Level Three Leadership Jim Clawson Darden Graduate School

Level Three Leadership Jim Clawson Darden Graduate School of Business University of Virginia 1

Time Cone DEATH FUTURE TODAY PAST BIRTH 2

Looking ahead: What organizations will you be called on to lead? FUTURE TODAY 3

Looking back: What are your core leadership principles? FUTURE TODAY PAST 4

Covey’s Seven (+1) Habits 1. Be Proactive 2. Begin with the End in Mind 3. Put First Things First 4. Think Win/Win 5. Seek First to Understand 6. Synergize 7. Sharpen the Saw 8. Find Your Voice 5 Seven Habits of Highly Effective People, Stephen Covey, Simon and Schuster, 1989.

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 everyone �Don’t manage, lead �Change before you have to �If you don’t have a competitive advantage, don’t compete 6 Control Your Destiny or Someone Else Will, Noel Tichy and Stratford Sherman, Harper. Business, 1993.

Thomas Jefferson's Ten Commandments 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. 1. 7

An Exercise 8

Levels of Human Activity 1. Visible Behavior 2. Conscious Thought 3. VABEs 9 Chamberlain ’s L 3 Approach

Leadership Technique and Consequence 1. Level One Techniques: BUY-IN Pay, rewards, punishments, threats, coercion, intimidation 1. Passion 2. Engagement 3. Agreement 4. Compliance 5. Apathy 6. Passive Resistance 7. Active Resistance 2. Level Two Techniques: logic, data, evidence, reason, statistics, charts, analysis 3. Level Three Techniques: vision, purpose, values, stories, music, symbols, strategy, TPOV 10

In search of high performance Subpar 1’s Ordinary Extraordinary Good Enough 2’s 3’s 4’s How do you shift this distribution? 11 5’s

Traditional Leadership Technique �Planning �Organizing �Motivating �Controlling �Goal Setting �Performance Reviews �Reward Systems and Incentives … 12

The Moral Foundation of Extraordinary Performance Subpar Ordinary Extraordinary Good Enough 1’s 2’s 3’s 4’s Truth Telling 100 Promise Keeping Fairness 0 100 0 Respect for the Individual 100 0 0 13 Rich Teerlink, CEO Harley Davidson 5’s Olympic Gold Medal

Six Steps to Effective Leadership 1. Clarifying your center 2. 3. 4. 5. 6. 14 Clarifying what's possible Clarifying what others can contribute Supporting others so they can contribute Being relentless Measuring and celebrating progress

Key Leadership Initiatives LEADER Clarifying what others can contribute RELATIONSHIPS Supporting others so they can contribute 15 Clarifying your center Clarifying what's possible Being relentless ORGANIZATION STRATEGY Measuring and celebrating progress

Elements in Effective Leadership ENVIRONMENT Individual Others Task Organization 16 RESULTS FINANCES CUSTOMERS OPERATIONS PEOPLE

Power is the ability to get others to do what you want them to do. 17

Leadership is … 1. The ability to influence others, and 2. The willingness to influence others, 3. So that they respond voluntarily 18

LEADERSHIP POINT OF VIEW 1. See what needs to be done 2. Understand the situation thoroughly 3. Courage to Act to make it better 19

Leadership Technique and Consequence 1. Level One Techniques: BUY-IN Pay, rewards, punishments, threats, coercion, intimidation 1. Passion 2. Engagement 3. Agreement 4. Compliance 5. Apathy 6. Passive Resistance 7. Active Resistance 2. Level Two Techniques: logic, data, evidence, reason, statistics, charts, analysis 3. Level Three Techniques: vision, purpose, values, stories, music, symbols, strategy, TPOV 20

Levels of LEADING SOCIETAL ORGANIZATIONAL WORK GROUP/PROGRAM PERSONAL-- INDIVIDUAL 21

The Dance 22

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 23

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 De. Pree, Leadership Jazz, p. 7 24

Ralph Waldo Emerson There are two parties: the establishment and the movement. 25

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