©Leadership Pathways, All rights reserved. The Heart of Leadership Keith Merron Leadership Pathways

© Leadership Pathways, All rights reserved. “Think on these things”

© Leadership Pathways, All rights reserved. The Leadership Crisis? Leadership is probably the most talked about subject in business, and one of the most researched. Almost every year there is a major story about the crisis of leadership We have faced this crisis for hundreds of years. Why? Why do we continually blame our political leaders for what ails us?

© Leadership Pathways, All rights reserved. Where Do You Look For Leadership? In others? In the people who hold positions of leadership? In your boss?

© Leadership Pathways, All rights reserved. What is the Heart of Leadership? Leadership is not a position Leadership is not an action Leadership is not a skill Leadership is an attitude--a place from which to act

© Leadership Pathways, All rights reserved. Two Leaders BobFred Big vision Independent agent Impeccably honest Manipulates others Cares about others Needs approval Accountable Blames others Sees big picture Acts moment to moment

© Leadership Pathways, All rights reserved. What is your stance in life? Do you hold yourself as a model for others? Are you committed to acting with integrity? Do you see yourself as a powerful force for change? Do you stretch the boundaries of what is possible? Do you care about others (deeply)?

© Leadership Pathways, All rights reserved. Major Study In a huge organization, climate of departments was measured Climate varied significantly from department to department Over 50% of the variation was a direct result of the leader’s style of leadership

© Leadership Pathways, All rights reserved. Think Back Go back in time 50 years What were some of the major challenges facing the university?

© Leadership Pathways, All rights reserved. Mile High Look at the History of Business Up until 1950s, organizations were seen as mechanistic –Taylorism –This worked in predictable 1920s study of Hawthorne began sea change –Regardless of physical changes in environment, productivity went up

© Leadership Pathways, All rights reserved. Mile High cont’d 1950s to 1970s, organizations seen as social - Spawned human relations movement - Main emphasis was on managing people -Introduced key concepts like MBO and participative leadership - Principle flaw: happiness leads to productivity

© Leadership Pathways, All rights reserved. Mile High cont’d 1970s-90s saw a major sea change

© Leadership Pathways, All rights reserved. Come to the Present What are the key challenges the university system faces today?

© Leadership Pathways, All rights reserved. Time Taken From Invention to Widespread Use Steam engine Automobile40-50 Vacuum tube25-30 Televisionabout 20 Transistorabout 15 Personal computerabout 7 InventionYears

© Leadership Pathways, All rights reserved. PERCENT YEAR Savery (1698) Watt (1770, 1796) Newcommon (1712) Cornish (1830, 1846) Triple expansion (1890) Parsons turbine (1910) High pressure Steam turbine (1950, 1955) Gas turbine? Fuel cell? MHD? Combustion Efficiency Source: Thirring, H., Energy for Men. Indiana University Press, Harper & Row, Torchbooks,

© Leadership Pathways, All rights reserved. PERCENT YEAR Mach I Trains Pony Express Autos External combustion engine Chemical rocket? Speed of Travel Reciprocating engine Missiles Gas turbines Nuclear rocket Interplanetary spacecraft Interstellar spacecraft

© Leadership Pathways, All rights reserved. MEOMORY YEAR 256 K- Technology Rate of Change/ Computer Memory Growth 4 M- 84 K- 16 K- 1 K- 1 M

© Leadership Pathways, All rights reserved. In 1970, the United States dominated more than 80% of the world market for automobiles. By 1992, this number was less than 40%. Today it is even less. -Donovan, 1993

© Leadership Pathways, All rights reserved. In 1970, the steel industry in the United States produced 70% of the steel in the world. Today, it produces less than 12%.

© Leadership Pathways, All rights reserved. The World Has Changed Access to information Uncertainty Globalization Enormous demand for knowledge workers Change happening at an ever escalating speed

© Leadership Pathways, All rights reserved. Conclusion The old rules no longer apply Logic and prediction are no longer key to success

© Leadership Pathways, All rights reserved. The Problem in Front of You How to attract and retain great people in face of huge opportunities How to manage and rise above the pressing challenges facing you

© Leadership Pathways, All rights reserved. Let’s make two assumptions: 1. “A leader is someone you choose to follow to a place you wouldn’t go by yourself.” Joel Barker 2. The purpose of a good leader is to create conditions where people achieve high quality results that meet the needs of the organization (and sustain such efforts over time). Keith Merron

© Leadership Pathways, All rights reserved. The Solution is You Promote a sense of identify Articulate a compelling vision Create an energizing culture

© Leadership Pathways, All rights reserved. Organizational Change Why is it important for an organization to change quickly? EVENTEVENT Negative consequences Positive consequences ANTICIPATERESPOND

© Leadership Pathways, All rights reserved. Leadership Point One r Leaders encourage change

© Leadership Pathways, All rights reserved. Focus of attention PresentFuture BREADTH of RESPONSIBILITY HIGH LO Followers

© Leadership Pathways, All rights reserved. Focus of attention PresentFuture BREADTH of RESPONSIBILITY HIGH LO Followers Leaders

© Leadership Pathways, All rights reserved. Leadership Point Two r Leaders encourage change r Leaders create the future

© Leadership Pathways, All rights reserved. Kotters & Hesketts’ Research 207 firms from 22 industries Measured cultural strength Economic performance between Interviewed 75 industry analysts In-depth analysis of firms that were: –Culturally strong and less effective –Culturally strong and more effective

© Leadership Pathways, All rights reserved. CULTURE STRENGTH AND MARKET VALUE GROWTH Annual Market Value Growth (percent), Weak Culture Strength 5 Strong Adapted from Kotter & Hesketh Corporate Culture and Performance

© Leadership Pathways, All rights reserved. Key Findings Most effective company’s have: –Strong cultures –Adaptable cultures –Appropriate cultures

© Leadership Pathways, All rights reserved. Collins and Porras: Built to Last Visionary Company Criteria –Premier in industry –Widely admired –Made an indelible imprint on the world in which we live –Generations of CEO’s –Multiple product (or service) life cycles –Founded before 1950

© Leadership Pathways, All rights reserved. The Companies in Collins & Porras’ Research Study VISIONARY COMPANY –3M –American Express –Boeing –Citicorp –Ford –General Electric –Hewlett-Packard –IBM –Johnson & Johnson –Marriott –Merck –Motorola –Nordstrom –Philip Morris –Procter & Gamble –Sony –Wal-Mart –Walt Disney COMPARISON COMPANY –Norton –Wells Fargo –McDonnell Douglas –Chase Manhattan –GM –Westinghouse –Texas Instruments –Burroughs –Bristol-Myers Squibb –Howard Johnson –Pfizer –Zenith –Melville –RJR Nabisco –Colgate –Kenwood –Ames –Columbia

© Leadership Pathways, All rights reserved. Chart 1.B Ratio of Cumulative Stock Returns to General Market VISIONARY COMPANIES COMPARISON COMPANIES General Market Built to Last ; Successful Habits of Visionary Companies James C. Collins, Jerry I. Porras 1994, Harper Collins

© Leadership Pathways, All rights reserved. Collins & Porras’ Findings Leaders are organizational builders Establish a core ideology (e.g., The HP Way) Preserve their core ideology while encouraging innovation and progress Set challenging goals for people to accomplish Build cultures that are strong, integrated, focused and consistent Keep trying to do things better; keep experimenting

© Leadership Pathways, All rights reserved. The Power of Culture Culture’s influence appears to be “more powerful than anything else,” including: –Strategy –Structure –Leadership –Financial analysis –Management systems

© Leadership Pathways, All rights reserved. Don’t Ignore the Culture 1993 study by McKinsey of 100 companies: 5 of 6 failed reengineering efforts due to cultural problems Deloitte-Touche study of 400 companies: similar findings

© Leadership Pathways, All rights reserved. Leadership Point Three r Leaders encourage change r Leaders create the future r Leaders create culture

© Leadership Pathways, All rights reserved. Let’s Make an Assumption The Purpose of any Business Organization: To add value by creating products and services that meet or exceed present, emerging, and future needs of customers

© Leadership Pathways, All rights reserved. Implications Efficiency is not the primary cause of success in business organizations Instead, success is determined by:

© Leadership Pathways, All rights reserved. Implications Speed to market Customer responsiveness

© Leadership Pathways, All rights reserved. This Requires that Organizations are: Focused Aligned Anticipative and responsive Brilliant in their execution of strategy

© Leadership Pathways, All rights reserved. Vision Leadership Team 1 Managing Change From the Inside Out

© Leadership Pathways, All rights reserved. Managing Change Vision Leadership Team 1 4 Organizational Competencies 3 Culture Type From the Inside Out

© Leadership Pathways, All rights reserved. Managing Change: From the Inside-Out Structure 5 Communication System 6 Critical Success Factors 7 Measures 8 3 Culture Type 4 Organizational Competencies 13 Benefits System 12 Training and Development 11 Compensation System 10 Performance Management System 9 Selection & Assessment Vision Leadership Team 1

© Leadership Pathways, All rights reserved. Leadership Point Four r Leaders encourage change r Leaders create the future r Leaders create culture r Leaders focus on the system

© Leadership Pathways, All rights reserved. Key Research on Organizations The cost of turnover of one professional in an organization is roughly $100,000 There is more turnover in organizations today than ever before

© Leadership Pathways, All rights reserved. Key Research on Organizations In most organizations, the most critical asset is the human capital of the organization. The organization that is able to retain its key knowledge workers has a significant competitive advantage in today’s marketplace

© Leadership Pathways, All rights reserved. Key Research on Leaders The most critical ingredient to successful leadership is the ability to build trust.* Trust requires the ability to be authentic. *sources:Korn/Ferry study, Bennis, Kouzes and Posner

© Leadership Pathways, All rights reserved. Leadership Point Five r Leaders encourage change r Leaders create the future r Leaders create culture r Leaders focus on the system r Leaders build trust

© Leadership Pathways, All rights reserved. Conscious Leadership Great leadership is a conscious act

© Leadership Pathways, All rights reserved. Conscious Leadership Visionary (charisma) articulates compelling vision demonstrates strong conviction takes risks sets clear direction demonstrates enthusiasm

© Leadership Pathways, All rights reserved. Conscious Leadership Your supervisor has left on a two- year journey There will be no replacement Person at the highest level you interact with says he/she needs you to handle it It is all up to you

© Leadership Pathways, All rights reserved. Conscious Leadership What do you stand for? What do you intend to create?

© Leadership Pathways, All rights reserved. Barriers to Visionary Leadership Feeling small Dependency Allowing fear to overcome you Playing it safe Self-criticism

© Leadership Pathways, All rights reserved. Conscious Leadership Accountable (large) makes conscious choices sees self as causal agent demonstrates a “can-do” attitude

© Leadership Pathways, All rights reserved. Conscious Leadership CIRC ME

© Leadership Pathways, All rights reserved. Conscious Leadership CIRC ME

© Leadership Pathways, All rights reserved. Conscious Leadership Systemic thinker (big picture) aims for win-win solutions takes the long term view sees how things connect with one another

© Leadership Pathways, All rights reserved. Conscious Leadership Authentic (inspires trust) communicates authentically reliable--does what one says tells the truth

© Leadership Pathways, All rights reserved. Conscious Leadership Connecting (cares deeply) listens with intent to understand responds flexibly to needs of others includes others in decisions encouraging