Level Three Leadership

Jim Clawson

Darden Graduate School of Business

University of Virginia

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Time Cone

FUTURE

PAST

TODAY

BIRTH

DEATH

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Looking ahead: What organizations will you be called on to lead?

FUTURE

TODAY

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Looking back: What are your core leadership principles?

FUTURE

PAST

TODAY

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Covey’s Seven (+1) Habits1. Be Proactive2. Begin with the End in

Mind3. Put First Things First4. Think Win/Win5. Seek First to

Understand6. Synergize7. Sharpen the Saw8. Find Your Voice

Seven Habits of Highly Effective People, Stephen Covey, Simon and Schuster, 1989.5

Jack Welch’s Operating Principles

Control Your Destiny or Someone Else Will

Face Reality as it is, not as it was or as you wish it were

Be candid with everyoneDon’t manage, leadChange before you have toIf you don’t have a competitive

advantage, don’t competeControl Your Destiny or Someone Else Will, Noel Tichy and Stratford Sherman, HarperBusiness, 1993.

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Thomas Jefferson's Ten Commandments

1. Never put off until tomorrow what you can do today.2. Never trouble another for what you can do for

yourself.3. Never spend your money before you have earned it.4. Never buy what you don't want because it is cheap.5. Pride costs more than hunger, thirst, and cold.6. We seldom repent of having eaten too little.7. Nothing is troublesome that we do willingly.8. How much pain the evils have cost us that never

happened.9. Take things always by the smooth handle.10. When angry, count 10 before you speak; if very

angry, count 100.7

An Exercise

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1. Visible Behavior

2. Conscious Thought

3. VABEs

Levels of Human Activity

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Chamberlain’s L3

Approach

Leadership Technique and Consequence

1.Level One Techniques: Pay, rewards, punishments, threats, coercion, intimidation

2.Level Two Techniques: logic, data, evidence, reason, statistics, charts, analysis

3.Level Three Techniques: vision, purpose, values, stories, music, symbols, strategy, TPOV

BUY-IN1. Passion2. Engagement3. Agreement4. Compliance5. Apathy6. Passive

Resistance7. Active Resistance

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In search of high performance

Subpar Extra-ordinary

Ordinary

Good Enough1’s

2’s 3’s 4’s5’s

How do you shift this distribution?

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Traditional Leadership TechniquePlanningOrganizingMotivatingControllingGoal SettingPerformance ReviewsReward Systems and Incentives …

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The Moral Foundation of Extraordinary Performance

Subpar Extra-ordinary

Ordinary

0 100Truth Telling

Promise KeepingFairness

Respect for the Individual

Good Enough

Rich Teerlink, CEO Harley Davidson

1’s2’s 3’s 4’s

5’s

0

0

0

100

100

100

OlympicGold Medal

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Six Steps to Effective Leadership

1. Clarifying your center2. Clarifying what's possible3. Clarifying what others can contribute4. Supporting others so they can contribute 5. Being relentless6. Measuring and celebrating progress

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Key Leadership Initiatives

LEADER

STRATEGY

ORGANI-ZATION

RELATION-SHIPS

Clarifying your center

Clarifying what's possible

Clarifying what others can contribute

Supporting others so they can contribute

Being relentless

Measuring and celebrating progress

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RESULTS

FINANCESCUSTOMERSOPERATIONS

PEOPLE

RESULTS

FINANCESCUSTOMERSOPERATIONS

PEOPLE

Elements in Effective Leadership

Individual

TaskOthers

Organization

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ENVIRONMENT

Poweris the

ability to getothers to do

what you wantthem to do.

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Leadership is … 1. The ability to influence others, and

2. The willingness to influence others,

3. So that they respond voluntarily.

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LEADERSHIP POINT OF VIEW

1. See what needs to be done

2. Understand the situation thoroughly

3. Courage to Act to make it better

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Leadership Technique and Consequence

1.Level One Techniques: Pay, rewards, punishments, threats, coercion, intimidation

2.Level Two Techniques: logic, data, evidence, reason, statistics, charts, analysis

3.Level Three Techniques: vision, purpose, values, stories, music, symbols, strategy, TPOV

BUY-IN1. Passion2. Engagement3. Agreement4. Compliance5. Apathy6. Passive

Resistance7. Active Resistance

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Levels of LEADING

SOCIETAL

ORGANIZATIONAL

WORK GROUP/PROGRAM

PERSONAL-- INDIVIDUAL

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The Dance22

Organizations are made of people. As our activities become global, understanding other people in different parts of the world--all the way to the roots of their thinking--is very important. That means understanding the factors on which their values and sense of judgment are based.

Yotaro Kobayashi, chair of Fuji Xerox, Fortune, 11/27/95, p. 100

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Leadership is, as you know, not a position but a job. It’s hard and exciting and good work. It’s also a serious meddling in other people’s lives. One examines leadership beginning not with techniques but rather with premises, not with tools but with beliefs, and not with systems but with understandings. This I truly believe.

Max DePree, Leadership Jazz, p. 7

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Ralph Waldo Emerson

There are two parties: the establishment and the movement.

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