The Five Dysfunctions of a Team Jim Alampi September 19, 2015September 19, 2015September 19, 2015

Copyright © 2009 Alampi & Associates, LLC2 Return on Capital Invested “In a study of 3,000 companies, researchers at the University of Pennsylvania found that spending 10% of revenue on capital improvements boosts productivity by 3.9%, but a similar investment in developing human capital increases productivity by 8.5% - more than twice as much.” Fast Company August 2003 “In a study of 3,000 companies, researchers at the University of Pennsylvania found that spending 10% of revenue on capital improvements boosts productivity by 3.9%, but a similar investment in developing human capital increases productivity by 8.5% - more than twice as much.” Fast Company August 2003

Copyright © 2009 Alampi & Associates, LLC3 Agenda Level 5 Leadership as a Prerequisite for a Team The Value of Values Model Smart and Healthy Executive Leadership Teams The Four Disciplines of Executive Leadership Teams The Five Dysfunctions Model Team Assessment and Report Tools Stop Doing/Keep Doing Exercise

Copyright © 2009 Alampi & Associates, LLC 4 Leadership Teams Start with Understanding Level Five Leadership

Copyright © 2009 Alampi & Associates, LLC5 Level 5 Leadership What is it?What is it? Is it possible?Is it possible? Is it fair?Is it fair? Are you up to the task?Are you up to the task? “You can accomplish anything in life, provided that you do not mind who gets the credit” Harry S. Truman

Copyright © 2009 Alampi & Associates, LLC6 Level 5 Leaders Source: Good to Great, Jim Collins Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company. It’s not that level 5 leaders have no ego or self interest. Indeed, they are incredibly ambitious – but their ambition is first and foremost for the institution, not themselves.

Copyright © 2009 Alampi & Associates, LLC7 Level 5 Hierarchy Level 5 Executive - Builds enduring greatness through a paradoxical blend of personal humility and professional will. Effective Leader - Catalyzes commitment to and vigorous pursuit of a clear and compelling vision stimulating higher performance. Competent Manager - Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Contributing Team Member - Contributes individual capabilities to the achievement of group objectives and works effectively with others. Highly Capable Individual - Makes productive contributions through talent, knowledge, skills and good work habits. Level 5 Level 4 Level 3 Level 2 Level 1

Unwavering resolve to do what must be doneUnwavering resolve to do what must be done Every Good to Great company had a Level 5 leader during the pivotal transition yearsEvery Good to Great company had a Level 5 leader during the pivotal transition years They are cut from a different clothThey are cut from a different cloth Jim Collins was not looking for this, he discovered itJim Collins was not looking for this, he discovered it George Cain of Abbott Labs fired family membersGeorge Cain of Abbott Labs fired family members Level 5 Leaders Copyright © 2009 Alampi & Associates, LLC 8

9 Darwin Smith of Kimberly Clark, a stodgy old paper company, decided to “Sell the mills” and become a world class consumer paper goods businessDarwin Smith of Kimberly Clark, a stodgy old paper company, decided to “Sell the mills” and become a world class consumer paper goods business Humility + Will = Level 5Humility + Will = Level 5 It’s about the cause, the work & the mission -not about the individualIt’s about the cause, the work & the mission -not about the individual Level 5 Leaders

Copyright © 2009 Alampi & Associates, LLC10 Level 5 Leaders (It’s Easier to Tell Who Isn’t) Who first, then what –The genius with 1,000 helpers David Packard and Bill Hewlett – “A” Players Charisma is a disease –Strong standards –Not strong personality We keep promoting the opposite People – bus – seats

Copyright © 2009 Alampi & Associates, LLC11 How do You Become Level 5? It’s an iterative process Fork in the road (1 you, 2 the cause) What would a Level 5 do? Track your question-to-statement ratio Be the last to speak Make sure everyone has answered your question Level 5 is a series of Level 5 decisions…

Copyright © 2009 Alampi & Associates, LLC12 Level 5? Look for one opportunity where you are confronted with a decision, where there is a fork in the road, and you have to decide about you or the greater good – take the Level 5 road…

Healthy executive teams do not require every member to be a Level 5 leader. But the more each member understands what Level 5 is and undertakes the journey, the greater chance there is of a high-performance executive team. Copyright © 2009 Alampi & Associates, LLC13

Leadership Teams Start with Level Five Leaders Who Have the Right Values Copyright © 2009 Alampi & Associates, LLC14

Why Core Values? Guidelines to behavior “Moments of Truth” decision-making Hiring Copyright © 2009 Alampi & Associates, LLC15

Copyright © 2009 Alampi & Associates, LLC16 Values-based Hiring Matrix Values Alignment Experience & Skills H HL

Why Core Values? Guidelines to behavior Moments of Truth decision-making Hiring Annual performance appraisal Copyright © 2009 Alampi & Associates, LLC17

Four Types of Values Copyright © 2009 Alampi & Associates, LLC18

Copyright © 2009 Alampi & Associates, LLC19 The Values Model Aspirational Permission To Play Accidental CoreValues

Copyright © 2009 Alampi & Associates, LLC20 Leadership Teams Start with Leaders Who Understand Level Five, Have the Right Values and Focus on the Healthy Side of Their Companies

Copyright © 2009 Alampi & Associates, LLC21 Executive Leadership & Teams An organization needs to be both to be successful SmartSmartHealthyHealthy -Strategy -Marketing -Finance -Technology -Less Politics -Less Confusion -Higher Morale -Higher Productivity -Lower Turnover * Source: Patrick Lencioni, The Table Group, Inc.

22 * Source: The Four Obsessions of An Extraordinary Executive, Patrick Lencioni, The Table Group, Inc. Copyright © 2009 Alampi & Associates, LLC Leadership - The Four Disciplines 4: Reinforce Clarity Through Human Systems 3: Over- Communicate Organizational Clarity 2: Create Organizational Clarity 1: Build and Maintain a Cohesive Leadership Team

Copyright © 2009 Alampi & Associates, LLC 23 Teams

Copyright © 2009 Alampi & Associates, LLC24 Who Said You Have to Be a Team? No requirement to be a teamNo requirement to be a team It’s very hard workIt’s very hard work Natural state is to be dysfunctionalNatural state is to be dysfunctional True teams make willing sacrifices to one another to achieve common goals that lead to joint rewardsTrue teams make willing sacrifices to one another to achieve common goals that lead to joint rewards Teams confront behavioral issues readilyTeams confront behavioral issues readily Teams engage in positive conflict to get the best solution and gain commitmentTeams engage in positive conflict to get the best solution and gain commitment Teams keep their egos in checkTeams keep their egos in check Teams put the success of the organization above any individual’sTeams put the success of the organization above any individual’s

Copyright © 2009 Alampi & Associates, LLC 25 The Five Dysfunctions

Copyright © 2009 Alampi & Associates, LLC26 Five Dysfunctions Overview Fear of Conflict Absence of Trust Lack of Commitment Avoidance of Accountability Inattention to Results Status and Ego Low Standards Ambiguity Artificial Harmony Invulnerability Evidence

Copyright © 2009 Alampi & Associates, LLC27 The Online Assessment

Copyright © 2009 Alampi & Associates, LLC28 Team Assessment Source:

Team Effectiveness Exercise Name Do More Of/Keep Doing Needs to Improve/Stop Doing Feedback from my peers What does each of your colleagues do well (keep doing) and how could they make improvements for the team to be more productive. Copyright © 2009 Alampi & Associates, LLC29

Copyright © 2009 Alampi & Associates, LLC30 Summary Level 5 Leadership as a Prerequisite for a Team The Value of Values Model Smart and Healthy Executive Leadership Teams The Four Disciplines of Executive Leadership Teams The Five Dysfunctions Model Team Assessment and Report Tools Stop Doing/Keep Doing Exercise

Sources The Four Obsessions of an Extraordinary Executive, Patrick Lencioni The Five Dysfunctions of a Team, Patrick Lencioni Good to Great, Jim Collins Built to Last, Jim Collins Copyright © 2009 Alampi & Associates, LLC31

Contact Information Copyright © 2009 Alampi & Associates, LLC32 Alampi & Associates, LLC office fax cell