1

People-Centric LeadershipGood Intentions Are Not Enough

Radiant Systems

June 20, 2007

Edward D. HessProfessor and Batten Executive-in-ResidenceDarden Graduate School of BusinessUniversity of Virginia

2

Objectives:

Share with you converging research on:

High performance organizations (HPO) High performance leadership Manager best practices

Begin thinking about what effective leadershipmeans.

Begin drilling down to the mission criticalbehaviors necessary for effective leadership.

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

Behavior

4

Vignettes

Jimmy Blanchard storyBill Turner storyDr. DeBakey story

My Story: Age 331987 – age 401989 – age 421994 – age 47

Leadership is about people: the emotional ‘gumbo” of life

5

High Performance Orgs

5 different lines of research all come to the sameconclusion:

1. HBS – Heskett et al – The Service Value Chain2. Stanford Business School – O’Reilly & Pfeffer

– The Hidden Value3. University of Michigan & Case Western –

Positive Organizational Scholarship4. Emory Center – Leading with Values and High

Growth Companies5. Gallup – Manager Best Practices

6

Clear and Compelling

$$$

Employees Customers

7

NOT

Customers

$$$Employees

$$$

$$$

Customers

Customers

Employees

Employees

8

1. Gallup – Employee satisfaction

2. Michigan – Energized employees

3. Emory – Employee empowerment

All are trying to describe the same thing

What Does It Mean?

9

What Does Employee Engagement Mean?

1.

2.

3.

4.

5.

10

What Behaviors Evidence High Employee Engagement?

1. 2. 3. 4. 5. 6. 7. 8.

11

Results Of Having Engaged Employees Are Clear

1. Happier employees

2. More productivity

3. More intensity and focus

4. Lower turnover

5. Satisfied customers

6. You make more $$$ (Sysco, Best Buy)

12

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?

13

#1: Most Critical: Most Important Factor

Leaders

OR

Leaders

OR

Leaders

14

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 ?

15

Let’s Step Back

1. How many direct reports do you have?

2. Well, you can only impact so many people?

3. How does this stuff go from the CEO all the way to the tech support rep?

16

The “Domino Effect” of Leadership

Leadership cascades down an organization

People think it is okay to treat their peoplelike they are treated

People imitate, role model acceptablebehaviors

17

Leaders Impact Employees

What do employees want from leaders?

1st

Break-out

Teams: 1, 3, 5, 7 What do your employees need or want from you?

15 minutes Teams: 2, 4, 6, 8 What makes you feel good about your job?

18

Team Reports

1. What do your employees need or want from you?

2. What makes you feel good about your job?

3. Compare the lists

19

What Do Employees Want?

1. 2. 3. 4. 5. 6.

2nd

Break-out

Teams, 1, 3, 5, 7 What behaviors make you feel like 1-3? Destructive behaviors?

15 minutes Teams 2, 4, 6, 8 What behaviors make you feel like 4-6? Destructive behaviors?

20

Employee Goals

Enhancing Behaviors

(Enablers)

Destructive Behaviors

(Barriers)

Team reports and discussion

21

10 minute break

22

Welcome Back…

I took a break after the last session for a

purpose. I wanted you to reflect on our

discussion and see if there were any

“AHA’s”

Were there?

23

Some people feel “sick”…

They think:

Wow – I had no idea how many behaviors I exhibitdaily that send the wrong message….

I realize now that my behavior does not correlatewith my beliefs

This is NOT how I want to come across

Reactions

24

Should Anyone Follow You?

Why?

25

Common Reasons

You are smarter You are better educated You have more experience You have positional power You can coerce them Fear of losing job People want to be led

26

How did you get to a leadership position?

Why you want(ed) to be a leader?

Think about…

27

Most people want to lead because of the:

5 PsPowerPrestigePayPromotionsPerks

Leaders

28

Your underlying philosophy, attitudes and

beliefs about leadership frame and colors

your behavior. From this perspective

emerges a fundamental and pivotal choice…

Leadership Perspective

29

Leadership Perspective

Is it all about YOU?

OR

Is it all about THEM?

30

If it truly is all about YOU,

You will want to learn how to be effective to

get results yourself

OR

If it truly is about THEM, you will want to

learn to be an effective people leader to

inspire others to get results

Leadership Perspective

31

Leadership Perspective

You/result centered OR People Centric

Hierarchical vs. Servant

Patriarchal vs. Values-based

Pragmatic vs. Authentic

Situational vs. Transformational

Behavioral vs. Stewardship

32

Leadership Principles

Straightforward and simple, really only 4:

Golden Rule Take care of your people Lead by example Do what’s right

33

Leadership Principles

Principles are Simple, Daily Execution is Hard

ConsistencyDisciplineThousands of little actsLeadership fishbowl

Expertise research

34

Leadership Principles

Communication happens through:

50% Body language

38% Tone

7% Words

Professor Jane Dutton Energizing Your Workplace

35

High Performance Organizations

Research says that leaders in HPO’s are: Jim Collins Level 5 types Humble, passionate operators Most grew up in one company 20+ years Can relate to, understand and care about line

employees Paranoid about complacency and arrogance Devalue elitism and executive perks Not necessarily charismatic nor visionary, nor MBAs Attribute success to others, luck, being in right

industry, right place at the right time.

36

Serendipity In Life and Leadership

Think of all the unplanned events that got you here.

Your success is because of many other people giving to you

When is it payback time? Outback, Best Buy stories

37

HPLs of HPOs

1. UPS 10. SAS

2. Best Buy 11. Walgreens

3. Tiffany 12. Harley Davidson

4. Synovus, TSYS 13. Chik-Fil-A

5. USMC 14. Starbucks

6. Horst Schulte & Ritz Carlton 15. Stryker

7. Southwest Air 16. P&G

8. Outback 17. San Antonio Spurs

9. SYSCO 18. American Eagle Outfitters

38

Humble – The Common Thread

Break-out

Teams, 1, 3, 5, 7 Define humble. What daily behaviors exhibit it?

15 minutes Teams 2, 4, 6, 8 Define arrogance (opposite)

What daily behaviors exhibit it?

39

Humble

Definitions:

Behaviors:

40

Arrogance

Definitions:

Behaviors:

41

Can we rank order humble behaviors?

And Arrogant behaviors?

Humble and Arrogance

42

What Have We Just Done?

Any insights or AHA’s?

Discuss work of Karl Weick

43

Wait – A Major Problem

The Leadership Paradox

44

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 dailykillers of

Effective Leadership

45

In Conclusion…

Effective Leaders

employees

What behaviors do we reward?What behaviors do we devalue?How do we change behavior?