Leading in Difficult Times Dick Heller John Harris Mike Neiss Chief Inspiration Officer Company Optimist Compassionate Capitalist tompeterscompany ! presents

Inventing The New World of Work Thought Leadership

The Leadership 50 Fast Company Magazine, March 2001

“ There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case, AOLTime Warner

“ If the rate of change inside the organization is not greater than the rate of change outside the organization, then the end is near.” Jack Welch

Forbes100 from 1917 to 1987: 39 companies still alive in ’87, only 18 are in ’87 F100 only GE & Kodak outperformed the market from ‘17 to ‘87 S&P 500 from 1957 to 1997: 74 still alive in ’97; 12 outperformed the market from 1957 to 1997 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

Poll Number One In my organization, the current environment is: 1. Turbulent 2. Agitated 3. Mildly Confused 4. Calm 5. Asleep 6. Dead

Uncertainty: We don’t know when things will get back to normal. Ambiguity: We no longer know what “normal” means.

Poll Number Two The primary reason for uncertainty in my organization is: 1. Lack of clear vision 2. External economic issues 3. The state of our industry 4. Talent issues 5. 9/11 and its aftermath 6. Generational workforce issues 7. Other

“ Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.” Clayton Christensen, The Innovator’s Dilemma

“If things seem under control, you’re just not going fast enough.” Mario Andretti

The Leadership50 Leading in Totally Screwed Up Times

7. Leaders LOVE the MESS! The Leadership 50

“Extraordinary events, positive or negative are temporary openings for breakthroughs in personal growth, organizational development and human progress. Breakthrough leaders seize these moments to explore a world of new possibilities for themselves, for their organizations and for society.” Wayne Baker, University of Michigan

Great Historical Leaders Susan B Anthony Winston Churchill Mahatma Gandhi Abraham Lincoln Florence Kelly Martin Luther King Nelson Mandela Rosa Parks Mother Teresa

Susan B Anthony Winston Churchill Mahatma Gandhi Abraham Lincoln Florence Kelly Martin Luther King Nelson Mandela Rosa Parks Mother Teresa Women’s rights World War II National Independence Civil War Child labor laws Civil rights Liberation movement Civil rights Needs of the poor Great Historical Leaders

“The first lesson we learned from our research is that people performed best when they are challenged.” Kouzes & Posner

The Five Practices of Leaders Challenging the Process Inspiring a Shared Vision Enabling Others to Act Modeling the Way Encouraging the Heart -----Kouzes and Posner, “The Leadership Challenge”

STUFF HAPPENS!!

High Stress, High Illness Consider change taxing Feel powerless View challenge as a threat Approach Stress Positively

High Stress, High Illness Low Illness Consider change interesting Feel they can influence the outcome of a situation View challenge as an opportunity for development Consider change taxing Feel powerless View challenge as a threat Approach Stress Positively

8. Leaders DO! The Leadership 50

COLIN POWELL’S RULE #13 Part I: "Use the formula P=40 to 70, in which P stands for the probability of success and the numbers indicate the percentage of information acquired.” Part II: "Once the information is in the 40 to 70 range, go with your gut." The Leadership 50

13. Leaders FOCUS! The Leadership 50

“To Don’t List”

Crisis as Stimulation It is the leaders task to create a sense of urgency….even without an emergency!

23A. Leaders Honor Mistakes & Create “Blame-free Cultures.” The Leadership 50

Sam’s Secret #1!

reveals it “Adversity doesn’t build character, it reveals it.” Randy Melville, quoting Pete Carill

How many reports do you have? 0Red 1-10Blue 10-20Green Over 20Purple

“Managers with the highest control scores have the lowest personal credibility.” Kouzes & Posner

“ Leadership want to “ Leadership is the art of mobilizing others to want to shared struggle for shared aspirations.” Kouzes & Posner

37. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! The Leadership 50

Ben Zander: “I am a … DISPENSER OF ENTHUSIASM!”

Managers are PROBABILITY THINKERS Leaders are POSSIBILITY THINKERS Kouzes and Posner

44. Leaders Have a GREAT STORY! The Leadership 50

“A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership

50. Leaders Know WHEN TO LEAVE! The Leadership 50

Leading in Difficult Times Dick Heller John Harris Mike Neiss