Great Leadership In Troubled Times

When one reads the headlines of the day it is clear that we live in troubled times.  The Middle East and Africa are ablaze, pirates sail the seven seas, Central America is mired in drug wars, and here at home our national, state and local politicians struggle to balance fragile budgets teetering on the edge of bankruptcy.

Today, it becomes easy to believe that "desperate times call for desperate measures."  And, perhaps this is true.  The problem is that when leaders become desperate they often loose sight of what it is to be a leader, and what great leadership might look like.

Leaders are human, and subject to the same pressures that affect us all.  Public opinion is a powerful force.  It is tempting to take popular positions because by doing so leaders can feel supported, loved, and admired.  They may also believe that they have chosen a wise course of action. 

However, as the plaque posted in the Council Chamber of at least one Southern California city states:

What is right is not always popular.  What is popular is not always right.

Great leadership requires more than saying or doing things that make a large number of people happy.   Great leadership requires vision, a connection to reality, strong ethics, and sometimes, exceptional courage (Peter Koestenbaum) (One of the first blog posts in this series provides a quick overview of these attributes.)

Great leaders are those who will take the time to define "what we are trying to create as a result of our effort." (Peter Block)  Great leaders are those who understand that it is usually not the first answer that comes to mind that is the best answer.  Great leaders are those who will go deeper, beyond the obvious answers like "We are trying to balance our budget.", "We are against raising taxes.", "We are against cutting programs."  Great leaders are the ones who see, and can help other see, the connections between our vision for the future and our current reality, understand our ethical challenges, and expose their courage to act in a visible and transparent way.

If you are a leader, take time to reflect: 

• What is your vision?  Does it go far enough to answer the question "what are we trying to create as a result of our efforts?" (Click here for more on the importance of vision.)
• Are you connected to reality, and not just a point of view? (Click here... and here for more on Reality.)
• Do you understand the ethics of the situation?  Remember, ethics is more than following the law. (Click here for more on Ethics) (Also, this article - Ethics and the Prince - may be of interest.)
• Do you have the courage to do what is right?  What is right may actually be what is popular.  But it also may require opposing popular opinion.  Do you have the courage to act? (Click here and here for more on Courage and Free Will.)
• Talk about each of these points with the people you trust and value.  Don't exclude those who disagree with you.  They may be the ones who can be of the most help in clarifying your thinking.

Finally, one of the biggest challenges of the world we live in is that great leaders are often not recognized until the danger has passed.  It is likely that your efforts won't be recognized until the smoke has cleared and history is being written by the survivors.

Leave your ego at the door.  Do your best.  Invite others in to help.  And, we will all get through these troubled times.

Money and Motivation

For decades the newspapers have enjoyed reporting about Corporate America gone wrong with stories of greed inside Wall Street and big-energy, and wrongheaded decisions by corporate leaders.  Even after so many years of learning from the school of hard-knocks, the business community continues to make decisions that cause the common person to scratch their head and wonder how such smart people can be so dumb.

We all wonder what is it that makes these Captains of Industry, and the people who follow them, choose the path that leads to having their names and faces plastered on the front page as they do the "perp-walk" into the court house?

The answers are probably many, but at least one is tied to the subject of Money and Motivation.

Without getting into a long conversation about Maslow's hierarchy of needs, "the forces that motivate us tend to shift depending on our personal needs." (Why Pride Matters More Than Money, P. 27)  Everyone is driven to fill basic needs, but what is considered "basic" can vary from person to person. 

Our drive to make money beyond the amount required to provide basic needs is tied to our motivation to achieve recognition as an important and successful person.  Corporate America has learned how to use this drive in its leaders and employees to press for higher and greater achievement of certain goals, usually the sale of products, and accumulation of earnings for the company.

This is a focus on individual success, and what author Jon Katzenbach refers to as Self-Serving Pride.  Each individual is pressed to achieve a goal, sometimes at the expense of others within the organization, and sometimes at the expense of the organization itself.  Enron and the financial market collapse are great examples of workers achieving individual goals and seeking individual rewards regardless of the effect of their behavior on the health of the company or community.  Katzenbach suggests that organizations are missing the point when it comes to constructive motivation.  He writes about the power of pride, particularly institution-building pride, and its role in motivation.

By focusing on money, organizations have found a simple and quick way to push individual performance to great heights for short periods of time.  However, it is often easy for self-serving employees to take advantage of these money-based incentives, increasing their compensation at the expense of the organization's long term health. 

But for the success of the institution over long periods of time it is important to appeal to the employee's emotional commitment, and to establish systems that support the creation of institutional pride.

Leaders need to understand that what motivates the people at the top of the organization is not necessarily what motivates people on the front line.  Therefore, the things that build institutional pride at the top (quarterly earnings, competitive advantage, brand) are not necessarily the things that build institutional pride for the majority of the workforce (working for a highly respected organization, being trusted and supported by managers and supervisors, high quality products, having the tools and systems that allow employees to do great work).

People who are emotionally committed to something - be it a person, a group, an enterprise, a cause, or an aspiration - behave in ways that defy logic and often produce results that are well beyond expectations.  They pursue impossible dreams, work ridiculous hours, and resolve unsolvable problems.

The organizations that have found ways to tap into this emotional commitment are the ones that create long term success by meeting the basic needs for all employees, and establishing reward systems that recognize individual, team, and organizational success.  The employees within these systems take pride in being part of a winning team, and an organization that is highly respected.

Katzenbach points out that "money attracts and retains, whereas pride motivates." (Why Pride Matters More Than Money, P. 128) 

In our society, money is an important part of any compensation system.  Pay must be competitive, sufficient, and focused on creating institutional-pride.  But, without other systems in place that create institutional-pride, employees will always go to the organization that offers the highest pay.

Organizations that create institutional-pride retain the top performers, gain the advantage of emotional commitment, have employees who care about the quality of the service and product, and can achieve greatness.

Skills, Knowledge, And Talent

Please note that there are several great comments posted at the end of this blog. Be sure to click on the "comment" link at the bottom of this entry to see the comments. And, thank you to all who have shared their views.

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We often read or hear about leaders who are described as skillful, knowledgeable, or talented. But, what does it mean to be skillful, knowledgeable, or talented? And, can a person who wants to be a successful leader become skillful, improve their knowledge base, or expand their leadership talent?

Part of the answer lies in the definition of skills, knowledge and talents. Marcus Buckingham and Curt Coffman examine the difference between skills, knowledge and talents in their book First Break All The Rules.

According to Buckingham skills are the "how-to's of a role" (p. 83). Skills can be transferred from one person to another. A person can learn a how to hold a golf club, build a house, write a sentence, or do arithmetic. Skills are an important part of being successful at any endeavor. And, without skill any resulting action or effort will be clumsy and ineffective.

Knowledge is "what you are aware of" . There are basically two types of knowledge: "...factual knowledge - things you know, and experiential knowledge - understandings you have picked up along the way." (p. 83)

Factual knowledge would be the rules of mathematics, accounting, scientific principles, or other similar fact-based information. Like skills, fact-based knowledge can be learned from others and/or gained through some form of education. (p. 83)

Experiential knowledge is harder to teach. It is less tangible, more related to patterns and connections. To gain experiential knowledge you must take time to stop, reflect on past experiences, and find meaning. Experiential knowledge may be different for each person because each will experience a different pattern of life. (p. 83-84)

Talent is a totally different phenomenon. Talent is the pattern of thinking and feeling that comes from the very core of the individual. Some people care deeply about precision and accuracy, discipline, and responsibility. Others have a drive to compete, be competent, strive to achieve a mission, or dedicate themselves to a certain belief. And, others may feel strong empathy, value interpersonal relations, dedicate themselves to the success of a team, or exhibit great courage in overcoming resistance. (p. 84-85) Buckingham breaks talents into three categories: striving talents, thinking talents, and relating talents.

• Striving talents explain the why of a person. They help you understand why a particular person cares deeply, and why they try a little harder than others in certain circumstances.
• Thinking talents explain the how of a person. They explain how a person analyzes situations, how decisions are reached, whether thinking is linear or intuitive process, or is the person systematic or creative.
• Relating talents explain the who of a person. They explain the relationships the person is likely to build, in whom will the person trust, the way the person will relate to strangers, and expose deep feelings about the way the person will manage interpersonal relationships. (p. 85)
  

Buckingham says that talents cannot be taught. If a person does not have a particular talent, there is very little a person can do to inject it into themselves or others. Talents are difficult (if not impossible) to transfer from one person to another.

If Buckingham is right, this creates an interesting situation for us in our role as leaders. It becomes essential to understand ourselves deeply; a process that takes dedicated self-examination.

Knowing our own skills, knowledge, and talents is the start. We can then develop ourselves through purposeful learning, receiving coaching, and reflection (making sense of our experiences). We can also make use of this self-knowledge to help us identify people who bring skills, knowledge, and talents to the organization or team that are complimentary to our own.

This self-development takes courage and the ability to admit that we may not have every attribute necessary to create success (or as Dr. Peter Koestenbaum would say, "Greatness").

Relying on others is easier for people who already have a strong relationship awareness skills, or what Buckingham calls "relating talents". (P. 252) It may be harder for people who tend to be autonomous thinkers. But, regardless of your personal talents, being able to bring the right people together at the right time is essential to the success of any endeavor.

If you are interested in doing some meaningful self-reflection, nothing beats having a great coach to guide you along the path. As one of my colleagues (and one of my unofficial coaches) Ray Patchett pointed out to me one day "Even Michael Jordan has a coach." No matter where you are in your career, the corporate hierarchy, or how good you think you are, there is no substitute for having someone who can help you take a realistic look at yourself.

In his article "Teaching Smart People How to Learn" (Harvard Business Review, May , 1991), Chris Argyris points out that professionals often find learning about themselves most difficult. Self-examination and questioning our own behavior is extremely difficult, particularly for those who have achieved some professional status. Having someone who can help you through the discovery process, who cares about your success, opens pathways to greatness that many never discover.

The more you understand about yourself the more you are going to be able to understand others. Also, the better you understand your own skills, knowledge, and talents, the better you can identify where to improve yourself, and when to bring others close to you to help fill in gaps.

Emotional Intelligence and the Leadership Diamond

In the highly acclaimed book Primal Leadership, Daniel Goleman, and his co-authors Richard Boyatzis and Annie McKee, describe the attributes of great leadership. In chapter one, in the first paragraph they say “Great leadership works through the emotions.”

This bold statement moves the discussion of leadership away from formulas and “how-to” manuals into the realm of the mind, and the human side of the workplace. Goleman says

No matter what leaders set out to do … their success depends on how they do it. Even if they get everything else just right, if leaders fail in this primal task of driving emotions in the right direction, nothing they do will work as well as it could or should.

Goleman and the co-authors go on to show how emotional intelligence (EI) includes elements of self-awareness and self-management, social awareness, and relationship management.

As you read Goleman’s thoughts about leadership you discover that ethics and empathy play a huge role in defining great leadership. Words such as emotions, self-worth, transparency, honesty, integrity, trustworthiness, flexibility, initiative, optimism, empathy, understanding, the needs of others, inspiration, and cooperation are used to describe the traits of great leaders.

Those of you who are familiar with the leadership diamond may be seeing the connection between the Ethics point of the Leadership Diamond and the characteristics of great leaders described by Goleman.

Goleman goes on to connect the Ethics and Vision points of the diamond by stating:

Of all the EI competencies… empathy matters most to visionary leadership. The ability to sense how others feel and to understand their perspectives means that a leader can articulate a truly inspirational vision.” (Primal Leadership, p. 59)

For those of you interested in how the human side of the Leadership Diamond works, I encourage you to pick up Goleman’s book, Primal Leadership, and give it a quick read. You will learn that great leadership (part of what creates an opportunity to achieve Greatness as defined by the Leadership Diamond) is a key factor in the success of an organization. Using your emotional intelligence, and being able to get in touch with the human side of the organization is an essential part of achieving "greatness". But, it does not take a Super Hero (male or female) to be a great leader. We all have the ability to bring our emotional intelligence to the forefront, and to create opportunities for our greatness within our organizations.

Goleman’s work is a valuable contribution to those trying to become great leaders, and leaders who can successfully apply the Leadership Diamond in their daily life.

Ethics

The Ethics point on the Leadership Diamond is probably one of the most difficult to define. When we hear the word "Ethics" we immediately think of the most common meaning: the process of dealing with the difference between what is right an wrong, or the more philosophical use of the term related to existing within society's rules and morals. Although these definitions are helpful, when we use the term in relation to the Leadership Diamond we have an additional layer of meaning to consider.

Ethics, when used as part of the Leadership Diamond model means being of service, doing things that honor you and others as human beings, and understanding that people matter. Ethics incorporates empathy for others and understanding that there are principles that help us decide which path leads to integrity, trustworthiness, and keeping our promises. (The Philosophic Consultant, © 2003, p. 107-108).

In the larger world, a breach of ethics can lead to punishment and jail. This lapse in ethics usually means that laws have been broken, often for personal gain at the expense of others. This is what we saw with ENRON, Broadcom, and Tyco, just to name a few. It is also hundreds of cases of backdating stock options, misuse of corporate money, and other examples of fraud.

However, in the leadership world of Peter Koestenbaum, ethics goes deeper than the legal system. At its philosophical roots ethics contains empathy and principle. “Empathy is the struggle against emotional indifference. And principle is the fight against unscrupulous behavior.” (The Philosophic Consultant, © 2003, p. 108). Dr. Koestenbaum goes on to add that ethics involves “reaching out, understanding how other feel, and caring about that.” He also says that principle is “doing what is right, not necessarily what feels good, keeping promises, integrity, and being thoroughly trustworthy."

In its Leadership Diamond context, a breach of ethics could be a behavior that would be considered illegal, but it is more likely that this ethical slip would be a personal failure of character that would make it difficult for the person creating the breach to be a strong and effective leader.

If we look at the ethics of the law as the body, the ethics of the Leadership Diamond would be the sole. The two together make the complete person, and the effective leader.

The authors of the Successful Manager’s Handbook (Previsor, © 2004, p. 586-588) suggest that in order to make ethical decisions in business, a manager or leader must give thought in advance to a number of factors that will affect the decisions made in support of the business. These factors include:

• The values involved for the individual, company, community
• How different constituencies view the issues before you
• What your values and code of ethics tell you about the decision you are about to make
• The consequences of the various choices you might make
• Listen to and consider the concerns of others

Finally, a leader should not leave the consideration of ethics and conduct until faced with a situation requiring immediate action. Devoting time to examining personal, organizational, and community values, morals and ethics, and developing your own code of ethics that supports your vision of what you are trying to create is essential to being able to use the strength of the Leadership Diamond in to create greatness in all that you do. 

(Note - Wikipedia has an interesting article on Ethics on its web site. Although Wikipedia is not known as a reliable source of information for academic purposes, you might find this summary of the philosophical view of ethics an interesting read.)

The View from the Balcony

Understanding the concepts of the Leadership Diamond and putting them into use are two very different things. When you are in the heat of the moment, locked in a debate with someone with strong opinions, struggling to make yourself heard, it is difficult to keep your vision (what you are trying to create as a result of your effort), ethics (how your actions will affect others), and reality (the real, and undeniable facts) in the forefront of your mind. While locked in a struggle with others the desire to win, to make your point, and to show your courage, will often hide more rational thoughts.

However, my good friend, Ray Patchett, has taught me that this is the exact moment when you can be most effective by taking a moment to mentally step from the stage, where you are one of the players, into the balcony, where you can see the entire play unfold. This mental leap up into the cheap seats gives you a new perspective of the entire drama. You can see each of the players and the roles they have assumed, the audience (those affected by the outcome of the drama), the theater (the environment in which the play is taking place), the props (the theatrical devices that are part of the play to enhance the effect), and yourself.

When you make a mental move away from the argument to a vantage point that lets you perceive all of the parts, you can more effectively apply the concepts of the Diamond to your role. Although you cannot be responsible for how others will behave, you can be responsible for your performance.

You can practice this in situations at times when you are not an actor, but find yourself to be an engaged observer. Step back to see all of the parts that are being played. Hear the words that are being used that attempt to make each player's points. And, think more clearly about how vision, ethics, reality and courage help to create a space for greatness.

The Basic Leadership Diamond

We will be having many discussions about the Leadership Diamond, and how it applies to life, the universe, and everything (to quote Douglas Adams). So, just to make the corners of the diamond visible to all, I am posting this diagram summarizing, in the most basic terms, the concepts of the diamond. 

In general the basic concepts are: 

Vision:Having a clear vision of what it is you are trying to create as a result of your effort is essential to being able to know how to apply the other points of the diamond. 

Ethics:

Ethics, as it is used in the Diamond model is more than behaving within the law. The Diamond uses this term to describe an attitude of care and empathy for humanity, and how our actions affect others. It includes our ability to dedicate ourselves to the well being of another human being.

Courage:

For me, courage is the action point of the Diamond. It takes courage to face the challenges that stand between today's reality and the vision of the future. It takes courage to change the status quo. It takes courage to move when others are against you. It takes courage to begin change.

Reality:

Being connected to the real world is essential for success. You cannot live in a fantasy world. You must face the realities of today - the moral, financial, legal, and physical realities. You cannot pretend that realities do not exist. However, once you are grounded in reality, you can begin to see the steps necessary to deliver on the vision you have in mind.

Polarities:

Conflict and contradiction are part of life. The world is filled with cases where you will be faced with polarities - conflicts between two ideals or choices. What you will discover is that the world is not black or white, good or evil, right or wrong. You soon find that the world is comprised of polarities where both cases are valid - it is black AND white, it is good AND evil, at the same time. Balancing polarities is part of mastering the Leadership Diamond.

Greatness:

This is perhaps the most difficult of the basic concepts of the Diamond. To me, greatness comes about when a person has pushed the points of the Diamond to their maximum extent. When your vision is as grand as you can make it, when your ethical base is as strong as possible, when you are aware of all of the realities surrounding you, and when your courage is at its peak, you can achieve greatness.