Download - New Criteria For Effective Leadership
![Page 1: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/1.jpg)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
The Identity Effect –
Shape a better company and a better you by marshaling the 8 building blocks of leadership
![Page 2: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/2.jpg)
The story in brief
Confidential Information © 2008 The Identity Circle.
All rights Reserved
I The Logic
II The Roadmap
III The Science IV The Opportunity
![Page 3: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/3.jpg)
I The Logic (is radical)
![Page 4: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/4.jpg)
“Problems cannot be solved at the same level of awareness that created them.” Albert Einstein
![Page 5: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/5.jpg)
5
The assumption
Humans and organizations are fundamentally different “beings” who have different needs that must be met in different ways in order for them to succeed.
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 6: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/6.jpg)
6
A long and successful history of divide-and-conquer
• Frederick Taylor – the scientific method
• Time-managed, assembly line efficiency
• Henry Ford: “All I want is men’s hands”
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 7: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/7.jpg)
7
The (radical) fact
When it comes to understandingthe deepest needs of organizationsand individuals, each is a mirror image of the other…
…exactly what is that need?
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 8: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/8.jpg)
8
The need to create value and be rewarded for it
in return …
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 9: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/9.jpg)
9
And what traits must both “beings” – the human being and the corporate being – possess in order to satisfy this essential need? …
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 10: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/10.jpg)
10
8 Traits: The Building Blocks of Identity
• Autonomy
• Differentiation
• Change
• Stewardship
• Purpose
• Alignment
• Brand
• Sustainability
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 11: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/11.jpg)
11
The source – The 8 Laws of Identity
The Law of Being (Autonomy)
The Law of Individuality (Differentiation)
The Law of Constancy (Change)
The Law of Will (Stewardship)
The Law of Possibility (Purpose)
The Law of Relationship (Alignment)
The Law of Comprehension (Brand)
The Law of the Cycle (Sustainability)
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 12: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/12.jpg)
12
If organizations and individuals have the same fundamental need …
… then, they should be led in the same fundamental way.
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 13: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/13.jpg)
13
And, so, why not?
• Unexamined assumptions
• Lack of framework
• Few tools
• Inability to measure
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 14: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/14.jpg)
II The Roadmap (unfolds)
![Page 15: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/15.jpg)
15
Dow’s growth challenge –1999 • $18 billion+ sales • For years, only GDP growth (3 – 4%)
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 16: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/16.jpg)
16
1. Autonomy The Law of Being One’s ability to live depends first upon defining one’s self as separate from all others. Self: Strip away the labels Organization: Forget the competition (for now)
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 17: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/17.jpg)
17
Autonomy for Dow… “Forget”… • BASF• DuPont• Rohm & Haas
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 18: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/18.jpg)
18
2. Differentiation The Law of Individuality One’s natural capacities invariably fuse into a discernible identity that makes one unique
Self: Unearth what you love Organization: Clarify unique capacities, not just strengths
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 19: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/19.jpg)
19
Differentiation for Dow…
• A genius for “life-changing” customer relationships
• A passion for scale
• A bias toward the essentials of life
• A talent for “whole system” thinking and action
• An obsession with improvement
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 20: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/20.jpg)
20
3. Change The Law of Constancy Identity is fixed, transcending time and place, while its manifestations are constantly changing. Self: Make the connections that explain past events and foreshadow your future Organization: Identify patterns of value creation over time
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 21: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/21.jpg)
21
Change for Dow…Dow has flirted with its societal impact since its inception:
Food Calcium sulfide (for fruit trees); agchem business, 1908Improved acetic anhydride yields Saran, 1928-45
Health and MedicineAcetylsalicylic acid (aspirin), 1916Nicorette developed (help quit smoking), 1983
Transportation Butadiene, isoprene (rubber substitutes – tires), 1914
NASA’s Apollo 8 protected during reentry by Dow epoxy resin heat shield, 1968
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 22: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/22.jpg)
22
4. Stewardship The Law of Will Every being is compelled to create value in accordance with their identity. Self: Commit to the path revealed in what you’velearned so far Organization: Trust your instincts; stay the course
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 23: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/23.jpg)
23
Stewardship for Dow… “We’re struggling to grow…
We need a north star – to know what we do beyond making resin pellets, styrene and the like. If we have an identity, we need to know what it is and what it may tell us about our future.”
- Bill Stavropoulos, former Dow CEO
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 24: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/24.jpg)
24
5. Purpose The Law of Possibility Identity foreshadows potential. Self: Follow the signs of joy.
Organization: Clarify your value-creating potential.
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 25: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/25.jpg)
25
Purpose for Dow…
To constantly improve what is essential to human progress by mastering science
and technology
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 26: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/26.jpg)
26
6. Alignment The Law of Relationship People and organizations are inherently relational, and those relationships are only as strong as the natural alignment between the identities of the participants. Self: Take stock of who matters and why Organization: Connect with people and companies who will want what you have to give
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 27: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/27.jpg)
The roadmap (unfolds)
Alignment for Dow
Employees (create value)
Customers (purchase value)
Investors(finance value)
Suppliers Communities
Government Unions
Direct
End users
Society
Analysts
Portfolio managers
Shareholders
![Page 28: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/28.jpg)
28
7. Brand The Law of Comprehension One’s various capacities are only as valuable as the perceived value of the whole of that being. Self: Declare yourself on the strength of your gift Organization: “Go public”
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 29: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/29.jpg)
29
Brand for Dow…
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 30: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/30.jpg)
30
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
Employees Chemicals, plastics and agricultural products are what we make, not who we are. Dow is a consumer essentials company.
![Page 31: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/31.jpg)
31
8. Sustainability The Law of the Cycle Identity governs value, which produces wealth,which fuels identity. Self: Surrender to the pull of identity Organization: Make identity the cornerstone of leadership
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 32: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/32.jpg)
32
The roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
Sustainability for Dow
“Sustainability requires making every decision with the future in mind. It is our relationship with the world around us - creating economic prosperity and social value, while contributing to the preservation of our planet.”
![Page 33: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/33.jpg)
33
Dow …
1999 • $18+ billion sales • For years, only GDP growth (3 – 4%)
2009 • $50+ billion sales • Since1999: 13% annual growth rate
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 34: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/34.jpg)
III The Science (emerges)
![Page 35: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/35.jpg)
35
The Identity Impact Survey (Summer 2009)
• One-year effort
• 1,941 respondents
• 5 companies (21 candidates)
$50MM to $8 billionGlobal and domesticPublic and privateB2B and consumer
• Sophisticated psychometrics
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 36: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/36.jpg)
36
The main finding:
‘Identity strength’ is a leading indicator of business performance…
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 37: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/37.jpg)
37
(IIS + OIS)> EE = VC
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 38: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/38.jpg)
Individual Identity Strength (IIS) has a powerful, positive effect on employee engagement (r = .500)
![Page 39: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/39.jpg)
The impact of Organizational Identity Strength (OIS) on engagement is even greater (r = .666)
![Page 40: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/40.jpg)
Together, IIS and OIS have a major impact on employee engagement (r = .686)
![Page 41: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/41.jpg)
Where does identity strength come from?
![Page 42: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/42.jpg)
What’s the payoff?
![Page 43: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/43.jpg)
In sum, identity strength reveals a company’s current value-creating capacity …
![Page 44: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/44.jpg)
…Which has vital business implications
Constrained value creation
•Handcuffed performance•Inefficient strategy deployment•Limited innovation •Overpromise, under-deliver on brand•Low-traction culture•Lower investment value
High value creation
•Superior performance•Effective strategy deployment•Efficient innovation•Strong brand•Strong culture•High investment value
Low value creation
•Sub-par performance•Ineffective strategy deployment•Depleted innovation•No meaningful brand•Dysfunctional culture•Low investment value
Pent-up value creation
•Limited performance•Inefficient strategy deployment •Limited innovation•Brand confusion•Diffuse culture•Lower investment value
![Page 45: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/45.jpg)
45
The science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
What is “Identity-based management?”
A comprehensive system for aligning the interests andactions of organizations and individuals around value creation
![Page 46: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/46.jpg)
IV The Opportunity (is now)
![Page 47: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/47.jpg)
47
…To create fundamentally healthier, higher-performing organizations, based upon their value-creating potential
• Authenticity
• Integrity
• Resilience
• Efficiency
• Endurance
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 48: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/48.jpg)
48
Seven attributes of the identity-based organization:
• Value creation is the common cause
• Business results are measured in relation to identity strength
• Identity influences strategy, including M&A
• Identity informs culture and talent management
• identity shapes brand
• identity disciplines innovation
• Identity strength indicates investment value
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 49: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/49.jpg)
49
What about “change?” The identity-based organization: • Tolerates change
• Grows through change
• Fosters change
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 50: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/50.jpg)
50
New logic, new order…
The economic universe + The identity universe =
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
2.50
2.70
2.90
3.10
3.30
3.50
3.70
3.90
Law 1 Law 2 Law 3 Law 4 Law 5 Law 6 Law 7 Law 8
Company Ratings for Each Law
All
A
EH
B
C
D
(Being)Autonomy
(Individuality)Differentiation
(Constancy)Change
(Will)Stewardship
(Possibility)Purpose
(Relationships)Alignment
(Comprehension)Brand
(Cycle)Sustainability
![Page 51: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/51.jpg)
51
W = VCi
W = Wealth VC = Value Creation
i = Identity
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 52: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/52.jpg)
Thank you!
www.theidentitycircle.com
![Page 53: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/53.jpg)
53
Identity, the human phenomenon
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 54: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/54.jpg)
54
Identity, the organizational phenomenon
The science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 55: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/55.jpg)
The Logic (is radical)
55
Does this “logic” make sense?
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 56: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/56.jpg)
And the effects of identity strength can be exponential.
![Page 57: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/57.jpg)
The Science (emerges)
57
What are the possibilities the “science of identity” holds?
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 58: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/58.jpg)
The Roadmap (unfolds)
58
Where does this identity “roadmap” lead?
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 59: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/59.jpg)
59
What are the rewards – and the risks – associated with this opportunity?
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 60: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/60.jpg)
60
“Value”… The proprietary contribution one is capable of making: • In the marketplace
• In the world
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
![Page 61: New Criteria For Effective Leadership](https://reader034.vdocuments.site/reader034/viewer/2022042702/55d4feffbb61ebdb708b45ac/html5/thumbnails/61.jpg)
61
• Status quo (assumptions)
• Awareness
• Framework
• Tools
• Metrics
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved