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Level Three Leadership Jim Clawson Darden Graduate School of Business University of Virginia 1 What are the biggest challenges you face today? 2 © James G. Clawson Levels of … CHALLENGES & LEADING SOCIETAL ORGANIZATIONAL WORK GROUP INDIVIDUAL 3 © James G. Clawson People learn best and most deeply when … 1. 2. 3. 4. 5. 6. 7. 4 8. They believe that their work will be They try to answer questions or solve considered fairly and honestly; problems they find interesting, intriguing, important, or beautiful; 9. They believe that their work will matter; They can try, fail, receive feedback, and try again before anyone makes a judgment 10. They believe that intelligence and of their work; abilities are expandable, that if they work hard, they will get better at it; They can work collaboratively with other learners struggling with the same 11. They believe other people have faith problems; in their ability to learn; They face repeated challenges to their 12. They believe that they can learn. existing fundamental paradigms; They care that their existing paradigms do not work; They can get support (emotional, physical, Source: The Research Academy for University and intellectual) when they need it; Learning at Montclair State University – They feel in control of their own learning, Montclair, New Jersey not manipulated; Developed by James Clawson Leadership means … LEADing STRATEGic 5 © James G. Clawson CHANGE Key Leadership Initiatives Developing Influence OTHERS LEADER Designing Organizations RELATIONSHIPS Creating Quality HR bonds 6 © James G. Clawson ORGANIZATION Strategic Thinking STRATEGY Managing Change Key Leadership Questions 3. Can you “sell” your story? 1. Who are you? 2. What’s Your “story?” LEADER Developing Influence OTHERS (traits) Strategic Thinking Designing Organizations (priorities) (employees) 4. Does your organization help or hinder? 7 © James G. Clawson STRATEGY ORGANIZATION (design) 5. Can you lead change to keep up? Elements in Effective Leadership: Who are You? Creating Self Awareness ENVIRONMENT SELF RESULTS OTHERS TASK ORGANIZATION 8 © James G. Clawson Balanced Scorecard Financial Customer Operations Learning & Growth Does experience lead to wisdom? “Most people do not accumulate a body of experience. Most people go through life under-going a series of happenings which pass through their systems undigested. Happenings become experiences when they are digested, when they are reflected on, related to general patterns, and synthesized.” Saul Alinsky, Rules for Radicals, quoted by Henry Mintzberg in “The Five Minds of a Manager” HBR 11/03 9 Levels of Human Activity HABITUAL? 1. Visible Behavior 2. Conscious Thought 3. VABEs (values, assumptions, beliefs, and expectations) 10 © James G. Clawson 75% 85% 95+% Leadership is not about title. What’s your (habitual) Point of View? POV Things they say… Follower’s Point of View? Bureaucratic Point of View? Leader’s Point of View? Your point of view doesn’t depend on your title… 11 © James G. Clawson The Leadership Point of View 1. Do you SEE what needs to be done? 2. Do you UNDERSTAND ALL of the forces at play? 3. Do you have the COURAGE TO ACT to make things better? 12 © James G. Clawson The Formative Years … Transcender? GENES GENES ADD ADHD BPD OCD Etc. Key Questions 13 1. When I’m cold… 2. When I’m hungry… 3. When I’m wet… 4. When I’m alone and afraid… © James G. Clawson K, L, A IN Locus of Control EX VABEs MEMES Generation to Generation Two key legacies Newborn Choice Theory (Glasser) 1. IKWRFY 2. IHARTTYWRFY 3. IHARTPYIYDDWRFY The Number One Question in Life Will you ever be anything more than a vessel transmitting the genes and memes (VABEs) of previous generations on to the next? When you’re no longer a defenseless child, will you become a transcender? 14 © James G. Clawson VABE based Behavior: The missing variable L3: VABEs EVENTS L2: CONCLUSIONS L1: BEHAVIOR FEELINGS 15 © James G. Clawson Beware your Blind Spots! Enhancing Self Awareness OTHERS SEE SEE PUBLIC SELF NOT SEE 16 © James G. Clawson BLIND SPOTS NOT SEE PRIVATE A Personal Developmental Balance Wheel Social 10 Physical 8 Parental Intellectual 6 World Class 4 Marital 2 Spiritual 0 Familial Material Professional Political 17 Emotional © James G. Clawson Financial A Personal Developmental Balance Wheel Social Physical Parental Intellectual Marital Spiritual 0 2 Familial Material 4 6 8 Political Emotional 18 © James G. Clawson Professional 10 Financial A Personal Developmental Balance Wheel Social Physical Parental Intellectual Marital Spiritual 0 2 Familial Material 4 6 8 Political Emotional 19 © James G. Clawson Professional 10 Financial The dangerous “outside-in” nature of corporate goals. 100% Assertiveness OUTSIDE 50% INSIDE 0% 20 © James G. Clawson FEAR OF REJECTION Are you leading your own life or living outside-in? 21 21 Summer 2009 © James G. Clawson Is leading self about managing time? 22 © James G. Clawson Leadership is about managing energy, first in yourself and then in others. 23 © James G. Clawson What happens when one crosses the divide between choice and obligation? CHOICE 24 © James G. Clawson Energy? Productivity? Creativity? Innovation Engagement? Commitment? Buy-In? OBLIGATION The obligatory commute … 25 © James G. Clawson Managing Energy Energizers Drainers 26 © James G. Clawson How do you want to feel? 27 © James G. Clawson FLOW Time warps (slow or fast) Lose sense of self Intense focus Perform at highest level Seems effortless (flow) Internally satisfying Regain larger sense of self Adapted from FLOW by Mihalyi Csikszentmihalyi 28 © James G. Clawson Does how you feel affect your performance? How many times have you been asked by supervision at work how you want to feel? How do you WANT to feel? The pervasive management assumption: PWD WTHTD ROHTF This is a formula for mediocrity. 29 © James G. Clawson NEWBURG’S CAREER SAMPLES World Class Athletes Touring Musicians Heart Surgeons Extraordinary Executives Warriors/Naval Aviators 550 World Class Performers 30 © James G. Clawson The Resonance Model dream revisit your dream preparation obstacles 31 © James G. Clawson Doug Newburg, PhD Examples of Feel … Easy speed (Jeff Rouse) Playing to win at the highest level 32 © James G. Clawson (Dawn Staley) Out of my chest Being at one with my surroundings Peaceful, satisfied, alive Buoyant, connected mastery Light, unhurried, and engaged. Focusing on Feel to Perform Dave Scott 49, Six-time Ironman Hawaii Champion “During a race, I never wear a wristwatch, and my bike doesn’t have a speedometer. They’re distractions. All I work on is finding a rhythm that feels strong and sticking to it.” 33 © James G. Clawson Outside, 9/03, p. 122 Be careful of the “achievement orientation” Energy 34 © James G. Clawson Other dangers of the achievement orientation: 1. Winning at any cost 2. Making the numbers is #1 3. Emerging hollowness 4. Character and ethical implications What’s the difference between “work” and a “job?” “I stopped loving golf at exactly the time I decided to turn pro.” - Tom Weiskopf , Golf, July 2004, p. 133 People pay me a lot of money to go away from my family, stay in cheap motels, ride on the bus all night, and eat rubber chicken. But when the curtain goes up and the light on the camera goes on, THAT I do for free. - Grammy winning musician 35 © James G. Clawson Typical Reaction to Obstacles: Getting stuck in the “Duty” Cycle dream preparation 36 © James G. Clawson s obstacles s What is “success?” Money? Fame? Power? “afterward, you want to do it again.” 37 © James G. Clawson How do you approach your work? dream revisit your dream Preparation/work obligation 38 © James G. Clawson Resonance is a question of harmony between inside and outside “I think that what we’re seeking is an experience of being alive, so that our life experiences on the purely physical plane will have resonance with our innermost being and reality, so that we actually feel the rapture of being alive.” - Joseph Campbell, The Power of Myth, 1988 39 © James G. Clawson The Pursuit of Excellence "Excellence is attained by those who care more than others think is wise, who risk more than others think is safe, who dream more than others think is practical.“ Bud Greenspan 40 © James G. Clawson Five Key Questions 1. How do I want to feel today? 5. What are you willing to work for? 4. How can I 2. What does it take get it back? RESONANCE to get that feeling? 3. What keeps me from that feeling? 41 © James G. Clawson THE PURPOSE OF LIFE Find Your Resonance Invest in Your Resonance Enjoy Your Resonance Help Others Find Their Resonance 42 © James G. Clawson If you want more on the FEEL PERFORMANCE relationship … 43 © James G. Clawson Elements in Effective Leadership: Strategic Thinking, Creating Your Story ENVIRONMENT SELF RESULTS OTHERS TASK ORGANIZATION 44 © James G. Clawson Balanced Scorecard Financial Customer Operations Learning & growth Defining Growth Trajectories C Response NEEDS D A $XB Global B Push Past Your Share Existing New CUSTOMERS 45 © James G. Clawson Charan and Tichy Porter’s Five Forces Model NEW ENTRANTS SUPPLIERS INDUSTRY COMPETITORS SUBSTITUTES 46 © James G. Clawson BUYERS GENERAL VALUE CHAIN Raw Transport Materials Processing Forming What’s your value chain? What are the margins in each link? Where are your competitive strengths? Where is your strategic intent? Service 47 © James G. Clawson Sales Assembly Distribution Balanced Scorecard Profitability (FINANCES) Customer Satisfaction (MARKETING) Core Capabilities to Deliver Satisfaction (OPERATIONS) Intangible Assets to Build Capabilities (HC, SC, OC) 48 © James G. Clawson The Balanced Scorecard Framework FINANCIAL PERSPECTIVE Long Term Shareholder Value Productivity Revenue Growth CUSTOMER PERSPECTIVE Relationship Product/Service Attributes Function Time Quality Price Partnership Image Brand INTERNAL PROCESS PERSPECTIVE Manage Operations Manage Innovation Manage Customers Manage Regulatory & Social Processes LEARNING AND GROWTH PERSPECTIVE Human Capital 49 © James G. Clawson + Social Capital + Organization and IT Capital Adapted from Strategy Maps, Kaplan & Norton, HBSP, 2004 Problems: The Source of Change “…the starting point of any effective change effort is a clearly defined business problem.” Beer, Eisenstadt, Spector—Why change programs don’t produce change. HBR What problems do you SEE? What kind of problem is strong enough to motivate you to initiate change? 50 © James G. Clawson The Structure of Problems: Want-Got Gaps 1. Stakeholder 2.WANT 3. GOT Gap? 51 © James G. Clawson The Problem with Problem Solving: OSCILLATION Recognizing the problem leads to action to solve the problem Leads to less intensity of the problem Leads to less action to solve the problem Leads to the problem remaining False sense of security: you know just what you are supposed to do: find and solve problems. If you didn’t have problems, what would you think about? How would you spend your time? What drives the action is the intensity of the problem REACTIVE OSCILLATION. 52 © James G. Clawson Structural Conflict leads to Oscillation 53 TENSION RESOLUTION Hunger Eat Overweight Diet © James G. Clawson Oscillation drains energy Centralize Customer Organization Grow Acquire Diversify 54 © James G. Clawson Decentralize Geography Organization Contract Organic Sales Stick to Knitting “Problems” are Insolvable “All of the greatest and most important problems of life are fundamentally insoluble…they can never be solved, but only outgrown. This “out growth” proved on further investigation to require a new level of consciousness. One higher or wider interest appeared on the patient’s horizon, and through this broadening of his or her outlook, the insoluble problem lost its urgency. It was not solved logically in its own terms, but faded when confronted with a new and stronger life urge.” -- Carl Jung 55 © James G. Clawson The Path of Least Resistance Robert Fritz 1984, 1989 Random House 56 © James G. Clawson Fritz’s Alternative: Orient to the Creative Process 1. Describe accurately where you are (Collins’ “confront the brutal facts”) 2. Make a vision of what you want to create with your life/work. Make sure it’s something you want so bad, you are magnetically attracted to it. 3. 4. What do Formally choose the result you want. you want to create? Move on (if you really want it, you will naturally ‘flow’ in that direction.) 57 © James G. Clawson Elements in Effective Leadership: Selling Your Story ENVIRONMENT SELF RESULTS OTHERS TASK ORGANIZATION 58 © James G. Clawson Balanced Scorecard Financial Customer Operations Learning & growth Levels of BUY-IN 1. Passion (“What you ask is the #1 thing in my life.”) 2. Engagement (“I want to do what you ask.”) 3. Agreement (“I will do what you ask.”) 4. Compliance (“Okay” but where are the loopholes?) 5. Apathy (“I just don’t care.”) 6. Passive Resistance (“Oops.”) 7. Active Resistance (“No way in hell.”) 59 © James G. Clawson Levels of Influence 1. VISIBLE BEHAVIOR 2. CONSCIOUS THOUGHT 3. VABEs (Values Assumptions Beliefs and Expectations about the way the world is or should be) 60 © James G. Clawson Level One Techniques • Force • Intimidation • Coercion • Manipulation • Deceit • Incentives • Rewards • Punishments 61 © James G. Clawson “The more significant problem is precisely that the effects of rewards do last, but these effects are the opposite of what we were hoping to produce. What rewards do, and what they do with devastating effectiveness, is smother people’s enthusiasm for activities they might otherwise enjoy.” Alfie Kohn, Punished by Rewards, p. 74 62 © James G. Clawson Level Two Techniques • Data • Logic • Analysis • Reason • Evidence • Charts • Printouts • Quoting gurus 63 © James G. Clawson Level Three Techniques • Vision • Inclusion • Stories/Anecdotes • Music • Honesty • Authenticity • Caring 64 © James G. Clawson Leadership Technique and Consequence BUY-IN 1. Level One Techniques: Pay, rewards, punishments, threats, coercion, intimidation 2. Level Two Techniques: logic, data, evidence, reason, statistics, charts, analysis 3. Level Three Techniques: vision, purpose, values, stories, music, symbols, strategy, TPOV 65 © James G. Clawson 1. Passion 2. Engagement 3. Agreement 4. Compliance 5. Apathy 6. Passive Resistance 7. Active Resistance The Language of Leadership: tiny tips Replace your “buts” with “ands.” Speak in the first, not second, person. Don’t disguise your opinions as questions. (creates defensiveness) Make invitations rather than giving orders. (allows choice) Pay attention to the “buy-in” level below the surface. … 66 © James G. Clawson Elements in Effective Leadership: Designing Effective Organizations ENVIRONMENT SELF RESULTS OTHERS TASK ORGANIZATION 67 © James G. Clawson Balanced Scorecard Financial Customer Operations Learning & Growth Leaders have only an Indirect Influence on Outcomes Background Factors 68 Leadership VABEs © James G. Clawson CULTURE Design DESIGN + DECISIONS People Results Financials Customers Efficiency Learning CULTURE EATS STRATEGY FOR BREAKFAST! 69 © James G. Clawson Elements in Effective Leadership: Leading Change ENVIRONMENT SELF RESULTS OTHERS TASK ORGANIZATION Balanced Scorecard Financial Customer Operations Learning & Growth LEADING CHANGE 70 © James G. Clawson We live in a world of dramatic and on-going change… 71 © James G. Clawson “Ten short years.... the one thing that we have done consistently is to change .... It may seem easier for our life to remain constant, but change, really, is the only constant. We cannot stop it and we cannot escape it. We can let it destroy us or we can embrace it. We must embrace it.” Michael Eisner Disney 1994 Annual Report 72 © James G. Clawson Population Growth World Population in Billions 6.0 Bio & Energy Revolution? 5.5 5.0 Medical & Information Revolution Industrial Revolution 4.5 4.0 3.5 3.0 2.5 The Plague 2.0 1.5 1.0 0.5 2000 500 400 300 200 100 A.D. 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 1950 Source: US Census Bureau, Population Reference Bureau, adapted from Breathing Space, by Jeff Davidson 73 © James G. Clawson What will it take to deal with / lead in turbulent times like these? 74 © James G. Clawson Can you change anything in the world “out there” without changing yourself first? Society Organization Team Self 75 © James G. Clawson Change and Learning In a world of change, learners will inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists. Eric Hoffer, Ordeal of Change 76 © James G. Clawson Models of Change 77 © James G. Clawson (L3L 4e, Ch. 24, p. 339) Kurt Lewin Michael Beer John Kotter Tim Gallwey MIT Model Elizabeth Kubler-Ross James O. Prochaska Peter Senge Jim Clawson (+16) Kurt Lewin Unfreeze Retrain Refreeze RETRAIN 78 © James G. Clawson Beer’s Leading Change Cp = D x M x P > Cp = Probability of Change D = Dissatisfaction with Status Quo M = Clear Model or Vision of the Future P = Clear Process for Managing the Change C = Cost of Making the Change C from Leading Change, Michael Beer, HCS 79 © James G. Clawson Kotter’s 8 Errors in Leading Change Allowing complacency Failing to create a guiding coalition Underestimating the power of vision Under-communicating the vision by 10, 100, or 1000 Allowing Obstacles to block the vision Failing to create short-term wins Declaring victory too soon Neglecting to anchor changes in culture 80 © James G. Clawson From Leading Change, John Kotter, HBS Press, 1996. Kotter’s Eight Stage Process for Creating Transformation Establish a sense of urgency Create a guiding coalition Develop strong vision and strategy Over communicate the vision and strategy Redesign to encourage broad-based action Generate short-term wins Consolidate gains in redesign and HR Anchor changes in the culture 81 © James G. Clawson Adapted from Leading Change, John Kotter, HBS Press, 1996 Inner Game of Change Self 1 (Shoulds) and Self 2 (Inner Self) Select the right measures Focus attention and see what happens Listen to Self 2 Adapted from Tim Gallwey, Inner Game of Work 82 © James G. Clawson Nevis’ MIT Phases of Change Complacency/ Turbulence / Resistance / Small Wins / Consolidation / New Baseline 83 © James G. Clawson Susan Campbell’s Stages of Change Feeling Unsettled: Something isn’t right. Denial: It’s not that bad. Facing the Present: I see things as they are. Letting Go: The past isn’t working; the future is unclear. Envisioning: I know what I want. Exploring new Options: Maybe I can do it. Committing to Action: I can do it. Integrating the Change: I am doing it. 84 Adapted from From Chaos to Confidence, Susan Campbell, Simon & Schuster, New York, 1995 © James G. Clawson Change as Dying a Little Death Elizabeth Kuebler-Ross Emotional Pendulum of Change Disconfirming Data DENIAL 85 © James G. Clawson Denying the Message Denying the Messenger DENIAL Denying One’s Ability to Do Anything 86 © James G. Clawson Denying the Relevance of the Message Emotional Pendulum of Change Disconfirming Data DENIAL ANGER BARGAINING DESPAIR EXPERIMENTATION HOPE INTEGRATION 87 © James G. Clawson Prochaska’s Spiral of Change Stage Pre-Contemplation Unaware of the problem much less the solution Contemplation I want to stop feeling/doing this. Preparation Action Maintenance Termination 88 Key Activity © James G. Clawson I will do something very soon. I am doing something about this. Careful attention to maintaining the change and not recycling Temptation and threat have disappeared. Prochaska’s Spiral of Change Recycling is likely for as many as 85%. 6. Termination 5. MAINTENANCE 4. ACTION 3. Preparation 2. Contemplation 1. PreContemplation 89 © James G. Clawson Senge’s Model of Change Most Change Agents Stay BELOW the Line FUTURE What do we need to do tomorrow? Who do we need to partner with? INTERNAL EXTERNAL Do Alone Need to collaborate What are we doing today? Who do we partner with today? TODAY 90 © James G. Clawson The Necessary Revolution, Peter Senge, 2008 Senge’s Model of Change Not from the top, from the 91 bottom or middle, anywhere Organize in groups and teams not individuals Only need a few, e.g. 10 out of 8 Start people thinking, give them new insights Find stories to tell about value creation that we can’t escape Spend three years “hanging out” talking with people © James G. Clawson Network more, meet more people who are knowledgeable Spread it slowly (like zoysia grass) Listen and hear it from your peers Success depends on the richness of your networks Create visual images for people (they stick) Be consistent Remember executives can screw it up Problem Leadership LEADERSHIP ACTIVITY Questions Answers Problem Solving Old New Problem Finding New Old Problem Creating New New Adapted from Pathfinding by Harold Leavitt, 1995 92 © James G. Clawson CLAWSON’S GENERAL CHANGE PROCESS (4e, p 344) L NEW BASELINE CONFIRMATION L L L EXPERIMENT NEW DATA SEARCH FOR ALTERNATIVES L DISCONFIRMING L L ENTHUSIASM ENGAGEMENT LEARNING L CURRENT COMFORT ZONE 93 HURT or PAIN L ENCOUNTER NEW DATA © James G. Clawson DisconCONFIRMING firming DATA Data L DENY DISTORT DISCOUNT IGNORE BASELINE BEHAVIOR Clawson Sequentially Help people get out of their comfort zones (habits) Be willing to deliver disconfirming data Identify and collaborate with like-minded groups Be willing to help people through pain and denial Help people identify alternative approaches (creativity, innovation) Help people plan their experiments (active coaching) Help interpret results data from experiments (encouragement) Reward and reinforce successes (encouragement) Be relentless in reinforcement Behave consistently all the time 94 (c) James G Clawson Is it ETHICAL to muck around at Level Three? 95 © James G. Clawson The Ethical Foundation of Extraordinary Leadership Subpar 1’s Ordinary Extraordinary Good Enough 2’s 3’s 4’s How do you shift this distribution? 96 © James G. Clawson 5’s Traditional Leadership Technique Planning Organizing Motivating Controlling Goal Setting Performance Reviews Reward Systems and Incentives … 97 © James G. Clawson The Ethical Foundation of Extraordinary Leadership Subpar Ordinary Good Enough 1’s 2’s 0 0 0 3’s © James G. Clawson 4’s Truth Telling Promise Keeping Fairness 0 Respect for the 98 Extraordinary 5’s 10 10 Olympic 10 Gold Individual 10 Medal Rich Teerlink, CEO Harley Davidson Six Steps to Effective Leadership 1. 2. 3. 4. 5. 6. 99 Clarifying your center Clarifying what's possible Clarifying what others can contribute Supporting others so they can contribute Being relentless Measuring and celebrating progress © James G. Clawson Elements in Effective Leadership ENVIRONMENT SELF RESULTS OTHERS TASK ORGANIZATION 100 © James G. Clawson Balanced Scorecard Financial Customer Operations Learning & growth Power is the ability to get others to do what you want them to do. (outside-in) 101 © James G. Clawson Leadership 1. The ability to influence others, and 2. The willingness to influence others 3. So that they respond voluntarily. (inside-out) 102 © James G. Clawson LEADERSHIP POINT OF VIEW 1. Do you SEE what needs to be done? 2. Do you UNDERSTAND the situation thoroughly? 3. Do you have the COURAGE TO ACT to make it better? 103 © James G. Clawson Leadership is, as you know, not a position but a job. It’s hard and exciting and good work. It’s also a serious meddling in other people’s lives. One examines leadership beginning not with techniques but rather with premises, not with tools but with beliefs, and not with systems but with understandings. This I truly believe. Max DePree, Leadership Jazz, p. 7 104 © James G. Clawson You are always teaching. Every encounter between a superior and a subordinate involves learning of some kind for the subordinate. (It should involve learning for the superior, too, but that is another matter.) When the boss gives an order, asks for a job to be done, reprimands, praises, conducts an appraisal interview, deals with a mistake, holds a staff meeting, works with his subordinates in solving a problem, gives a salary increase, discusses a possible promotion, or takes any other action with subordinates, he is teaching them something. The attitudes, the habits, the expectations of the subordinate will be either reinforced or modified to some degree as a result of every encounter with the boss. . .The day-by-day experience of the job is so much more powerful that it tends to overshadow what the individual may learn in other settings. 105 © James G. Clawson The Human Side of Enterprise pp. 199-200 Will you (not can you) change? Will you ever become anything more than a vessel transmitting the memes and genes of previous generations on to the next? Will you rise above (transcend) your legacies and lead others to do the same? If not, … 106 © James G. Clawson Importance of Learning The only real source of competitive advantage may be the capacity to learn. Arie de Geus, The Living Company 107 (c) James G. Clawson AN INVITATION / CHALLENGE 108 © James G. Clawson 109 © James Clawson, 2009