One Afrikaans executivesaid that he had been raised to think ofhis counterparts as animals, and thenhe began to cry. As we watched this,we saw a huge knot become untied.

We now seek to understand betterhow such momentsand the forces

for change they signalcome about.The deep dimensions of transforma-tional change represent unexploredterritory. This blind spot concerns notwhat we as leaders do and how, butwho we are and the inner place orsource from which we operate.

Presence offers a theory of pro-found change, based on understand-ing the nature of wholes, and howparts and wholes are interrelated. Wetend to think of wholes as made up ofmany parts, assembled from the parts.

ate for finance, distribution, supply,and communication. This expansion isaffecting life for other species.

Historically, no individual, tribe, ornation could alter the global climate,destroy thousands of species, or shiftthe chemical balance of the atmos-phere. Yet that is happening today, asour individual actions are mediatedand magnified through the growingnetwork of global institutions. That

network determines what technologiesare developed and how they areapplied. It shapes political agendas asgovernments respond to the prioritiesof global business, international trade,and economic development. Itreshapes social realities as it dividesthe world between those who benefitfrom the new global economy andthose who do not. And it propagates aglobal culture of instant communica-tion, individualism, and materialacquisition that threatens family, reli-gious, and social structures.

So, rather than attribut-ing the changes sweepingthe world to a handful ofall-powerful individuals orfaceless systems, we canview them as the conse-quences of a life form thatcan grow, learn, andevolve. But until thatpotential is activated, orga-nizations will expandblindly, unaware of theirpart in a larger whole or of

the consequences of their growth.

While a living system continuallyre-creates itself, how this occurs inglobal organizations depends on ourlevel of awareness. Businesses andtheir members are places for the pres-encing of the prevailing systems ofmanagement. As long as our thinkingis governed by habitnotably by con-trol, predictability, standardization,and speedwell continue to re-createorganizations as they have been,despite their disharmony with theworld. Most global organizations havenot yet become aware of themselves as

living. Once they do, they can becomea place for presencing the whole as itmight be, not just as it has been.

When we act in a state of fear oranxiety, our actions revert to what ismost habitual: our instinctual behav-iors dominate, reducing us to fight-or-flight programming. Collective actionsare no different. Even as conditionschange dramatically, most organiza-tions continue to take the same actions.

Some learning occurs, but it is limit-ed to learning how best to react to cir-

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

LEADERSHIP PRESENCE

C o n s i d e r p r e s e n c e a n d p u r p o s e .

by Peter M. Senge, C. Otto Scharmer, Joseph

Jaworski, and Betty Sue Flowers


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cumstances. Reactive learning is gov-erned by downloading habitual waysof thinking, seeing the world withinfamiliar and comfortable categories.We discount interpretations andoptions for action that are differentfrom those we know and trust. We actto defend our interests. In reactivelearning, our actions are reenactedhabits, and we reinforce pre-set mentalmodels and seek to be right, regard-

less of outcomes. At best, we get betterat what weve always done, secure inthe cocoon of our isolated worldview.

Different types of learning are possi-ble. When we interview scientists andentrepreneurs, we ask them, Whatquestion lies at the heart of yourwork? These two groups illuminate atype of learning that could lead to aworld not governed primarily by habit.

If we see the larger wholes that gen-erate what is and our connection tothis wholeness, the effectiveness of ouractions can change dramatically.

In talking with scientists,we gain insights into ourcapacity for deeper seeingand the effects such aware-ness have on our under-standing and sense of self.In talking with entrepre-neurs, we see what it meansto act in the service of whatis emerging so that new in-sights create new realities.Both groups are talkingabout the process wherebywe learn to presence an emerging

whole, to become a force of nature.

The Field of the Future

When we become aware of thedynamic whole, we also become awareof what is emerging and our part in it.

Many entrepreneurs have createdmultiple businesses and organizations.Consistently, they feel that the entre-preneurial ability is an expression ofthe capacity to sense an emerging real-ity and to act in harmony with it.Many scientists, inventors, artists andentrepreneurs live in a paradoxical

state of great confidence and profoundhumilityknowing that their choicesand actions really matter and feelingguided by forces beyond their making.

Can living institutions learn to tapinto a larger field to guide themtoward what is healthy for the whole?What capacities will this require of us?

The core capacity needed to accessthe field of the future ispresencebeing conscious and aware in the pre-sent moment, listening deeply, beingopen beyond your preconceptions and

EVERY COMPANY IS A TRIBE OR NETWORKof tribesgroups of 20 to 150 peo-ple in which everyone knows every-one else, or at least knows of them. Itsa fact: birds flock, fish school, and peo-ple tribe. Tribes are more powerfulthan teams, companies, or superstarCEOs, yet their key leverage pointshavent been mappeduntil now.

Great leaders know they cant

instantly change the culture with gim-micks or trendy initiatives. They focuson developing their culture one tribeat a time. The heart of leadership devel-opment is helping leaders to upgradethe effectiveness of their tribes, takingthem from adequate to outstanding.

Tribal leaders focus on building thetribeor upgrading the tribal culture. Ifthey succeed, the tribe recognizes themas the leader, giving them discretionaryeffort, cult-like loyalty, and a record ofsuccess. Divisions and companies runby tribal leaders set the standard of per-

formance, from productivity and prof-itability to retention. They are talentmagnets, with people so eager to workwith them that they will take a pay cut.

Now you can better own your role asa tribal leader, and develop other leaders.

Five Stages of Tribal Culture

Tribes come in five flavors, markedby differences in talk and behavior.Tribal leadership starts with recogniz-ing which stage you have, and doesntstop until you reach Stage 5.

Stage 1 runs the show in criminal

clusters, like gangs and prisons, wherethe theme is life stinks, and peopleact out in despairingly hostile ways.This stage shows up in 2 percent ofcorporate tribes. Leaders need to be onguard, as this is the zone of criminalbehavior and workplace violence. Thebest way to intervene is to get mem-bers out of the group and into another.

Stage 2, the dominant culture in 25percent of workplace tribes, says, mylife stinks, and the mood is a clusterof apathetic victims. People in this

historical ways of making sense, let-ting go of old identities and the needto control, and choosing to serve theevolution of life. These aspects of pres-ence lead to a state of letting come,of participating in a larger field forchange. Then, the field shifts, and theforces shaping a situation can shiftfrom re-creating the past to manifest-ing or realizing an emerging future.

Understanding presence and the

possibilities for change can come onlyfrom many perspectivesfrom the sci-ence of living systems, creative arts,profound change experiencesandfrom direct contact with the generativecapacities of nature.

Weve learned that imagining alter-native futures, even negative futures,can actually open people up. Used art-fully, scenarios can alter peoplesawareness of their present reality andcatalyze profound change. The key tomaking potentially fearful futures gen-erative is to see that we have choices,

and that choices matter.Predictions of environ-

mental or social collapseusually evoke denial, fear,and paralysis. What if,instead, facing a globalrequiem scenario led us towake up, face our mor-tality, and realize that ourfuture cant be taken forgranted, that there isurgency to our present sit-uation, and that the time to

start living together differently is now?

We believe that such an awakeningor enlightenment is occurring world-wide, that we each carry within our-selves immense possibilities forconnecting to the universe and partici-pating in its generative process. Theinfinite or absolute and the phenome-nal, God and human, are inseparable,and we have the potential to co-createour realities. To do so, we must firsttranscend the myth of separationseparation from one another, from ourhighest selves, and from the generativeprocesses of nature. Awakening our

faith that the future can be differentfrom the past will mean rediscoveringour place, and that of our organiza-tions, in lifes continual unfolding. LE

Peter M. Senge is a Lecturer at MIT Sloan School of Mgmt.,founding chair of SoL, and author ofThe Fifth Discipline. C. OttoScharmer is a Lecturer at MIT, co-founder of SoL and the GlobalLeadership Initiative, and author ofTheory U. Joseph Jaworski ischairman of Generon Consulting, cofounder of the GLI, founderof The American Leadership Forum, and author ofSynchronicity.Betty Sue Flowers is director of the Johnson Presidential Library.They are coauthors ofPresence: Human Purpose and the Field ofthe Future. Email [email protected] or for booking PeterSenge as a speaker contact www.bigspeak.com.

ACTION: Create an alternative future.


by Dave Logan, John King and

Halee Fischer-Wright

LEADERSHIP TRIBES

Tribal LeadershipWhats your dominant culture?


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Judgment TrumpsExperienceChoose your candidates carefully.

LEADERSHIP JUDGMENT

But experience is no guarantee of goodjudgment. There is a huge differencebetween 20 years of experience thatadvances your learning and one yearof experience repeated 20 times.

In fact, past experiences may evenprevent wise judgments. Generals tendto fight the last war, refusing to facenew realities, almost always with dis-astrous consequences. In todays

dizzying world, we need to under-stand the beginners mind that rec-ognizes the value of fresh insightunfettered by experience. In this view,the compelling idea is the novel one.Judgment isnt quite an unnatural act,but it also doesnt come naturally. Weare not sure how to teach it, yet weknow it can be learned. Wisely process-ed experience, reflection, valid sourcesof timely information, an openness tothe unbidden and character are criticalcomponents of judgment as well.

Where to Cast Our Vote?The rhetoric of the two

leading Democratic candi-dates is becoming moreshrill, also more clarifying.Hillary Clinton and BarackObama have taken off theirgloves. In one corner standsthe champion ofexperience,with the best executive coachat her side and a dog-earedplaybook of strategies thathave won in the past.

Standing in the opposite corner is a

young contender, fairly new at thegame, underweight and probably over-matched, but a natural. Mr. Obama andhis handlers are putting their moneyon hisjudgment, disdaining the experi-ence card as a stale rerun of earliercampaigns, skewering Mrs. Clintonstwisty judgments about Iraq, and sub-tly pushing the present over the legacyof the 60s, destiny over dynasty.

One of Mrs. Clintons TV ads men-tions her experience five times. Bloggersalso highlight the themes of experienceand judgment whenever they describe

the fight between the Democratic frontrunners. Where do we put our money?

Yes, experience has value. But judg-ment, fed by solid character, shoulddetermine the choice of our next presi-dent. As David McCullough remindsus, Character counts in the presidencymore than any other single quality. LE

Warren Bennis is distinguished professor of business at theUniv. of Southern California, and Noel Tichy is professor ofbusiness at the Univ. of Michigan. They are co-authors ofJudgment: How Winning Leaders Make Great Calls (Penguin).

ACTION: Cultivate character-based judgment.

stage are passively antagonistic, andquietly sarcastic. Tribal leaders inter-vene in Stage 2 by finding those indi-viduals who want things to bedifferent, and mentoring themone ata time. If, over time, some start to talkthe Stage 3 language, invite them tomentor another member of the tribe.

In Stage 3, the dominant culture inhalf of U.S. workplace tribes, the themeis Im great or Im great, and youre

not.In this culture, knowledge ispower, and people hoard it, from clientcontacts to gossip. People at this stagehave to win, and winning is personal.Theyll out-work, think, and maneuvertheir competitors. The mood is a collec-tion of lone warriors, wanting helpand support and being disappointedthat others dont have their ambition orskill. Tribal leaders intervene here byidentifying peoples individual valuesand then seeing which cut across thetribe. Point out the values that unitepeople, and then construct initiatives

that bring these values to life.Stage 4 represents 22 percent of trib-

al cultures, where the theme is weregreat, and another group isnt.Stage 4is the zone of tribal leadership wherethe leader upgrades the tribe as thetribe embraces the leader. The leadertransforms tribes of individuals intoStage 4 groups, and the tribal leadersin these groups focus people on theiraspirations, and define measurableways to make a worldwide impact. Asthe tribal attention shifts from werebetter to we can make a global

impact, their culture shifts to Stage 5.Stage 5 is the culture of 2 percent of

the workforce tribes, where the theme islife is great and focuses on realizing

potential by making history. Teams atStage 5 produce miraculous innova-tions. The team that made the firstMacintosh was Stage 5, and weve seenthis mood at Amgen. This stage is pureleadership, vision, and inspiration.

Identify which of these five culturesdominates your tribe, and start elevat-ing your tribe to the next stage. Noticethe social groups or tribes that exist.

These are your tribes. Listen to the waythey talk. Is it life stinks (S1), my lifestinks (S2), Im great (S3), weregreat (S4) or life is great (S5)? Moveyour tribes to the next stage, until youreach Stage 5. When you move fromadequate to outstanding, youll producetribes that change the world. LE

Dave Logan, John King and Halee Fischer-Wright are coau-thors ofTribal Leadership (HarperCollins) and partners of theconsulting firm CultureSync. Visit www.JLSConsult.com.

ACTION: Elevate your tribe to the next level.

by Warren Bennis and Noel Tichy

THE LEADERS MOST IMPORTANT ROLE ISmaking good judgment calls inthree domains: key people, strategy,and crisis. Great leaders have a highpercentage of good judgment callsand they are good only if the executionsucceeds. The leaders second mostimportant role is to develop other lead-

ers who make good judgment calls.We have seen good calls

and bad ones. We haveseen leaders make so-soinitial calls and then man-age them in mid-air to pro-duce brilliant results. Andwe have seen leaders makespot-on inspired decisionsand then end up in theditch because they dontfollow through on execu-tion, or they look away andmiss a critical context change.

Often judgment is built upon lifeexperience, and yet certain peopleseem to possess inherent leadershipcharacteristics conducive to good judg-ment, or or they cultivate them bydeveloping broader and deeper rela-tionships, empathizing with others,being future oriented, or courageouslyacting in the absence of full knowl-edge. Judgment can be developedwhen it is a conscious process.

Our Study of Leadership

Our study of leadership leads us to

conclude that judgment regularlytrumps experience. Judgment is thecore of exemplary leadership. Withgood judgment, little else matters.Without it, nothing else matters.

We remember leaderspresidents,CEOs, coaches, generalsfor their bestand worst calls. Leadership is, at itsmarrow, the chronicle of judgmentcalls. These write the leaders legacy.We are not discounting experience.Leaders must draw on their seminalexperiences to inform their judgments.



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when somebody is falling behind inher commitments; when importantpersonnel matters arise, particularly ifthere is conflict; and in a crisis.

2. Generate ideas. A common frus-tration of leaders is a lack of idea peo-ple. A person who is innovative andcreative is a pearl to be treasured.Unfortunately, idea people are rarelyapplauded in organizations. Theyreoften at the periphery, because peoplethink theyre off the wall. But I want tohear what they have to say; its my jobto sift through ideas and decide which

ones have merit. Often the best ideassound crazy at first, but they work.

Executives, too, can come up withgood ideas, but often they are reluc-

tant to speak out. If Im in a meetingand people arent volunteering ideason a controversial subject, I tell themwere going to be there for a while.The silence gets so uncomfortable thateventually people start to talk.

3. Collaborate. Its surprising howmany people still resist collaborationor sharing credit, even though weknow how much more we can achievewhen we bring everyone to the table at

once. There can be practical reasonsfor thisfor example, it may not be insomeones financial interest to cooper-ate. But I expect people to trust that Iwill notice when they take an actionthat, say, costs their unit $2 million inthe short run but will benefit the com-pany overall in the long run.

4. Confront reality. People need toface up to the realities of their organi-zations and decide what adjustmentsare needed. Of course, if the leader isnot disposed to confronting reality, it

What Your LeaderExpects of You

THE RELATIONSHIPSbetween bossesand direct reports are

important ones and figure strongly inthe success of a team. While much iswritten about character traits andissues of leaders, we rarely talk aboutwhat leaders should expect from theirpeople. Over the years, Ive observedthat certain behaviors, on the part ofboth subordinates and bosses, are con-

ducive to productive and rewardingrelationships. Indeed, Ill favor some-one who exhibits the behaviors Iexpect over someone who doesnt,because I know the former has thepotential to contribute more to theorganization over time.

In sharing what I think of as theCEO compact, a set of expectationsboth from and for a leaderI hope tohelp other leaders and teams improvetheir relationships and performance.

Things to Expect from Direct Reports

These seven behaviors are power-ful individually, but taken togetherthey drive performance and growth inways that drive long-term results.

1. Get involved. Good executivesdelegate. They know when a situationcalls for their immediate involvement,whether its in redirecting resources toa product thats suddenly taking off inthe market, helping to resolve a break-down in quality, or visiting a plant todiscover why its productivity has fal-tered. Theres no excuse for not takingresponsibility when you see a problem

growing. I count on my reports to takethe blame for things that go wrongand give credit for positive develop-ments to their employees. And Iexpect them to have the courage todeliver bad news. If youve got toclose a plant, go to the plant and tellthose employees yourself. While thereare no hard-and-fast rules about whenyour involvement will have the mostimpact (thats a judgment call), I findthat good managers generally step inunder three types of circumstances:

makes it difficult for other people. Weneed leaders who have a thirst forinformation, who solicit and listen toother peoples views, and put clarityand simplicity on complexity. We needpeople who are willing to changewhen business realities dictate change.They are not insulated, pompous, oregotisticalin fact, they dont mindclimbing down from their position.There is a lot of strength in having the

same ethics and values, over time, butyou should be willing to change yourposition in the face of new facts.

5. Have the courage to risk failure.We need people who are prepared tolook at problem-solving in fresh ways.Some people only make decisionsbased on their experience. Other peo-ple take a clean piece of paper and findout if there may be a different solutionthan the traditional one. Those peopleare now in greater demand. Yes, peo-ple who go against the conventionoften get knocked down, but some of

that is their own fault because theydont present their ideas well. Some ofit is because they are in cultures wheretheir viewpoint isnt tolerated. Thosecultures will be under siege during thenext decade. You have to be in a placewhere your view is at least listened to.

6. Develop your leadership capability.Where will the leaders for tomorrowcome from? Youve got to developthem. They wont just rise through theorganization if you dont provide theright education, training, and incen-tivesif you dont pay for the right

things. In business you are always try-ing to judge who has growth potentialand then put more of a premium onpeople who have the desired character-istics and bring those people throughthe organization. You reward these peo-ple by promoting and compensatingthem in a positive way that suggestsyou want them to stay.

7. Show some initiative. You need toknow the problems and alternativesbefore you decide to change. You haveto have the intellect, savvy, and sense toknow what to leave alone. I talk about

initiatives as a way to get things done,to get the ball rolling, when confrontingchange. Im a proponent of Six Sigma,but it isnt this specific initiative thatmatters. It is the fact that you worktogether to achieve objectives. With anattitude of collaboration, you can intro-duce change measures more easily. LE

Larry Bossidy has served on several boards and is the past CEOof AlliedSignal and Honeywell, past COO of GE Capital, andvice chairman of General Electric. He is the coauthor with RamCharan ofExecution and Confronting Reality.

ACTION: Clarify what you expect from people.

by Larry Bossidy


LEADERSHIP EXPECTATION

A n d w h a t y o u s h o u l d e x p e c t .


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from where they originate. In this sen-sitive system, the most minute actionscan blow up into massive disruptions

and chaos. But it is also a world thatseeks order. When chaos erupts, it notonly disintegrates the current struc-ture, it also creates conditions for neworder to emerge. Change involves adark descent into meaninglessnesswhere everything falls apart. Yet if thisperiod of dissolution is used to createnew meaning, then chaos gives way tothe emergence of new order.

This world knows how to organizeitself without command, control, orcharisma. Everywhere, life self-orga-nizes as networks of interdependent

relationships. When individuals dis-cover a common interest or passion,they organize themselves and figureout how to make things happen. Self-organizing evokes creativity andresults, creating strong, adaptive sys-tems. New strengths and capacitiesemerge from new relationships.

In this world, the basic buildingblocks are relationships,not individuals. Nothingexists on its own or has afinal, fixed identity. Wereall bundles of potentiali-

ty. Relationships evokethese potentials. Wechange as we meet differ-ent people or are in differ-ent circumstances.

We create reality throughacts of observation. What

we perceive becomes true for us, and itis our own version of reality thatbecomes the lens through which weinterpret events. This is why two peo-ple can experience the same event orlook at the same information and havevery different descriptions of it.

This real world stands in stark con-trast to the world invented by Westernthought during the past 400 years. Webelieve that people, organizations, andthe world are machines, and we orga-nize massive systems to run like clock-work in a steady-state world. Theleaders job is to create stability andcontrol because, without human inter-vention, there is no hope for order.Without strong leadership, everythingfalls apart. It is assumed that mostpeople are dull, not creative, that peo-

Self-Organized Networks

SCIENTISTS HAVE DEVEL-oped a rich under-

standing of how livingsystems organize and function. Theydescribe lifes capacity to self-organizeas networks of interdependent rela-tionships, to learn and adapt, and togrow more capable and orderly overtime. These dynamics stand in starkcontrast to how we organize as hierar-chies and chains of commands.

Although many reject living sys-tems theory as inapplicable to thereal world of organizations, the real

world that appears in the daily newsreveals the dynamics of living systemsin human affairs quite clearly.

People often comment that the newleadership models derived from livingsystems and complexity sciencecouldnt possibly work in the realworld. I assume they are referring totheir organization, which they experi-ence as a predesignedbureaucracy, governed bypolicies and laws, wherepeople are expected to dowhat theyre told and wait

for instructions. This realworld of mechanisticorganizations craves effi-ciency and obedience. Itrelies on standard operat-ing procedures for everysituation, even when chaoserupts and things are out of control.This is not the real world.

This world is a man-made, danger-ous fiction that destroys our capacityto deal well with whats really goingon. The real real world demands thatwe learn to cope with chaos, to evoke

ingenuity and skills, to adopt strate-gies and behaviors that lead to order.

In this historic moment, we livecaught between a worldview that nolonger works and a new one thatseems too bizarre to contemplate.

The Real World

The real world as described in thenew sciences of living systems is aworld of interconnected networks,where slight disturbances in one partof the system create major impacts far

ple need to be bossed around, thatnew skills only develop through train-ing. People are motivated using fearand rewards; intrinsic motivators suchas learning, contributing and compas-sion are trivialized. These beliefs havecreated a world filled with disengagedworkers who behave like robots, strug-gling in organizations that becomemore chaotic and ungovernable overtime. And most importantly, as we

cling ever more desperately to thesefalse beliefs, we destroy our ability torespond to the challenges of these times.

Example: Terrorists

How is it possible that a few thou-sand enraged people can threatenworld stability? How is it possible thatthe most powerful governments onearth find themselves locked in a cost-ly and fearsome struggle, increasinglypowerless to suppress the actions of asmall group of fanatics? Global terrornetworks are among the most effective

and powerful organizations in theworld today, changing the course ofhistory. And they do this without for-mal power, advanced technology, hugebudgets, or millions of followers.

Terrorist networks do meet the cri-teria generally used to judge effectiveleadership. These criteria include theabilities to communicate a powerfulvision, to motivate people to workhard, achieve results, innovate, andimplement change. We ask leaders tocreate resilient organizations able tosurvive disruptions, that grow in

capacity, that dont lose their way, thatcontinue to progress through a succes-sion of leaders. If we apply these crite-ria to the leaders of terrorist networks,they receive high marks. In fact, wehave much to learn from them aboutinnovation, motivation, resiliency, andthe effective leadership of networks.

The lens of living systems allows usto peer into these terrorist networks,explore the causes of their success, andsee how to respond in ways that dontcontribute to their proliferation.

We fight blind in the war on terror

because we use factors that apply toour world, not to their networks.

Although these groups appear lead-erless, they are well-led by their pas-sion, rage and conviction. They sharean ideal or purpose that gives them agroup identity and which compelsthem to act. They are geographicallyseparate, but all of one mind. Theyact free of constraints, encouraged todo what they think is best to furtherthe cause. This combination of sharedmeaning with freedom to determine

by Margaret J. Wheatley


LEADERSHIP NETWORKS

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ones actions is how systems grow tobe more effective and well-ordered.The science thus predicts why terroristnetworks become more effective overtime. If individuals are free to invent theirown ways to demonstrate support of theircause, they will invent ever more destruc-tive actions, competing with one another

for the most spectacular attack.People who are deeply connected to

a cause dont need directives, rewards,

or leaders to tell them what to do. Aninsurgency is not a coherent organiza-tion whose members dutifully carryout orders from above, but a far-flungcollection of smaller groups that oftenact on their own. Movements thatbegin as reasonable often migrate tomore extremist measures, propelledthere by their members zealousness.

We can never adequately measureour success in disrupting a network byonly measuring how well we disrupttheir communications. The structure ofany network is horizontal, not hierar-

chical, and ad hoc, not unified. Thisdispersal makes it difficult to suppressany rebel group. Attack any single partof it, and the rest carries on untouched.

Self-organized networks are amaz-ingly resilient. Theyre filled withredundant nodes, so one picks up ifanother goes down. Networks organizearound shared meaning. Individualsrespond to the same issue or cause andjoin together to advance that cause.

If networks grow from passion, thenthe best strategy for immobilizing ter-rorist networks is not to kill their lead-

ers, but to defuse the sources of their anger,eliminating the causes of rage and stopinciting them further. As long as ouractions provoke their anger, we canexpect more terrorists, more extremeattacks, and more destabilization. If wedo not eliminate their rage, people willcontinue to form deadly networks. If wecontinue to seek to control it by exert-ing more pressure on those who hateus, who feel disconnected and impover-ished, we create a future of increasingdisorder and terror. To see a new wayout of this terrifying future, we must

understand the behavior of networks inthis interconnected world and ourastonishing capacity to self-organizewhen we care about something.

Lets open our eyes, change ourlens, and step forward into actions thatwill restore sanity to the real world. LE

Margaret Wheatley, EdD, is president emerita of The BerkanaInstitute, former Associate Professor of Management at BYUand Cambridge College, and author ofLeadership and the NewScience, Finding Our Way, and ASimpler Way. (801) 377-2996.Web: www.margaretwheatley.com or visit www.bigspeak.com.

ACTION: Strive to be in harmony with nature.

by Gary Bradt

They used their words and good inten-tions to drive positive behavior shifts,which drove a positive culture shiftand led to better business results.

3. Build the principles into all yourpeople performance and managementsystems. People tend to do what isinspected, not whats expected. Ensurethat your people and performancemanagement systems measure andreward behaviors consistent with your

guiding principles, and discourage orpunish the opposite. If employees seeleaders act in accordance with theprinciples and yet go unrewarded, orsee leaders defying the principles andstill getting perks and promotions,youre done. There has to be consisten-cy between what you say and do, andalignment between your words andactions. Also, screen for and hire peo-ple who share your values and natu-rally adhere to the principles. And,indoctrinate and immerse existingemployees in the new ways of think-

ing and behaving. Constantly repeatthe simple change message via allavailable means and venues.

4. Create a leadership developmentexperience that reinforces the behaviors

and values consistent withthe principles, and insist allsenior leaders attend.Words alone wont drivelasting behavior change.You have to reinforce yourwords with action. Oneway to do this is to createan experience-based lead-

ership development pro-gram that reinforces thevalues and behaviors con-

sistent with the guiding principles.Dont try to get everyone through atonce. Spread attendance and participa-tion over time. Each new class thenbecomes a renewable source of energyaround the guiding principles.

5. Expect resistance, but stay thecourse with passion and patience.Changing culture means changing peo-ple, and that takes time. Expect cyni-cism, skepticism, and resistance at first.

But as more people come through,including senior leaders who come backto facilitate sessions, more people buyinespecially when they see the leader-ship principles discussed in the class-room being lived in the field. The culturechanges, and with it, the business.

Creating a winning culture is simplewhen you follow these five steps. LE

Gary Bradt is a popular speaker and author ofThe Ring In theRubble. Visit www.GaryBradt.com or www.bigspeak.com.

ACTION: Create a winning culture.

IF I ASKED YOUR PEOPLE,

Whats it like to workat your company? their

answers would describe your culture.How would they respond? Would youlike what you hear? If not, change it.

Some leaders try to create culture bycarefully crafting vision, mission, andvalues statements. Culture is not creat-ed by words plastered on walls orcards, but rather by actions on theground. Its what leaders do: what theyinspect, what they reject, and what theyreward that shapes culture. A winningculture is defined by words so simple

that everyone grasps them easily.In winning cultures, leaders words

and actions are aligned. In losing cul-tures, happy talk masks dysfunc-tional behavior. A winning cultureemphasizes three areas:serving the customer,growing the business, anddeveloping employees. Alosing culture is confusingand complex, places cus-tomer needs behind thoseof the company, andemphasizes personal gain

over team achievement.To create or redefine the

culture, take five steps:1. Define three or four guiding prin-

ciples that define who you are as anorganization. Define in simple termswhat your organization is about. Oneclient companys culture was markedby mistrust and destructive internalcompetition. New leadership came inand defined the new culture: We areone national practice; we consider our cus-tomers in everything we do; we grow our

people; and we are committed to each

others success. The leadership then setabout making these words a reality.

2. Use the principles to guide everydiscussion. Words are meaninglessunless they spur new behavior. Onceyou define your guiding principles,use them to guide your discussionsand decisions. I constantly heard myclient refer to their guiding principlesin all gatherings, saying: Since we areone national practice, it makes sense todo this. Or, Will this course of actionserve our customer, or only serve us?

Winning CultureBuild one in five simple steps.

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ketplace. X-engineering is about har-monizing relationships to tap the fullintelligence and experience of all the

people in your network.When you look for opportunities to

X-engineer, keep in mind six princi-ples: 1) Follow the moneynot justinternal costs, but those of customersand suppliers. 2) Look for opportuni-ties to reduce capital expenditures forall participants. 3) Go broadexcesscosts are rarely attributed to a singleactivity or process, so look across pro-cesses to those of customers and sup-pliers. 4) Know what customers gothroughask about their realities andchallenges rather than their immediate

needs. 5) Chart breakdownstalk tocustomers directly and openly aboutproblems as they occur, which willprovide insight to expectations. 6) Fish

upstreamthe cost of a product, ser-vice, or process is largely determinedin its design phase. Participate withcustomers and suppliers in this phase.

Four Ps of X-Engineering

Attend to four Ps of X-engineering:1. Process. Yourprocessesall the

things you do to create and sell goodsor servicesincludes all the methodsinvolved in dealings with external

players such as customers, suppliers,distributors, partners, and sharehold-ers. X-engineering is not aboutautomating old processes but creatingnew ones that leverage IT. For exam-ple, most companies think of e-com-merce as a technical addition to theirbusiness. With X-engineering, technol-ogy is the backbone of their business.

2. Proposition. Theproposition isyour best effort to meet a customersneed through products and services.Whatever the proposition, it will stand

X-Engineering

THE MESSAGE OF RE-engineering the Corp-

oration was that workneeded to be redesigned or reengi-neered in terms of processes ratherthan tasks or departments. The impactof reengineering was internalthereforms ended at the company gate.

The technology revolution andglobal economic realignment demandthat leaders prepare for the next stageof transformation. Reengineeringmust now be extended to include allstakeholders, not just shareholders.

I wrote X-Engineering the Corporationto help managers confront challengesof connectedness and dependency.Where reengineering shows managershow to organize work around internalprocesses, X-engineering argues thatthey must now integrate processeswith other companies. The X standsfor crossing boundaries and alsomarks the spot where intuition joinstechnique and solutions emerge. X-engineering is the art and science ofusing technology-enabled processes toconnect businesses with each other, as

well as their customers, to achievedramatic improvements in efficiency.

X-engineering requires managers toask who should participate in creatingand delivering a business propositioncustomers, suppliers, partners andcompetitorsand how they shouldintegrate their processes.

The Internet is the central nervoussystem of X-engineering. The Internetallows organizations to become creatorsof change, not tools of change. Becausewe can now gather, analyze, and shareinformation with speed and sophistica-

tion, intelligence is raised dramatically.Every day, process-savvy companiesuse the Internet to exceed performancelevels unimagined 10 years ago.

The nature of competition todayleads companies to cooperate. Billionsof dollars could be saved if companiesshared processeswith customers andsuppliersthat are now redundant.

Connectivity is the hallmark of X-engineering. The future belongs tocompanies that recognize the primacyof relationships in the networked mar-

or fall on its ability to create new valuefor customers. The X-engineered orga-nization leverages its processes formaximum push and allows its cus-tomer maximum pull. The propositionsits at the intersection of those forces.X-engineering improves price, speed,quality, and varietycomponents of avaluable proposition.

3. Participation. What is the extentofparticipation with others in creating

shared processes? Creating compellingand distinctive propositions meansinvolving customers in the process.

4. Place. X-engineering is aplacewhere innovation is nurtured by aconstant flow of information and sup-ported by an invisible technologyinfrastructure. Its a place where ITimproves the human potential andwhere work has been redesigned tomake it less of a burden, more of a joy.

We have at least 25 years of majorprocess change to go because the pathto profits is paved with process.

Seven Steps to Success

To achieve X-engineering success,take these seven steps:

1. Gather and digest essential infor-mation about your customers. Developthe disciplines and processes neededto understand customer pull. Get toknow customers realities, situations,behaviors, expectations and values.

2. Segment customers, but not tooquickly. Segmentation is not an exactscience. While companies are buildingauthentic, unique knowledge about

individual customers, they shouldexpect to provide all customers with anequal level of service. Later, customerscan be segmented by their expectationsand valuesnot by size, buyingpower, or profitability. The goal is tomarket to a single customer segment.

3. Determine the compelling proposi-tion for each customer or customer set.Distinctiveness could come from a com-pelling proposition: best price, fastestdelivery or development time, bestquality, greatest choice, most innova-tive, or best integration of products and

services. When you know your cus-tomers needs, expectations and values,you can find compelling propositions.

4. Walk before you run. Some com-panies try too hard to develop finishedor sophisticated product offerings,which can lead to problems. The com-pany may not be able to execute theoffering or the customer may notunderstand the complex proposition.Start with a simple proposition, getmarket traction, and then build on it.

5. Look for partners who will help.

by Jim Champy


MANAGEMENT PROCESSES

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Consider with whom to work in deliv-ering a proposition. How might theproposition be enhanced by relation-ships with other companies? Whatform should these relationships take?

6. Focus on process redesign. Designprocesses with partners to deliver themost compelling customer proposition.

7. Measure performance through theeyes of the customer.Ask customerswhether a process push is meeting

their pull. If you cant differentiatewhat you sell or how you sell it, youllbe forced to sell at commodity prices.

Seven New Tenets

You need to adopt seven new tenets:Old: See the world as you want it to

be. New: See the world as it truly is.Today, you must be brutally honestwhen you measure performance. X-engineering begins with a fair assess-ment of where a company stands.

Old: Leave IT to the technologists.New: IT is everyones job. Without under-

standing technology, you must dependon others for advice to enhance well-being. Managers must ensure all theirpartners, too, are proficient with technol-ogy and can support X-engineering.

Old: Information is power; keepgood ideas inside the company. New:Share good ideas with customers and

partners as you search for better ideas.X-engineering challenges you to con-tribute to the collective intellect of cus-tomers, suppliers and partners.

Old: Exercise authority to gain con-trol. New: Gain control by relinquish-

ing it. You may be daunted by manag-ing in a network where you have nodirect authority over many of the peo-ple delivering your goods and services.Authority comes from giving it up.

Old: Manage change as an event andappeal to intellect. New: Manage changeas a campaign and appeal to feelings.Seek to understand the concerns andprejudices of the people who will dothe real work involved in the change.Be public about what you are doingand sensitive to broadly held beliefs.

Old: Your beliefs and values are your

business. New: Your beliefs and valuesare everyones business. You must besure your companys beliefs and val-ues work well with those of partners.

Old: If it aint broke, dont fix it.New: Relish change. Make a strong casefor change and provide inspiration.When change is well-executed, anappetite for it eventually develops. LE

Jim Champy is chairman of Perot Systems and author of X-Engineering the Corporation. Visit www.jimchampy.com.

ACTION: X-engineer your organization.

by Ira Chaleff

brainstorm ideas on how the organiza-tion can better achieve its mission andthat the group will keep its directsupervisors informed. Get your braintrust together and hammer out groundrules along these lines: Dont slack off on the current agen-

da set by senior management Hold meetings over lunch Dont become gripe sessions Initially focus on issues related to

operations and customer satisfaction Dont leak parts of your discussion

that could create confusion or concern Pick an initiative that gives the group

early achievement and credibility Implement it, if within your author-

ity to do so, and make it successful If outside your authority, communi-

cate your proposal in an acceptablemanner, asking for few resources

When you have a success, presentyour next best idea, requesting whatsupport is needed. At the same time,ask to be given formal working group

status so your group has some stand-ing. And be sensitive that there arepeople around you who would like tohave input and make sure that they do.

If you are a leader, your role is sim-pler but harder. Even if youfeel threatened, dont acton that feeling but reframethe upward initiative as aterrific opportunity tounleash the talent belowyou. With your supportand guidance, this newgeneration of leaders can

give you tremendous com-petitive advantage andmake you look very good.

Your role becomes the following: Become a political counselor Help frame the change manage-

ment strategy to minimize roadblocks Ask how you can help them Ask whether anything you are

doing is hindering them Do more helping, less hindering Give them credit for their successes,

knowing these will also reflect on you Share responsibility for the failures

or setbacks to earn respect and loyalty Courageously run interference

where you can and lend your staturewhere it will make a difference.

Mature leadership revels in terrificsubordinate leadership. Encouragingthis partnership can mark your tenurewith extraordinary accomplishment. LE

Ira Chaleff is President of Executive Coaching & ConsultingAssociates and author ofThe Courageous Follower. Visitwww.exe-coach.com.

ACTION: Facilitate subordinate leadership.

IT SEEMS NATURAL THAT

leadership shouldcome from the top. Is it?

In a broad sense, yes. Changes to mis-sion, policy and grand strategy requireapproval from the Board and CEO level.But notice I said approval. Often theimpetus and ideas for these percolateupwards to CEO and Board level.

Why? Most board members are notimmersed enough in day-to-day opera-tions to understand the changing land-scape until the need for change becomesurgent. Schedules of CEOs are oftenabsorbed in high-level interactions of a

political or financial nature that removethem from the operational realities andevolving customer behaviors that drivechange. Executives closest to the CEOhitch themselves to the CEOs train andare often caught in support-ing the CEOs agenda.

So who does this leaveto lead the action on theground? Often bright, com-mitted managers and pro-fessionals who are close tooperations and to the cus-tomer. They are brimming

with energy to improve theformer for the benefit of thelatter and, ultimately, forthe health of the organization.

And, being smart folks, they aresensitive to not encroaching on seniormanagements prerogatives, so theyhold back on acting on their ideas.

This pool of talent, typically youngerand not cynical, is often supercharged toimprove the way things get done. Givena platform and the blessing of top man-agement, they can lift a unit from anydoldrums. If not allowed expression,

these prime resources will either leave,or stay on with diminished enthusiasm.

So whats to be done?If you are oneof those in the middle chomping at thebit for change, Im putting the ball inyour court. Dont sit around waitingfor the results of the latest morale sur-vey to shock senior management intoaction. Instead, organize yourself tosupport senior management withoutwaiting for an invitation. Tell yourimmediate boss that a group of peopleat your level are getting together to

Let the Middle LeadPut the ball in their court.

MANAGEMENT MIDDLE

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changes are needed to arrive at the pre-ferred destination? What business arewe in long-term? How should the firm

change to meet fickle consumer de-mands? How should we shape internalsuccession plans? How are we develop-ing up-and-coming leaders to meetfuture challenges? The long-term mayseem far away, but it is as important asthe present for the leader. Your employ-ees do their best work in the present.As a leader you need to devote suffi-cient time to future work.

3. Be decisive. Prescribing a remedyfor an aircraft emergency requiresmaking consistent and timely deci-sions. Pilots can only make decisions

based on what is seen, heard and felt(airframe vibrations, extra weight onthe flight controls). In many cases, awingman can take a look at crippled

airplane to give any additional data.Otherwise, it is time to analyze theproblem and move toward a solution.Several years ago, when an engine fireindicator came on in the F-4 I was fly-ing, I turned directly toward the homeairport. Many student pilots wasteprecious minutes by working throughthe checklist before turning the air-plane toward a suitable landing patch.

Decision-making is a skill that any

successful business person will pos-sess. Awise leadership instructor oncesaid, Intent counts for more thantechnique. His point was to maketimely decisions for the good of theorganization. Youll never have 100percent of the data for a decision. Donot overly labor over a decision: Makeit, and you will learn something fromit if you are open, especially if thechoice turns out to be a blunder. If youare making few decisions, you are like-ly not learning much. Stay aligned

Emergency Leadership

IN MILITARY FLYING,training on emer-

gency procedures(EPs) is constant. Quick thinking anddisciplined responses are expected.

EPs raise emotion. EPs tax the mostskilled pilot, in spite of any outwardbravado. The idea behind repetitionand difficulty in training is to makethe real thing seem relatively easy andto increase the chances of a successfulconclusion. Although I despised EPsimulator flights, they are invaluablepreparation for real emergencies.

Here are five lessons from flyingthat relate to leadership.

1. Keep flying. When pilots encount-er an emergency, they tend to focus onthe emergency, often becoming toodistracted with a problem to fly safely.As a new Air Force pilot in a simula-tion ride, I once became so distractedfrom flying that I ran into a mountain.The instructors admonition, Youwould be dead right now if you hadbeen in an airplane was sobering.

In business, we cant shut down thecompany to redesign and rebuild it to

meet the latest marketplace needs. Thecompany must continue operating. Apractical leader will continue directingwhat should be achieved today whilehonoring timeless principles and con-tinuous improvement, constantly eval-uating if the current movement alignswith mission objectives. This is aboutachieving results, meeting competitivedemands, exercising courage and skill,and doing the right things.

2. Think long-term. If an airplane isin trouble, it is intuitive for pilots toland as soon as practical. Despite the

urgency, they must consider that canmake or break the outcome. What ismy fuel state? What is the nearest fieldthat can handle the emergency? Howfar to the ideal airport? What is theweather at the intended landing air-port? It is easy to be too caught up withthe urgent priorities of the presentwhile forgetting the long-term. Execut-ing a flawed business plan perfectlymay still assure the demise of the enter-prise. Leaders must consider: Wherewill current behavior lead? What

with mission, vision, and values but,by all means, make a decision.

4. Be flexible. Things can changewithout warning. What if my plandoes not work? One rainy day, I land-ed a F-4 with the hook down becauseof a hydraulic failure. The firm touch-down went as planned, but the hookbounced over the cable. Fortunately,my Weapons System Officer and I haddiscussed this possibility and stayed

on the runway to catch the oppositeend cable. Had we missed again, wewould have ejected from the aircraft.One tongue-in-cheek saying in the AirForce is flexibility is the key to air-power. Regardless of how pretty thestrategic plan looks, you will have toimprovise. This is where knowing andliving principled values will pay bigdividends. Stick to decisions as muchas practical but do not run your com-pany over a cliff for sake of your ego.If the market needs change, adapt.Make another decision. Be flexible.

5. Have an out. One staple of forma-tion flying of two or more aircraft is therejoin where one airplane overtakesanother aircraft with speed, geometry,or both. Every good formation flieralways has an out in case the unexpect-ed happens. In the military, there is adesignated formation leader, but allpilots in formation have basic responsi-bilities to keep everything safe. Asavvy aviator will constantly assessand adjust the rejoin maneuver and thePlan B should something go wrong.

Once as a new F-4 pilot in a practice

fight, two of us converged on the sametarget, belly to belly. Thankfully I hadan experienced backseater who yelled,Belly check! Upon rolling inverted andseeing the imminent mid-air, I wrackedthe airplane in an opposite direction,and we all lived to fight another day.

As the leader, you may not want toadmit your Plan B publicly. You maynot have a good alternative. Always bethinking. If all your grand schemes fallapart, what will you do? How will yourecover and keep the enterprise viable?How will you rally the troops to pick

up the pieces? Always be a few stepsahead of those you lead. Be smart andready to improve a good plan withgreat execution.

Keep flying, think long-term, bedecisive, be flexible, and have an out.Simple yet helpful steps to makingyour leadership skills shine. LE

Mike Friesen is a leadership coach of Leading Strategies(www.leadingstrategies.net). He retired from the U.S. militaryas a Lt. Col. and was a pilot in the F-4 Phantom and F-15Eagle. Email [email protected].

ACTION: Apply what you know about leadership.

by Mike Friesen

L e a d e r s h i p E x c e l l e n c e 1 1

LEADERSHIP EMERGENCY

F i v e l e a d e r s h i p s e c r e t s o f a n a v i a t o r .


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those brilliant ideas that you apply toyour clients businesses in a dynamic,continuing dialogue with your market.This will help you evolve your ideas

as the world changes around you, andwill help you establish yourself as aleader in your field.

What Constitutes a Thought Leader?

Over the past several years Ivebeen listed as a thought leader severaltimes. This was the culmination ofmany years of work, and some goodfortune. Many wonderful teachers,including Frances Hesselbein and PaulHersey, helped me along the way.

To date Ive written 22books and one best-seller,

What Got You Here Wont GetYou There. Ive publishedarticles and columns inbusiness publications. Ispeak a lotabout 100 daysa year. I work with peopleinside corporations, forexample the top 2,000 lead-ers at Kaiser Permanente,Johnson & Johnson, andBellSouth. Ive been teaching the UBSHigh Potential Program for at leasteight years. I have also taught atWharton School, University of

Michigan, Oxford, Cambridge,London Business School, and many ofthe top business schools. I givekeynote speeches for different associa-tions and organizationsaddressingaudiences from six to 6,000 people.

Editors of many business magazineshave interviewed me, including Forbes,Harvard Business Review, and The NewYorker (listen to the audio version onwww.MarshallGoldsmithLibrary.com).In addition, there have been manypress mentions, from as far away asSaudi Arabia. I have over nine million

frequent flyer miles because I find thatin order to have a global presence, Ihave to be present globally. A typicalitinerary might be from San Diego toHong Kong, to Singapore, to SaudiArabia, to London, to Houston, andback in two weeks.

The November issue ofLeadershipExcellence, included a list of top 100thought leaders in the leadership field,and ranked them using a list of eightcriteria:preparation (academic and pro-fessional, character (including values,

Thought Leadership

ethics, beliefs, purpose, mission, integ-rity, and walking the talk),principles(your message, point of view, tenets,main points),personality (charisma,style, originality, authenticity, one of akind),performance (inspiring action,real-world performance, work ethic),experience (national and internationalreach), expression (substance and stylein writing, speaking, coaching, consult-ing, mentoring, training, or teaching),

and influence (making a difference,results, change, transformation).

Many of these qualities could applyto internal thought leaders as well.

Develop a Thought Leader Initiative

I invite you to think what the orga-nization wants and needs from itsinternal thought leaders. What wouldbe the benefit to your organization ifyou were to develop internal thoughtleaders? What are the core compe-

tences of your organiza-tions success? What types

of expertise do your poten-tial thought leaders pos-sess? Is your organizationready for a thought leaderinitiative?

Its important to recog-nize that not everyone willhave the same ambitions.Some of your internalexperts are happy just

making their living practicing theirprofession. You can look for ways theycan add value to areas of your organi-zation beyond their own division, even

if they dont want to make the effort toattain thought leadership in the largerexternal market.

Think about your own role andwhat resources you can commit tochampioning this new initiative. It canmean a change in culture and roleexpectations within your organization.What can you do to increase buy-inand value to those participating?

Be very clear about your own goalsfor the project. How much time, realis-tically, can you devote to developingthis project? Who in your organization

supports this initiative? Who is not asenthusiastic and how important is theirsupport to the success of your venture?

How will your goals shift as youplace a priority on thought leadership?What needs to change? Who will beinvolved? How can you integratethought leadership goals into goalsalready set for your company? It willtake a team of people to make thiswork. Do you have the right people onyour team, and do they have sufficienttime to be an effective team member?


LEADERSHIP THOUGHT

I t c o m e s f r o m o u t s i d e a n d i n s i d e .

by Marshall Goldsmith and Marilyn McLeod

IF YOU ARE CHARGED WITH LEADERSHIPdevelopment, you should be identi-fying both external and internalthought leaders and their area ofexpertise, especially as it relates to thebig problems and opportunities inyour organization this year. Think ofways to tap their expertise for presen-tations, coaching, training, and men-

toring. Just remember: most thoughtleaders (whether internal or external)are specialists. You cant expect themto add great value outside of theirfairly narrow area of expertise.

Start by drawing up a list of poten-tial thought leadersincluding theirarea of expertise, current position,achievements, publications, mediacoverage to date, and availability.Now, list opportunities for improve-ment and paint a picture of the valuethat thought leaders could add byapplying their expertise in these areas.

Companies known for thought lead-ership in certain areas, such as Disney,have identified what they want to beknown for (i.e., service excellence) andformed the Disney Institute to out-source their internal expertise, addinga new source of profit and buildingtheir brand equity. They now offercourses on the Disney approach toorganizational creativity, people man-agement, leadership, quality service,and loyalty. They teach their successformulas so participants can learn andadapt Disneys principles and practices

back in their organizations.Disney has even taken this idea

beyond the classroom by openingtheir parks for real-time object lessons,providing participants with a personalexperience of their culture and exper-tise within the Walt Disney WorldResort. They find that the learning iseven more powerful when they letpeople observe how we do it.

Public recognition of your thoughtleadership will not happen overnight,nor is it guaranteed. Communicate


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mission and purpose (the reason wework together). Our values and princi-ples are guidelines that help us get towhere we want to go as a team.

In football, plays are not designedto be universal, rational, and theoreti-cally elegant. The training is not aboutabstract ideals. No, all of it is linked tothe purpose of scoring touchdowns andwinning games and championships.Thats what motivates players to work

out and to run the plays well.Plato and Aristotle thought about

ethics this same way: self-control,courage, wisdom, and justice are fourcardinal moral virtues because thesecharacteristics enable us to achieve ourpurpose and be happy. Sharpness is theleading virtue of a knifebecause thepurpose of a knife is to cut things. TheTen Commandments also have this struc-ture. The second through tenth com-mands (honor parents, no murder,theft, false witness) are corollaries ofthe first commandment about whos

going to be god here. Our gods deter-mine our goods in this sense.

The vital step toward sound ethics isto get clear about an inspiring and uni-fying mission. Purpose, mission, and

vision are integral to sus-tainability, success, andexcellence. Ethicsdoingthe right thingis as linkedto purpose, mission, andvision as business successand excellence. Why shouldthat surprise us? For Plato,Aristotle, and the classical

Greeks, arte was the termfor both moral virtue andexcellence. Ethics is about

excellencenot just jail avoidance.We can never promise that good

ethics will always result in profitablebusinesses and successful careers.Sometimes, in fact, choosing to do theright thing may cost our business orcareer. Great leaders argue that it ispreferable to live a life of integrity andpride, even if it means suffering, ratherthan living a life as a weak, moral sell-out (even if selling out results in gain).

Sound ethics is an integral compo-nent in excellent companies and suc-cessful careers. Treating people andnature right pays off in terms of excel-lence: fulfilling our mission and vision.Great leaders learn how to preach per-suasively as well as practice consistent-ly the ethics/excellence message. LE

David W. Gill is Professor of Business Ethics at the GSB, St.Marys College, an ethics consultant and trainer, and author ofIts About Excellence: Building Ethically Healthy Organizations(Executive Excellence Publishing). Visit www.ethixbiz.com.

ACTION: Practice the ethics/excellence message.

SUCCESSFULCOACHES AND

teams study theirupcoming opponents,

looking for potential problems and fig-uring out how to respond effectively,containing or neutralizing threats.

While dealing with potential prob-lems is a part of good coaching, greatcoaches and winning teams dont justfigure out how to respond to threatsthey figure out how to use their ownstrengths to dictate the action. They areproactive, not just reactive.

Likewise, if ethics is only thought ofas a response to problems, threats, or

scandals, something is missing. If theethics team is just an emergency crewrushing to help out in times of crisis,the bleeding may be limited, but acci-dents wont be prevented. Sadly, thatsthe way ethics is viewedas reactive, negative, nar-row damage-control. Sure,it must be done, but what awaste if thats all we do.

How did we get to thispoint in our approach toethics? The 17th and 18th

century Enlightenment

pushed moral philosophytoward a search for scien-tific, universal, rational,abstract moral laws independent ofspecific communities with their partic-ular purposes, feelings, traditions, andcultures. As the 20th century unfolded,this experiment came to be viewed asa failure, even an impossibility.

Thus, unable to agree on universalmoral laws, and surrounded by a grow-ing cultural and linguistic diversity,the ethical focus moved to particularcases and dilemmas. We dont have

the same religious, philosophical, orcultural backgrounds. We are unable toagree on any universal moral laws, butwe do share this or that specific prob-lem. Ethics became a defense mecha-nism, a strategy of damage controlfor those confronting hard cases.

There is a better way. I call it mis-sion-control ethics. This means thatour ethical motivation (the reasons wetry to do the right thing) and our ethi-cal guidelines (our values and princi-ples, our code) grow out of our shared

Excellence and EthicsFrom damage- to mission-control.

by David W. Gill

ETHICS EXCELLENCEAre they clear on your vision, and areyou all on the same page?

What Does it Take to Be a TL?

From the thought leaders point ofview, branding comes into play. Whatdo you want to be known for? Yourthought leadership is your brand.

One guideline is to do what youlove. I love what I do. Im never goingto retire. If you do what you love, it

doesnt feel like work. Most realthought leaders in my field neverretire. For example Richard Beckhardand Peter Drucker never retired. Manythought leaders retire when they die!So my first suggestion is that thoughtleaders should love what they do.Internal thought leaders can be chosenby their dedication to the specialty.

Second, pick something unique andlearn all you can about that one topic.Thought leaders need to be a worldexpert at something. I have a clearlydefined mission. My mission is to help

successful leaders to achieve a positive,long-term change in behavior for them-selves, their people, and their teams.Thats all I do. If you want to be aworlds expert, youve got to be theworlds expert at something. Pick some-thing that you love, become a worldexpert at that, and develop a brandidentity around it. Internal thought lead-ers can be more specialized than externalthought leaders by focusing on the com-panys unique market and industry.

Third, thought leaders need to paythe price. Its not complicated. The

price is speaking, writing, networking,building relationships, making thoselong-term investments that dont nec-essarily produce short-term revenue,but make a long-term difference. Youprobably wont get paid to write arti-cles and do interviews. But its a posi-tive element for the long term. Internalthought leaders can speak at industryconferences, functional conferences, ormarket conferences that are importantto the company. They can write in in-dustry journals and company publica-tions and work with external thought

leaders on shared publications.By knowing external thought lead-

ersand developing internal thoughtleadersyou become better preparedto face future learning challenges. LE

Marshall Goldsmith, co-founder of Marshall Goldsmith Partners,is author ofWhat Got You Here Wont Get You There (Hyperion).Call 858-759-0950, email [email protected], orvisit www.MarshallGoldsmithLibrary.com. Marilyn McLeod isFounding Director of Thought Leader Partners at the MarshallGoldsmith School of Management, Alliant University. Call760-644-2284, email [email protected], or visitwww.CoachMarilyn.com. or visit www.bigspeak.com.

ACTION: Develop internal thought leaders.

L e a d e r s h i p E x c e l l e n c e 1 3


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target of expense reduction by makinga few changes to our process. Lets dis-cuss this approach, and you decide if itis something you can support.

In this statement you see the deci-sion elements at work. By stating yourconfidence when you put forth an ideafor others to decide on and treating fol-lowers as decision-makers, you have agreater chance of being heard with anopen mind and gaining credibility.

Unfortunately, planning and logicalone cant guarantee that a plan orstrategy will result in commitment.Commitments are whole-hearted decisions, and thatmeans engaging the heart(emotions) as well as the

head (logic.) Not everyonesees the same informationthe same way. Becauseemotions shape logic, theway we look at informationis different if we are fearfulthan if we are interested.

Opening conversations with a well-stated decision goal establishes rap-port, openness, and trust. Also, thislets your followers know they are thedecision-makers so they feel safer talk-ing and revealing their true attitudestoward a plan.

A followers potential attitudes arepositive, negative, or neutral. However,since attitudes are situational, they canchange moment-to-moment. So, whenwe talk about attitudes, we mean atti-tudes in the moment. Exceptional lead-ers intuitively recognize momentarychanges in attitudes or points of viewin a conversation. They focus more onhow something is said, and by that,what is said makes more sense.

Recognizing and adapting is whatenables leaders to influence others. Forexample, when you give someone

directions to your home or office, youfirst determine the other persons start-ing point. The directions you then givevary based on where the other personis at that moment in time. The same istrue for leadership interactions.

If a potential follower considersyour goal and strategy difficult to exe-cute, then you must simplify both. If afollower sees a plan as risky, you miti-gate or eliminate the risk. If a followeris skeptical, you provide proof. Becausefollowers have different attitudes, you

Cracking the Code

need a range of responses that makesense to potential followers. The key tofinding the right response is to havefollowers share their points of viewand how they see a situation. You thenknow from your followers perceptivewhat is difficult, risky or unbelievable.

Regardless of a potential followersresponse, you must treat followers seri-ously so they talk openly or seriouslyconsider your goals and strategies.

Acknowledging their point of viewand taking them seriously are easierwhen you do the following: Give 100 percent attention: Prove

you care by suspending all other activ-ities (no email, phone calls, or televi-sion) Also, suspend your own point ofview and show interest in what theother person is saying. Respond: Responses can be both

verbal and nonverbal(nods, expressing interest).The key is to show that youreceived the message, and

that the message had animpact. When responding,speak at the same energylevel as the other person.Then you know you reallygot through and dont haveto keep repeating.

Prove understanding: Saying I under-stand is not enough. You need to proveunderstanding by occasionally restat-ing the gist of an idea or by askingquestions which prove you know themain idea. You are proving you under-stand, not proving you are listening.

The difference in these two intentionstransmits different messages whenpeople are communicating. Prove respect: Take others views

seriously. Telling someone, I appreciateyour position, or I know how you feel, sel-dom helps. Such responses are usuallyfollowed by the word but and yourviewpoint. Instead, show respect forthe other persons view by communi-cating at his or her level of understand-ing and attitude. An adjustment in toneof voice, rate of speech, and choice ofwords shows you are imagining being

where the other person is at the moment.Rapport acknowledgements help

others sense they are being taken seri-ously; in turn, they will take you seri-ously as their leader. Understandingthat successful leaders are great follow-ers first will assist you in becoming abetter, more effective leader. LE

G. Thomas Herrington and Patrick T. Malone are SeniorPartners at The PAR Group, a leadership development organi-zation and co-authors ofCracking the Code to Leadership.Email [email protected] or visit www.thepargroup.com.

ACTION: Seek whole-hearted followership.


LEADERSHIP EFFECTIVENESS

Successful leadership begins with great followership.

by Thomas Herrington and Patrick Malone

FOR DECADES, EXPERTS HAVE SAID THATleadership is intangible and un-measurable. But great leadership isclearly measurable. Leaders are deter-mined by their followers. No follow-ers. No leader.

In business, leadership occurs at alllevelsfrom the executive suite to theshop floorand at every level in

between. Influential leaders, no matterwhat title they have or role they play,are those with willing followers.

Leadership is getting wholeheartedfollowers for a given course of action.Unfortunately, many potential leadersignorefollowership and focus insteadon being more engaging, convincing,or interesting. Or, sometimes, they relyon their positional power and end up,not with committed followers, butwith agreements at best, compliance atworst, and marginal business results.

Whole-hearted implies leaders have

engaged their followers emotionallyand intellectuallyboth in the heartand head. Whole-hearted also impliesthat the follower decides whether ornot to give his or her commitment.

Most people start their leadershipinteractions by establishing a commongoal. Leaders understand the differ-ence between goals and strategies.Goals are outcome-oriented, startingwith the end in mind. Strategies areplans for reaching a goal.

Now, how do you gain willing fol-lowers and whole-hearted commitments?

The first step starts with the conver-sation you have with a potential fol-lower. Here you express your decisiongoals, and you include three criticaldecision goal elements: 1) a confidentstatement of the goal which has valueor benefit to the potential followers; 2)an invitation for followers to look at orlisten to the goal and strategy; and 3)an acknowledgement that the poten-tial followers are decision-makers.

Take this conversation opener as anexample: I believe we can reach our


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sioned action. These leaders give theimpression of expecting a lot from oth-ers, but not much from themselves.

Since you do not know or trust theirintent, you give compliance, but notcommitment.

What Is Leadership Form?

While essence is the foundation ofeffective leadership, it must be supple-mented by the skills and knowledgeneeded to execute on those values andprinciples; otherwise, the leader failsto produce tangible results. This iswhat we call leadership form.

In the past, leaders were encouragedto play two central roles: managers (do

things right) and leaders (do the rightthings). Todays multi-generationalwork force, more knowledgeable andeducated employees, greater reliance

on cross-functional collaborations, andglobal work teams all require leadersto fulfill four core roles: visionary, tac-tician, contributor, and facilitator.

Each role has a mission to achieve.The visionary sets direction; the tacti-cian puts plans and processes in place;thefacilitator ensures that team mem-bers and stakeholders are on board;and the contributor ensures that theleaders talents are used. Great leader-ship means effectively integrating the

four roles with leadership essence.A leader doesnt choose roles based

on his or her personal style; rather, thefour are complementary components ofevery leadership position. Whileemphasis on each role may change withposition and level, all four roles arealways required for effective leadership.

Leading with Form and Essence

How can you lead with form andessence? We believe that you mustdevelop form and essence to improve

Form and Essence

THE PURPOSE OF Aleader is to engage

others in committingtheir full energy

leadership excellence 0208

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