“Are You Leading You? The Impact of Leadership on Business” Dr Darryl Cross, PhD FAPS, FAIM, PCC Leadership Coach & Psychologist Aligning Minds Playford Partnership Networking Breakfast, 12 June, 2009

Stanford Research Institute reports that organisational success and profit is determined by 2 core aspects: 1. Job Knowledge & Technical Skills 2. Interpersonal & Communication Skills What percentage however, is attributable to Box 1 in comparison to Box 2? 12.5%87.5% Vs Did you know?

Emotional Intelligence “When I compared leaders who were linked to strong performance with average performers, 90% of the difference was attributable to emotional intelligence rather than technical skills.” [David Maister, The Australian Financial Review, July *Source: What Makes a Leader?, Daniel Goleman (author of Emotional Intelligence, Bantam 1995 and Working with Emotional Intelligence, Bantam 1998), Harvard Business Review, November-December 1998] “My entire education over-developed my IQ skills and nowhere along the line did anyone ever teach me social skills, interpersonal skills – more importantly, emotional skills – which are at the centre of developing trust.”

 Can a good company become great and if so, how? What factors takes it from good to great?  Looked for companies that that had cumulative stock returns at or below the general stock market for 15 years, punctuated by a transition point, with cumulative returns at least 3 times the market over the next 15 years Recent Developments in Leadership [Jim Collins "Level 5 Leadership", Harvard Business Review, 2001, Page 67-76]

1,435 companies From the Fortune 500 list From 1965 – 1995 Found only 11 companies

Level 5 Leadership The common theme? The key factor was the top executive. "The executives in the companies that went from good to great and sustained that performance for 15 years or more were all cut from the same cloth – one remarkably different from those which produced executives at the comparison companies in the study". The successful organisations all had a "Level 5" leader at the time of the transition.

LEVEL 5 LEVEL 4 LEVEL 3 LEVEL 2 LEVEL 1 Highly Capable Individual Makes productive contributions thro' talent, knowledge, skills & good work habits Contributing Team Member Competent Manager Effective Leader Level 5 Executive Contributes to the achievement of group objectives; works effectively with others in a group setting Organises people and resources toward the effective and efficient pursuit of pre- determined objectives Catalyses commitment to and vigorous pursuit of a clear and compelling vision: stimulates the group to high performance Builds enduring greatness thro' a paradoxical combination of humility plus professional will

Level 5 leaders are a study in duality Level 5 = Humility + Will Modest & Wilful Shy & Fearless Personal Humility & Professional Will For example: Abraham Lincoln – "a quiet, peaceful, shy figure" Nelson Mandella; Mother Teresa; Martin Luther King Level 5 Leadership

EGO Me Needing to win Needing to be right Needing to be superior Needing to have more or get more Needing to look good Needing to achieve Needing to have a reputation Needing to possess Self-importance Self-granditure Me I I I Mine "In more than 2/3s of the comparison companies, we noted the presence of a gargantuan ego that contributed to the demise or continued mediocrity of the company"

‘Corporate Athletes’ Corporate Coaches of Corporate Athletes

"When looking to enhance knowledge and ability, even the most elite and talented athletes need a coach, someone who will help them analyse their performance and set goals for what they want to achieve in the future, and direction in achieving those goals. Business is no different." (Rebecca Spicer, "The Coaching Drill”, Dynamic Business, July 2007)

“People don’t care what you know until they know that you care” The Final Word