1. Leadership and the Evolution of Change National Society of Accountants San Diego, California August 14, 2009 Marc A. Silverman Strategic Initiatives Inc. www.sii-inc.net

2. Overview Introduction Introduction Some Classic Stories Some Classic Stories Ruling Assumptions of Human Behavior Ruling Assumptions of Human Behavior On the Road to Greatness or Not! On the Road to Greatness or Not! Are You One Brain Sided? Are You One Brain Sided? A Little Exercise A Little Exercise Closure Closure

3. Theory X and Theory Y Theory X Theory X People are lazy, stupid and stubborn People are lazy, stupid and stubborn They need motivating and structure They need motivating and structure Autocracy and “leave the thinking to us” Autocracy and “leave the thinking to us” Theory Y Theory Y People are blank slates or positive People are blank slates or positive People need Nurturing Environments People need Nurturing Environments Empowerment Rules and “please think” Empowerment Rules and “please think”

4. Primary Paradigms I and II Physical/Economic Physical/Economic Stomach oriented Stomach oriented Carrot - Stick Motivation Model Carrot - Stick Motivation Model Autocratic Autocratic Social/Emotional Social/Emotional Heart oriented Heart oriented Employees Emotions must be Respected\ Employees Emotions must be Respected\ Benevolent Autocratic Benevolent Autocratic

5. Primary Paradigms III and IV Psychological Psychological Mind oriented Mind oriented Employees like to contribute Employees like to contribute Motivation - Pursue individual creative talent Motivation - Pursue individual creative talent Principle - Centered Principle - Centered Vocation and Meaning Vocation and Meaning Motivation is Existential Motivation is Existential Motivation from Empowerment Motivation from Empowerment

6. Building the Spiral Know Thy Self Know Thy Self Identifying Your Strengths Identifying Your Strengths And Your Learning Needs And Your Learning Needs Know Thy Organization Know Thy Organization Strengths and Weaknesses Strengths and Weaknesses Know Thy Market Know Thy Market In the Present In the Present In the Future In the Future

7. Holistic Model Personal Level Built on Trustworthiness Personal Level Built on Trustworthiness Integrity,Emotional Intelligence, Abundance Integrity,Emotional Intelligence, Abundance Living from the Inside out Living from the Inside out Interpersonal Level Built on Trust Interpersonal Level Built on Trust Managerial Level Built on Empowerment Managerial Level Built on Empowerment Organizational Level Built on Alignment Organizational Level Built on Alignment

8. Characteristics of Great Leaders They are Continually Learning They are Continually Learning They are Service-Oriented They are Service-Oriented They Radiate Positive Energy They Radiate Positive Energy They Believe in Other People They Believe in Other People They Lead Balanced Lives They Lead Balanced Lives They See Life as an Adventure They See Life as an Adventure They are Synergistic They are Synergistic They Sharpen the Saw They Sharpen the Saw

9. What Takes Us Down the Wrong Path Appetites and Passions Appetites and Passions Key - Self Discipline and Self Denial Key - Self Discipline and Self Denial Pride and Pretensions Pride and Pretensions Live in Harmony with Core Values and Mission Live in Harmony with Core Values and Mission Social and Emotional Intelligence Social and Emotional Intelligence Aspirations and Ambitions Aspirations and Ambitions Serve Others Serve Others Pursue Noble Causes Pursue Noble Causes

10. Seven Deadly Sins Mahatma Gandhi Wealth Without Work Wealth Without Work Pleasure Without Conscience Pleasure Without Conscience Knowledge Without Character Knowledge Without Character Commerce Without Morality Commerce Without Morality Science Without Humanity Science Without Humanity Religion Without Sacrifice Religion Without Sacrifice Politics Without Principles Politics Without Principles

11. Choosing Leadership Paradigms Coercive Coercive Based on Fear Based on Fear Promotes Reactive Learner and Control Promotes Reactive Learner and Control Utility or Effective Leadership Utility or Effective Leadership Based on Fairness Based on Fairness Promotes Reactive Learner and Bargaining Promotes Reactive Learner and Bargaining 8th Habit or Great Leadership 8th Habit or Great Leadership Inspiring Greatness in Others Inspiring Greatness in Others Promotes Learning and Excellence Promotes Learning and Excellence

12. Characteristics of Great Leaders Choose Inner Source of Principles Choose Inner Source of Principles What Do We Center Our Lives On What Do We Center Our Lives On Seek Solitude and Nature Seek Solitude and Nature Sharpen the Saw Regularly Sharpen the Saw Regularly Serve Others Anonymously Serve Others Anonymously Maintain long-term intimate relationships Maintain long-term intimate relationships Able to Forgive Self and Others Able to Forgive Self and Others Pragmatic Problem-solver Pragmatic Problem-solver Respect Natural Laws Respect Natural Laws

13. Critical Leadership Functions Executing Executing Influencing Influencing Relationship Building Relationship Building Strategic Thinking Strategic Thinking Getting the Right People on the Bus and in the Right Seat Getting the Right People on the Bus and in the Right Seat

14. Teamwork - Keys Accountability Accountability Focus Focus Agility Agility Ability to Dialogue Ability to Dialogue Trust Trust

15. They Build Trust Skills Skills Communication Communication Planning/Organization Planning/Organization Synergistic Problem-solving Synergistic Problem-solving Character Character Integrity Integrity Emotional Intelligence Emotional Intelligence Abundance Mentality Abundance Mentality

16. Typical Organizational Malaise and Incongruities No Shared Vision, Values and Mission No Shared Vision, Values and Mission No Shared Strategic Path No Shared Strategic Path Poor Alignment Between Vision - Structure - Culture and Execution* Poor Alignment Between Vision - Structure - Culture and Execution* Management Style is Incongruent with Vision and Values Management Style is Incongruent with Vision and Values Behavior does not equal Words Behavior does not equal Words Poor or Incongruent Management Skills Poor or Incongruent Management Skills Low Trust Low Trust Low Emotional Bank Accounts Low Emotional Bank Accounts Closed Communication Closed Communication Poor Teamwork Poor Teamwork

17. FROM AGGRESSIVE MONOLOGUES TO COOPERATIVE DIALOGUES AND TEAM-WORK Monologue Persuade others of the rightness of your position Hammer your own points Dialogue To state your own view Empathic listening of the others Create a new shared solution Open to change Allow for change Maintain own position 100% Creating a New Shared Solution Empathic Listening Attentive Listening Selective Listening Pretending Listening Refusal to discuss

18. Characteristics of Greatness Holistic Holistic Ecological - Systemic Ecological - Systemic Developmental Developmental Proactive Proactive

19. Developing Cultures of Greatness For Most People this is a Paradigm Shift For Most People this is a Paradigm Shift Think Win - Win Think Win - Win Skills Skills Self Management Self Management Helpful Structures and Systems Helpful Structures and Systems Accountability Accountability

20. BUILDING TRUST AND MORALE IN BUSINESS Creative excitement Team Synergy Reasonable cooperation Power / Sharing Non Hostile Compliance Hostile Compliance Withdrawal + Blame 0------------------------------------------------------0 Morale & Trust Need for Power Decreasing Increasing

21. Win - Win Specify Desired results Specify Desired results Set Some Guidelines Set Some Guidelines Identify Available resources Identify Available resources Define Accountability (Benchmarks) Define Accountability (Benchmarks) Determine Consequences Determine Consequences Performance Appraisals and Critical Dialogues Performance Appraisals and Critical Dialogues

22. A Little Exercise Some Backward Thinking Some Backward Thinking Define Your Goals Define Your Goals Articulate Your Successes Articulate Your Successes What You Accomplished What You Accomplished The Experience of the Other The Experience of the Other Don’t Forget Don’t Forget Use the Best Parts of You Use the Best Parts of You Have Fun! Have Fun! Balance! Balance! Get the Help You Need! Get the Help You Need! Enjoy the Journey Enjoy the Journey