1. PEOPLE-CENTRIC LEADERSHIP GOOD INTENTIONS ARE NOT ENOUGH Ed Hess Professor of Business Administration Batten Executive-in-Residence Hesse@darden.virginia.edu www.EDHLTD.com Darden Alumni Weekend April 27, 2012

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. 2

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 3 Behavior

4. CLEAR AND COMPELLING 4 $$$ EmployeesClients

5. 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? 5

6. #1: MOST CRITICAL: MOST IMPORTANT FACTOR Leaders OR Leaders OR Leaders 6

7. 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 ? 7

8. 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 8

9. LEADERS Most people want to lead because of the : 5 Ps Power Prestige Pay Promotions Perks 9

10. LEADERSHIP PERSPECTIVE Is it all about YOU? OR Is it all about THEM? 10

11. LEADERSHIP PRINCIPLES Straightforward and simple, really only 4:  Golden Rule  Take care of your people  Lead by example  Do what’s right 11

12. LEADERSHIP PRINCIPLES Principles are Simple, Daily Execution is Hard  Consistency  Discipline  Thousands of little acts  Leadership fishbowl Expertise research 12

13. LEADERSHIP PRINCIPLES Communication happens through: 50% Body language 38% Tone 7% Words 13 Professor Jane Dutton Energizing Your Workplace

14. HPLS OF HPOS 1.UPS9.SAS 2.Best Buy10.Walgreens 3.Tiffany & Company11.Room & Board 4.Whole Foods12.Levy Restaurants 5.Ritz Carlton13.Starbucks 6.Southwest Air14.Costco 7.Outback15.McKinsey 8.Sysco16.San Antonio Spurs 14

15. POSITIVE WORK ENVIRONMENTS 15 PWE’s lead to better performance, creativity, decision making, and cognitive processing PWE’s are characterized as being positively energizing not energy draining : statements 5 to 1; inquiry to advocacy 1 to 1 Cameron, Positive Leadership ( BK, 2008)

16. 16 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