1 People-Centric Leadership Good Intentions Are Not Enough Radiant Systems June 20, 2007 Edward D. Hess Professor and Batten Executive-in-Residence Darden Graduate School of Business University of Virginia

2 Objectives: Share with you converging research on:  High performance organizations (HPO)  High performance leadership  Manager best practices Begin thinking about what effective leadership means. Begin drilling down to the mission critical behaviors necessary for effective leadership.

3 The Real Challenge Leadership attitudes and beliefs Leader values Leadership principles Leadership philosophy Most people figure out what leadership is Most people fail to execute Translating theory into consistent daily behavior Behavior

4 Vignettes Jimmy Blanchard story Bill Turner story Dr. DeBakey story My Story: Age – age – age – age 47 Leadership is about people: the emotional ‘gumbo” of life

5 High Performance Orgs 5 different lines of research all come to the same conclusion: 1.HBS – Heskett et al – The Service Value Chain 2.Stanford Business School – O’Reilly & Pfeffer – The Hidden Value 3.University of Michigan & Case Western – Positive Organizational Scholarship 4.Emory Center – Leading with Values and High Growth Companies 5.Gallup – Manager Best Practices

6 Clear and Compelling $$$ EmployeesCustomers

7 NOT Customers $$$ Employees $$$ Customers Employees

8 1.Gallup – Employee satisfaction 2.Michigan – Energized employees 3.Emory – Employee empowerment All are trying to describe the same thing What Does It Mean?

9 What Does Employee Engagement Mean?

10 What Behaviors Evidence High Employee Engagement?

11 Results Of Having Engaged Employees Are Clear 1.Happier employees 2.More productivity 3.More intensity and focus 4.Lower turnover 5.Satisfied customers 6.You make more $$$ (Sysco, Best Buy)

12 How Do You Create Employee Engagement? 1.Is it your culture? 2.Is it having fun? 3.Is it $$? 4.Is it perks? 5.Is it hiring the right people? 6.Is it being a great place to work? 7.Is it charismatic leadership? 8.Is it having the right mission?

13 #1: Most Critical: Most Important Factor Leaders OR Leaders OR Leaders

14 Emotional Intelligence Research Case Western 50-70% of how employees perceive their job can be traced to 1 person = their boss Does my boss: –truly care about me ? –help me grow and advance? –give me feedback fairly and consistently ? –listen to my opinion ? –treat me as a person ?

15 Let’s Step Back 1.How many direct reports do you have? 2.Well, you can only impact so many people? 3.How does this stuff go from the CEO all the way to the tech support rep?

16 The “Domino Effect” of Leadership Leadership cascades down an organization People think it is okay to treat their people like they are treated People imitate, role model acceptable behaviors

17 Leaders Impact Employees What do employees want from leaders? 1st Break-out Teams: 1, 3, 5, 7What do your employees need or want from you? 15 minutesTeams: 2, 4, 6, 8What makes you feel good about your job?

18 Team Reports 1.What do your employees need or want from you? 2.What makes you feel good about your job? 3.Compare the lists

19 What Do Employees Want? nd Break-out Teams, 1, 3, 5, 7What behaviors make you feel like 1-3? Destructive behaviors? 15 minutesTeams 2, 4, 6, 8What behaviors make you feel like 4-6? Destructive behaviors?

20 Employee Goals Enhancing Behaviors (Enablers) Destructive Behaviors (Barriers) Team reports and discussion

21 10 minute break

22 Welcome Back… I took a break after the last session for a purpose. I wanted you to reflect on our discussion and see if there were any “AHA’s” Were there?

23 Some people feel “sick”… They think: Wow – I had no idea how many behaviors I exhibit daily that send the wrong message…. I realize now that my behavior does not correlate with my beliefs This is NOT how I want to come across Reactions

24 Should Anyone Follow You? Why?

25 Common Reasons  You are smarter  You are better educated  You have more experience  You have positional power  You can coerce them  Fear of losing job  People want to be led

26 How did you get to a leadership position? Why you want(ed) to be a leader? Think about…

27 Most people want to lead because of the: 5 Ps Power Prestige Pay Promotions Perks Leaders

28 Your underlying philosophy, attitudes and beliefs about leadership frame and colors your behavior. From this perspective emerges a fundamental and pivotal choice… Leadership Perspective

29 Leadership Perspective Is it all about YOU? OR Is it all about THEM?

30 If it truly is all about YOU, You will want to learn how to be effective to get results yourself OR If it truly is about THEM, you will want to learn to be an effective people leader to inspire others to get results Leadership Perspective

31 Leadership Perspective You/result centeredORPeople Centric Hierarchicalvs.Servant Patriarchalvs.Values-based Pragmaticvs.Authentic Situationalvs.Transformational Behavioralvs.Stewardship

32 Leadership Principles Straightforward and simple, really only 4:  Golden Rule  Take care of your people  Lead by example  Do what’s right

33 Leadership Principles Principles are Simple, Daily Execution is Hard  Consistency  Discipline  Thousands of little acts  Leadership fishbowl Expertise research

34 Leadership Principles Communication happens through: 50% Body language 38% Tone 7% Words Professor Jane Dutton Energizing Your Workplace

35 High Performance Organizations Research says that leaders in HPO’s are:  Jim Collins Level 5 types  Humble, passionate operators  Most grew up in one company 20+ years  Can relate to, understand and care about line employees  Paranoid about complacency and arrogance  Devalue elitism and executive perks  Not necessarily charismatic nor visionary, nor MBAs  Attribute success to others, luck, being in right industry, right place at the right time.

36 Serendipity In Life and Leadership  Think of all the unplanned events that got you here.  Your success is because of many other people giving to you  When is it payback time? Outback, Best Buy stories

37 HPLs of HPOs 1.UPS10.SAS 2.Best Buy11.Walgreens 3.Tiffany12.Harley Davidson 4.Synovus, TSYS13.Chik-Fil-A 5.USMC14.Starbucks 6. Horst Schulte & Ritz Carlton 15.Stryker 7.Southwest Air16.P&G 8.Outback17.San Antonio Spurs 9.SYSCO18. American Eagle Outfitters

38 Humble – The Common Thread Break-out Teams, 1, 3, 5, 7Define humble. What daily behaviors exhibit it? 15 minutesTeams 2, 4, 6, 8Define arrogance (opposite) What daily behaviors exhibit it?

39 Humble Definitions: Behaviors:

40 Arrogance Definitions: Behaviors:

41 Can we rank order humble behaviors? And Arrogant behaviors? Humble and Arrogance

42 What Have We Just Done? Any insights or AHA’s? Discuss work of Karl Weick

43 Wait – A Major Problem The Leadership Paradox

44 Effective Leadership Execution Five Steps Right Leadership Attitudes and Beliefs 4 Fundamental Leadership Principles Leader’s Self-management tools Leadership Skills How to Lead Fight the daily killers of Effective Leadership

45 In Conclusion… Effective Leaders employees What behaviors do we reward? What behaviors do we devalue? How do we change behavior?