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The Leadership Triangle– by Kevin Ford and Ken Tucker                –

 Published by Intermedia Publishing Group
A ripping yarn summarised by Neil Rainey 2012




                                                WWW.Neilsbooks.com
INSIDE THIS
SUMMARY

     Summary of the             Summary of the Summary
     Summary
                             1) 3 types of leadership challenges face us. Challenges can be
  1 The East Lake               Strategic, Tactical or Transformational. The two initial jobs of a
     challenge                  leader are to identify the type of challenge we are facing and
  2 The Leadership              choose the right leadership option
     Triangle
  3 The Options              2) Strategic Challenges – are about responding to the world outside
                                the organisation. These are challenges you anticipate, not
  4 Strategic - Toolkit
                                immediate problems. They are challenges rooted in the future.
  5 Strategic - Vision          An example could be entrants to your market who have a
  6 Tactical - Hiring           different business model and represent a future threat.
  7 Tactical –
     identifying strengths   3) Strategic responses - the leader is a synthesiser, bringing
                                together the elements, the personalities, the interest groups. To
  8 Tactical – get the
                                do this well means seeking to understand things first, being a
     most from people
                                vision caster. Questioning, explore options, consider outcomes
  9 Tactical – get the          and have an open mind before making decisions. Then executing
     most from teams            to achieve the objective. A leader must inspire when using the
  10 Transformational -         strategic option and be resilient - results may go backward for
     Code                       some time before the fruits of the strategy start to kick in. An
  11 Transformational –         early task is to identify Strategic Inflection points - spot
     Adaptive Leadership        fundamental change in a market. See an inflection point coming
                                and you can seize opportunities.

                             4) Tactical Challenges are operational or technical problems.
                                Challenges of this nature make up the bulk of the challenges
 View of the book:              faced by an operationally minded leader. They are fixed by work
                                and expertise. By great teams of motivated people.
 The Leadership Triangle
                             5) Tactical responses – the leader applies expertise. The leader will
 is about applied
                                have a knowledge base and skill set to solve these particular and
 situational leadership.
                                specific problems. Hire right. Get the right people on the bus and
 The authors are
                                ensure that they are sitting in the right seat on the bus. Identify
 consultants who observe
                                strengths of each member of the team and play to those
 and use methods to help
                                strengths. Understand the individuals in the team, what they
 organisations meet their
                                want to achieve and their purpose. Create a climate of trust –
 various challenges. In
                                listen, respond plainly, back up with deeds and care about the
 the book, they
                                individual. Create dissonance - dissatisfaction with the status
 summarise the
                                quo. Provide clear direction, coaching and support and an
 methodologies in an
                                environment of self discovery.
 easy to grasp way.
                             6) Transformational Challenges relate to values, behaviours and
 “A powerful read”              attitudes. They are not always visible to the naked eye and are
 Stephen M.R. Covey             embedded in our system. These are the ones that you think of as
 (Author: The Speed of          either insoluble or very tough, a product of competing values.
 Trust)
                             7) Transformational responses - the leader is a facilitator of
 “I love this book!” Ken        outcomes, identifying the root perspective of challenges and
 Blanchard (co-Author           raising them to the visibility of all involved. Building leadership
 The One Minute                 and decision making in the team. Know the history, values, and
 Manager)                       ways of working, stories and legends of an organisation and
                                leverage that for the good. Expose competing values. An example


                                                     Summary by Neil Rainey 2012
in business this can be the need for speed to get a product to
market vs. the need to get the product perfect from a production
and billing and ongoing care sense. This conflict of values – the
need to meet the market vs. the need to get it right can drive
organisations into warring factions. A transformational leader
facilitates constructive conflict between groups to gain a greater
level of understanding as an outcome. Sustainable leadership is
about helping the team undertake leadership themselves rather
than continuously looking to a figurehead to do it for them. Use
dialogue and discussion to build to decision.




                    Summary by Neil Rainey 2012
1) The East Lake challenge
                           The Golfing legacy gone bad
                           East Lake is a neighbourhood in Atlanta, home to the golf course that
                           1930’s golfing legend Bobby Jones regarded as his home course. Jones
                           was the amateur golfer who won the US Golfing championship a
                           number of times and who was responsible for the building of the
                           Augusta championship course, the home of the US Masters tournament.

                           In the 1970’s a housing project called East Lake Meadows had been
                           built in East Lake. By 1995 East Lake had become a place not to be in
                           at night and to hide away if you lived there. The problem with the
                           place was on just about every level you could think of – poverty, drugs,
                           alcohol abuse, and muggings. The police called the place a “war
                           zone”. The crime rate was 18 times the national average and the
                           average age of a grandmother in the area was 32. The employment
                           rate was 14%. 75% of Atlanta’s prison population came from 5
                           neighbourhoods. East Lake was one of them and the biggest source.

                           Where do you start to turn a community around?
                           This question is equally relevant for a troubled not-for-profit
                           organisation, or a corporation. Where do you start? The challenge is
                           multi layered, complex and overwhelming. In the case of East Lake,
                           most people had just walked away from the problem as it was so
East Lake was a “War
                           overwhelming. Until Tom Cousins, a self made man and long time
Zone”. A failed
                           Atlanta resident decided to meet the challenge. He had read an article
community on every
                           about just how bad the neighbourhood was and went there himself. He
level. Yet this complex,
                           dedicated himself to doing something about it. So where did he start?
multi layered challenge
was tackled and
                           Get resources
overcome in a
                           He started by buying the now threadbare golf club in East Lake, which
sustainable way.
                           neighboured the East Lake Meadows housing project. He then started
                           twisting the arm of corporations to become corporate members of the
The key was to make
                           club. The fee was $250,000 with $200,000 going to a rebuilding fund
the competing values of
                           for East Lake Meadows. He convinced the US Professional Golf
the many different
                           Association to have an annual PGA tour event at the Golf Club. He was
stakeholders clear to
                           setting up the resource base for a complete renewal of the
them all and facilitate
                           neighbourhood. His starting point therefore was to rebuild the
collaboration.
                           infrastructure with private and public funding.

                           Build the team
                           He had to build a team. He pulled in individual leaders to help the
                           cause – people from corporate life, the legal professions, academia and
                           politics.

                           And he had to build alliances and relationships with the interest
                           parties that existed in the community. The support of all of these
                           would be needed to achieve genuine and lasting change. They would
                           also be needed just to get permission to make the change happen.
                           Alliances had to be built with the Neighbourhood association, the
                           politicians – local and state, the housing authority, the public schools
                           authority, private partners (who provided money) and residents of East
                           Lake Meadows itself.

                           Create a vision and communicate it
                           The reconstruction team had a vision of a model community, full of
                           law abiding, working residents who looked out for one another. A
                           vision that it is possible to break the cycle of poverty, crime and
                           despair. It was one thing to have the vision, it was quite another to

                                                     Summary by Neil Rainey 2012
have the wide group of players involved in the community believe in
the vision.

Transformational change
To move to the end of the story, crime is down 95%. The employment
rate has moved from 14% to 71%. Residents on welfare are down from
58% to 5%. The properties have all been refurbished. The
Neighbourhood Association works collaboratively with the team – from
an adversarial, mistrustful start. A US PGA program to teach
participants life affirming values – open to the residents – is in place at
the PGA standard East Lakes golf course. In short they “tore down hell
and replaced it with Heaven”. East Lake as a whole and East Lake
Meadows in particular are no longer war zones. As we look through the
Leadership Triangle in this book, we will refer back to this example.

This book shall deal with 3 types of leadership. One is transformational
leadership and this was certainly used in East Lakes.




                           Summary by Neil Rainey 2012
2) The Leadership Triangle
                        Breaking with habit
                        Because our techniques have worked for us in the past, it does not
                        mean they will work for every problem. Painting a vision and
                        communicating it clearly may be a textbook way to move people
                        forward, but what if it is not enough? In the East Lake case it would
                        definitely not been enough. Other techniques were needed, belief
                        needed to be built, trust restored, relationships repaired and rebuilt.

                        Options
                        There are always options, different ways to lead according to the
                        nature of the challenge. Skilful leaders know the right option to take.
                        This book shows 3 clear options to take – the 3 that make up the
                        Leadership Triangle. There are 3 challenge types that may face us.
                        Strategic, Tactical or Transformational.


                        Two initial jobs of a leader to use the Triangle
                        1) Identify the type of challenge we are facing - Is it an expert issue
                        just requiring a tactical fix? Or does it relate to external factors
                        requiring a more strategic fix. Or does it involve competing values
                        resulting in incongruent behaviours and attitudes requiring a
                        transformational approach.
First identify the
type of challenge you
                        2) Choose the right option based on the nature of the challenge -
face, and then
                        this can be a struggle for us because we have our favoured approach.
choose the right
                        And it is our favourite approach that can cause us to fail. The
option to tackle the
                        Leadership Triangle requires situational leadership and that requires of
challenge.
                        us a level of leadership flexibility.


                                         The Leadership Triangle




                                                     Leadership
                                   Tactical          Triangle           Strategic




                                                    Transformational




                                                  Summary by Neil Rainey 2012
3) The Leadership Triangle - Options
                        The Strategic Option

                        Strategic Challenges – Key Features
                        1) Are about responding to the world outside the organisation.
                        2) Are challenges you anticipate, not immediate problems.
                        3) Viewing the external environment (beyond your department or
                            organisation) gives you the data to decide how to best adapt to the
                            external opportunities or challenges.
                        4) Tactical responses will not work for Strategic challenges.
                        5) Strategic response will utilise your key differentiators tackle the
                            challenge. And will often hinge on your Unique Value Proposition.
                        6) When you use the Strategic option you are looking at challenges
                            that are rooted in the future. It could be entrants to your market
                            who have a different business model and represent a future threat.

                        If your organisation is facing a serious revenue decline, tactical
                        responses may include immediate layoffs, advertising campaigns to
                        stem the decline. These are often appropriate responses, but in
                        themselves not enough to tackle the strategic issues facing your
                        business.

                        Useful Questions to use for the Strategic option
Strategic challenges    1) What services or products should we no longer offer/develop an
are where the game         exit strategy for?
is about to change.     2) What customer needs should we seek to meet that we are not at
                           present?
                        3) What new products could we introduce?
                        4) What is our quality maintenance plan in the face of reduced
                           margins?

                        The Leaders role in a strategic challenge is to synthesise – identify
                        patterns and trends, see beyond the current realities to future
                        outcomes.

                        The Tactical Option

                        Tactical Challenges – Key Features
                        1) These are operational or technical problems.
                        2) Challenges of this nature make up the bulk of the challenges faced
                           by an operationally minded leader.
                        3) They are fixed by work and expertise. If you have a broken part,
                           you get the right person to the right place to fix it, quickly.
                        4) Tactical responses are useful when the problem is a straightforward
                           one fixed with a technical fix.

 Tactical challenges    The temptation is though, to use tactical quick fixes for challenges
 can be fixed quickly   that are deeper rooted, more strategic in nature. In the East Lake case
 and are the majority   many tactical responses had been attempted and failed. One of the
 of the challenges      reasons for the initial distrust of the local community and the
 faced by               neighbourhood association was seeing the people who wanted to
 operationally minded   rejuvenate the place as yet another quick fix "do-gooder" brigade.
 leaders.               Responding tactically to deeper challenges seems a mistake that is
                        easy to avoid. The temptation for a “quick win” lures the organisation
                        leaving the strategic challenge unaddressed.




                                                  Summary by Neil Rainey 2012
The Leaders role in a Tactical Challenge is to apply expertise. The
                       leader will have a knowledge base and skill set to solve these
                       particular and specific problems.

                       The Transformational Option

                       Transformational Challenges
                       Key features:
                       1) Relate to values, behaviours and attitudes
                       2) Not always visible to the naked eye/are rooted in our system
                       3) Are the ones that you think of as either insoluble or very tough
                       4) Is a product of competing values. In the East Lake case it was the
                          values of profit (the corporations involved), low political risk (the
                          political entities involved) and safety and home (for the residents).

                       The real leadership work is bringing these competing values into
Transformational       visibility of all through constructive conflict. Done well this takes the
challenges require     main players in a Transformational Challenge to a higher level of trust
facilitative           and collaboration. Only through this can behaviours and attitudes
leadership. It is      change.
about framing issues
in a way for all to    In one example a new minister of a church began running the church in
understand then        a way that communicated clear vision. This attracted an increased
helping the group      congregation. Conflict emerged however as the prior minister had been
solve the challenge.   more of a man of the people, knowing his parishioners and spending
                       time with them. The group that favoured the old style did not want a
                       heartless institution. The new members of the congregation wanted a
                       place with bold vision and run like a well run business. Both competing
                       parties saw their way as the way to carry out the spiritual mandate.
                       The way forward was to surface the challenge and bring the competing
                       values involved to the full view of the whole group. This brought them
                       to a new level of mutual understanding and a new way forward.

                       The Leaders role in a Transformational Challenge is to facilitate. Not
                       making decisions but rather identifying the root perspective of
                       challenges and raise them to the visibility of all involved. From there
                       to facilitate ways forward.




                                                 Summary by Neil Rainey 2012
4) Leading using the Strategic Option - Toolkit
                       Getting really efficient doesn’t always do it
                       Many leaders believe that Operational excellence will win through. As
                       Stephen Covey says “what if you are leaning your ladder against the
                       wrong wall?” A team can become operationally brilliant at climbing
                       ladders to scale the wall. Strategy tells you if you are climbing the
                       right wall. Blockbuster Video in the US had awesome operations with
                       great distribution channels in the video rental market. They dominated
                       the video rental market for years. They were operationally great, but
                       that did not save them from the internet and download market. Netflix
                       and Red Box came to dominate that market. Blockbuster realised too
                       late that they should join that market. They went bankrupt in 2010.
                       They had tried to tackle a Strategic challenge with Tactical Options.

Strategy is a          Strategy and Context
systemic method of     Strategy is a systemic method of differentiation from the competition.
differentiation from   It is based on a prioritisation of activities, done in ways unique to the
the competition.       organisation, executed via the practices that exist in the organisation.
                       The context of each organisation is unique. This shows up in the
                       marketplace. Competing organisations cannot recreate the strategies
                       of competitors exactly. There are many examples of this. In fast food;
                       McDonalds could not exactly mimic the strategies of Subway for
                       example. Or vice versa. Each has its own context.

                       Atlanta is a city with residual overtones of the US Civil War in terms of
                       race relations. It is also progressive in culture and politics with a
                       strong leadership tradition in the African-American community. It is a
                       city where the desires of politicians, business people, religious leaders
                       and residents do not converge. This was the context for the East Lake
                       example. The strategy was implemented within that context.
                       Implementing a similar strategy in, for example, New York or Paris
                       would require different strategic elements due to the context of the
                       city the strategy was being implemented within.

                       The Leaders Toolkit for the Strategic Option
                       1) Playing the right role – In the Strategic option the leader is a
                          synthesiser, bringing together the elements, the personalities, the
                          interest groups. To do this well means seeking to understand things
                          first. Techniques such as the “5 whys” approach can be helpful
                          here. This technique drills down using a series of “why?” questions
                          on a subject. The technique questions assumptions and quickly gets
                          to the root of context. Seeking to understand is an ongoing activity
                          for the Strategic Option, not just something that is done once, at
                          the beginning.

                       2) Having the right tone – the Strategic Leader has to be a vision
                          caster. A vision that captures both hearts and minds. Followers
                          have to be able to personally feel part of the vision. The vision has
                          to clearly state how it will improve the life of the various
                          stakeholders.

                       3) Questioning – for the Strategic option the high level question is
                          “What is the objective”. Then execute on a achieving the
                          objective. The question at a more detailed level will be situation
                          specific. For example in a situation of losing market share it might
                          be “What must we do to respond to this change in the




                                                 Summary by Neil Rainey 2012
environment, by differentiating ourselves or moving to an arena of
                           no competition, so that we can fulfil our mission?”

                        4) Having a clear approach – with the Strategic Option what worked
                           in the past will not work now. We need to research, explore
                           options, consider outcomes and have an open mind before making
                           decisions. This contrasts to the Tactical where we use what we
                           know to solve the problem swiftly.

                        5) Creating great Interaction – a leader must inspire when using the
                           Strategic Option. That requires tenacity, resilience and building
                           trust. It does not mean that the leader needs to exude charisma.

Resiliency matters. A   6) Having resiliency – warrants being highlighted as a pivotal
leader choosing the        characteristic for the leader seeking the Strategic Option. The
strategic option has       strategy may initially seem to backfire. Results may go backward
to be prepared to          for some time before the fruits of the strategy start to kick in.
stay the course even       Being resilient to nay Sayers and critics is vital. A back down or a U
if short term results      turn may cripple an otherwise great strategy. It means keeping
are awful.                 going when the odds seem stacked against the team.

                        7) Distinguishing between want tos and need tos – Andy Grove, CEO
                           of Intel talks of the “Valley of Death” where the cost of change or
                           inaction becomes obvious and denial is no longer an option. Holding
                           on the Want tos at this stage (the things we know) is tempting. It is
                           though when you need to focus on the strategic “need tos”. This is
                           also the innovators dilemma. Innovation gives strategic advantage
                           and our inclination is to cling to the advantage by exploiting the
                           innovation. In fact the only way to keep our advantage is by to
                           continue to break with the past and encourage experimentation.
                           This requires a culture where failure is accepted.

                        8) Paying attention – to customers – as they insure survival. Also
                           paying attention to the regulatory landscape. Paying attention to
                           complementary businesses – with whom you can grow. And paying
                           attention to competitors – who may be seeing the future before you
                           or conversely be making the wrong strategic choices. By paying
                           attention you are actively listening, you are seeking to understand
                           and inform your vision and strengthen your Strategic Option.

                        9) Creating unlikely alliances – these may be industry wide alliances
                           and may even involve competitors. In an ultra competitive sector
                           of the building industry in the US the individual companies were
                           losing productivity. They formed an alliance on building codes and
                           techniques and they collaborated on design, disclosure and
                           contracting methodologies. These led to speedier and cheaper
                           building techniques for the industry.

                        10) Communicating clearly – vision will answer “where are we going?”
                           and the strategy will answer “what we have to do to stay
                           relevant?” It will all be for nothing though if we do not
                           communicate. The communication has to be crystal clear.




                                                  Summary by Neil Rainey 2012
5) Leading using the Strategic Option - Vision
                        Defining Vision
                        In 1970, Bill Gates saw that every home would have a personal
                        computer. That seems obvious now but did not make sense to many in
                        1970 – particularly those in the computer industry. Gates saw the
                        industry was at a Strategic Inflection point. Vision requires us to
                        identify that we are at a point of Strategic Inflection and then to
                        understand the opportunities that are available.

                        Identifying Strategic Inflection points
                        Recognising fundamental change in a market and what it means is a
                        key task for a leader taking the Strategic Option. A key piece of that
                        change is where a “strategic inflection point” is reached in an industry
                        or market or environment. It could be, as it is in the newspaper
                        business, digitisation and the implications for your industry. It could be
                        privatisation from Government ownership or deregulation of an
                        industry. See it coming and you can seize opportunities. To help ask
                        two questions:

                        1) When your competitor is different from the past – if you had a
                           silver bullet to shoot one competitor down, who would it be? If the
                           answer is different from the way it has been for a while, you may
                           be at an inflection point.

                        2) When people around you start talking gibberish. Responding to
                           different threats and challenges than they have in the past. That is
Recognising Strategic      a sign that something different is happening. Listen hard.
Inflection Points and
acting on them will     Questions for the Strategic Option and creation of vision
give an advantage. Is   1) What should we say yes to and what should we say no to?
your industry or        2) What do our customers really value?
business at that        3) How are competitors doing things differently than they used to?
point?                  4) What new competitors have emerged?
                        5) Who is our target audience, really?
                        6) Who is our customer and what will it take to have them help us
                           market our products and services?
                        7) What workarounds have our employees adopted that we should
                           learn from?
                        8) If we could create a list of areas where we could be number 1,
                           what would that list look like?
                        9) What legacy will future leaders say that we left them?

                        Further Questions to consider
                        Strategic questions from 20th century thinker Peter Drucker and author
                        Jim Collins are:
                        1) What business are we in?
                        2) Who is our customer?
                        3) What are we most passionate about?
                        4) What can we do better than anyone else?
                        5) What drives our economic engine?

                        More on Communication
                        With a crystal clear vision that all members of the organisation
                        understand, ethical or value based decisions become easy.

                        It is the Disney employee who leaves what he is doing to take a picture
                        of two tourists who have no-one to take their snap. Or the employee



                                                  Summary by Neil Rainey 2012
who gives you a credit on an incorrect transaction before you ask.
                        These value based decisions can be achieved by the most junior
                        employee by clearly communicating what matters most.

                        Chick-Fil-A, with 42 years consecutive profit growth (as at 2010) and
                        1,500 restaurants. For them success is about reinforcing what matters
                        most - the value of children, building the next generation and faith.
                        Not great chicken, profits or return on investment, their view is these
                        are outcomes flowing from the basic message about why they are doing
                        what they are doing and who for. And their employees get it.

                        Zappo’s – an online shoe retailer grew from zero to $1Bn US in turnover
                        in a decade. For them it is not just about shoes, it is all about fanatical
                        customer service. This is drummed in from day 1 on the job. After your
                        first 4 weeks at the company, your training period, you are offered
                        $3,000 to leave! This is to check in that you really do believe in the
                        value of customers. The internet is full of legendary customer service
                        stories generated by this remarkable company resulting from the
                        customer centric culture that they have created.

                        At East Lake the team saw the residents, particularly the children, as
                        the key customers and never stopped referring to them as such.
                        Everyone involved in East Lake had crystal clarity about why they were
                        undertaking the rejuvenation and who it was for. Clarity drives effort.

                        Permission Marketing
                        In an age of distributed media it is no longer the case that we mass
                        market, grab attention and sell. In a connected, social media world,
                        customer savvy is well beyond that. We need to get attention and then
                        having got permission to sell from a customer, deliver to them and
                        deliver brilliantly. So now, once you know who your customers are, get
                        their attention and most importantly keep your promises.

                        Enough talk - taking action
                        There are two action types:

                        1) Systemic – these are very consequential actions that cause those
Strategic actions can
                           who see it to change their actions and behaviours. At IBM CEO Lou
be deep seated and
                           Gerstner changed an ailing company from individually run Fiefdoms
far reaching
                           such as IBM UK and IBM Spain to global practices such as the Global
(systemic) or small
                           Services group.
but very visible and
a signal of change
                        2) Symbolic – these are actions which have low real consequence but
(symbolic)
                           tell people that things are really changing around here. In New
                           York, Mayor Rudolph Giuliani banned the “squeegee men” who
                           hassled drivers for money for an unwanted window clean of their
                           car. He also clamped down on minor crime in the belief that
                           unchecked minor crime encourages major crime. The
                           disappearance of the highly visible and irritating squeegee men had
                           high symbolic value of change for New Yorkers. It said that
                           something new and very different was happening.




                                                   Summary by Neil Rainey 2012
6) Leading using the Tactical Option - Hiring
                         “Never hire anyone you will have to manage”
                         Is a provocative statement from Jim Collins (author: Good to Great). It
                         is an aspirational statement. Collins spoke of getting the right people
                         on the bus and ensuring that they were sitting in the right seat on the
                         bus. Microsoft has a “hire smart people who can think” ethos. Google
                         has a “no Bozos” hiring rule. It is about hiring the best team members
                         who perform their job naturally with minimal interference/direction.
                         Great theory – how do you do it? Start by asking a basic question.

                         Why do I bring people onto the team?
                         We rarely think deeply about this. We hire people for 3 reasons:

                         1) To fulfil the promise of a role with excellence – for example, if
                            you are looking for a person who shows empathy, in a caring
                            profession, do they have examples of that behaviour in their
                            personal life? If you are looking for someone to sell, do they do this
                            naturally in their life?

                            Malcolm Gladwell in “Outliers” described the 10,000 hour rule – the
                            length of time it takes us to truly master a skill. No-one does
                            something that they detest for 10,000 hours. Be it the Beatles
                            playing music together or Bill Gates learning to program
                            computers. True excellence arises from desire and practice AND
                            not watching the clock as you do it. So – is the person naturally
                            designed to do what you want them to do?

                         2) To fulfil the promise of your mission – every organisation has a
                            calling. A reason to be. Select people on the basis of fit to mission
                            will insure sustainable success. If your organisation is a not-for-
                            profit caring for the homeless, you want someone who cares about
                            that mission. A person who cares about addiction, inequality and
                            has shown this concern through action. Does their life story show
Picking the right           this interest through their actions? What does their life story tell us
people for the team         about their concerns and passions?
and putting them in
the right job is a       3) To fulfil the promise of providing solutions – people love solving
major piece of the          the problems that they are meant to solve. And each of us can
job for a leader using      solve different problems. What would take one person hours of
the Tactical option?        frustration others can solve in minutes. You want excited,
                            passionate answers to the following: What type of challenges do
                            you find most invigorating? Tell me an example of a specific
                            challenge you resolved? What was the experience like? How did you
                            go about seeking the challenge?

                         Features of great People Pickers
                         1) Are success-intuitive – they look at the potential team member
                            and understand their passions and how they can be successful.
                         2) Are placement-aware – see where the person can fit. Which seat
                            on the bus they would be ideal for?
                         3) Are future orientated – can see the future for the new person.
                            How they can help the success of the organisation and be
                            successful.
                         4) Are opportunistic – and know to slot individuals into the team and
                            play to their strengths will help their own success.
                         5) Are Time Conscious – know the door for success is only open for a
                            short time. That the moment to act is now and seizes the moment.



                                                   Summary by Neil Rainey 2012
7) Leading using the Tactical Option – Identifying
                             strengths
                          Common factors of Leaders
                          The authors, as consultants, have a database of the characteristics of
                          thousands of leaders they have captured via a tool called Intentional
                          Difference ™. The tool revealed that the common factors of successful
                          leaders were:

                          1) 85% of what they do, most people can do.
                          2) 10% of what they do, a select group can do or be trained to do.
                          3) 5% of what they do is their unique skill. It is this 5% that
                             differentiates. The Intentional Difference.
Identify the unique
skill in a person
                          Factors making up Intentional Difference
utilise it effectively.
                          1) Talent – the observable patterns of how you think, feel, behave
The self esteem of
                          2) Skills – rehearsed behaviours that combine with skill to give results
the individual will
                          3) Knowledge – awareness of how/when/where to apply your patterns
soar and the team
                          4) Experience – perspective on which decisions give which results
will benefit.
                          5) Passions – linked to our values – the things that energise us
                          6) Outcomes – repeated performance in an activity that gives high
                             performance results

                          Summary: Talent (Skills+Knowledge+Experience+Passions+Outcomes) =
                          Intentional Difference.

                          This difference, even though it is 5%, is the 5% that differentiates great
                          from good. What are the things you do naturally and get better results
                          in an observable and unique way? That is your Intentional Difference.
                          Knowing this helps you exercise your ability in a more powerful way.




                                                    Summary by Neil Rainey 2012
8) Leading Using Tactical Option – Get the most from
                        People
                     Getting the most from People
                     Why do people work? Motivation is basic to getting the most from
                     people and what people are motivated by is sometimes very disguised!
                     By giving the people the opportunity to achieve the 3 things that
                     follow individuals can build their self esteem and satisfaction levels.
                     There 3 work reasons common to us all are:

                     1) Personal Achievement – the work ethic is ingrained in us all as we
                        love to achieve. We admire those who work and accomplish and we
                        get deep satisfaction when we achieve.
Key motivations of
                     2) Financial stability – not everyone is motivated by money, but we
people are
                        are all motivated by the things money can provide. Personal
Achievement,
                        freedom. A life free from deprivation.
Financial security
and Purpose
                     3) Purpose – we want our lives to be linked to a higher purpose. It is
                        why so many people volunteer their time. We are meaning beings.
                        We seek purpose and meaning and like purpose in our work.

                     Looking at the list of what drives people we see that two of these
                     (achievement and purpose) are all about empowerment. Empowerment
                     is best measured by how willing people are willing to give their best.
                     The amount of discretionary effort people put in is always a litmus test
                     as to the amount of trust we invest in them.

                     Team members and real engagement
                     An empowered, engaged team is the best way for a leader to leverage
                     his time and effort. Empowered teams need to comprise of people
                     want value for themselves and also are prepared to give and share
                     value with the team. Specifically team members will want to:

                     1) Get more value from what they receive – we all want to think
                        that by investing in the team we will get something back. That can
                        be money or experience or prestige or high value contacts.

                     2) Give back to the team – when they have experienced value from a
                        team, people are motivated to give back. It may be in the form of
                        extra effort to help the team through a crisis for example.

                     3) Share the value of what they receive – this can be “paying it
                        forward” to the other members of the team. Giving as they
                        themselves are receiving value from the team.

                     Building Engaged Team Members
                     Empowered, engaged team members and teams sounds great, so how
                     do you get to build a team to this level of empowerment? Having
                     individual team members know and grow attachment to their role
                     helps here. There are 5 stages to Role Attachment:

                     1) Unconscious Incompetence – the person is new to the role and
                        excited. This is a time as a leader to notice them when they are
                        doing something right. To help them be seen as a success.

                     2) Conscious Incompetence – the person is now beginning to know
                        what they don’t know and as such motivation wavers. They need


                                               Summary by Neil Rainey 2012
the leader to help them clarify their role and the mission of the
                           team and ensure that their skills and the role fit well.

                        3) Conscious Competence – the person knows what they know and
                           are not yet able to drive to success on their own terms. They may
We all have stages of      see the environment as a limitation. They need the leader to show
gaining competence.        that in spite of hurdles they can succeed.
Knowing the stage a
person is at will       4) Unconscious Competence – the person can outperform others in
guide your                 spite of constraints. Can just do the role without thinking about it.
leadership actions         They need acknowledgement of their role mastery from the leader
                           and an obvious role to move from “employee” in the team to
for their growth.
                           “owner” of the role or process.

                        5) Meta competence – the person can further develop the role and
                           importantly is prepared to mentor others. So the person is giving
                           back to the team, sharing the value of what they know. They need
                           partnership from the leader. Permission to innovate, break a few
                           rules in the common good, develop others.




                                                  Summary by Neil Rainey 2012
9) Leading using the Tactical Option – Getting the
                             most from Teams
                          To get the best from teams
                          So to get the best from a team:

                          1) Create a climate of trust – Listen, respond plainly, back up with
                             deeds and care about the individual. Trust builds when leaders step
                             beyond the role of “boss” and help team members in terms of the
                             person as well as in their team role.

                             In the East Lake case the central team listened to the interests of
                             the various groups closely, particularly the Neighbourhood
                             Association. And then responded in a plain speaking way and
                             backed up words with deeds.

                             It is about building the team understanding them and their
                             strengths and personalities rather than just picking an all star
                             team. This is seen very vividly and publicly in the sports arena
                             where a very expensive superstar player joins a team and decides
                             to play by his own rules. If the coach allows the behaviour the
                             performance of the whole team will suffer. This has been seen in
                             the US in American football, in Europe in soccer. And it is the brave
                             coach who is prepared to “bench” the superstar.

Provoking conflict to     2) Provoke Healthy Conflict – recent studies show successful teams
build team health            are marked by a great sense of humour and high levels of conflict.
may seem                     Conflict provokes deeper thinking of issues, an examination of
counterintuitive. A          one’s own views. Strong leaders deal with conflict by:
team with a solid
basis of trust will use          a. Creating dissonance – creating dissatisfaction with the
conflict                            status quo. Provoking the team out of an impasse.
productively. The                b. Guiding through conflict – keeping the team focussed on
leader’s role is to                 the end goal and keeping the discussion on values.
guide and leverage               c. Leveraging conflict – use the conflict to make the team
the energy.                         stronger. Ensure they learn from the conflict about what
                                    could be better. And understand where the team can build
                                    on the outcomes.

                          3) Inspire Commitment – do this by choosing the right team as
                             described before. And by making the whole picture appealing to
                             the team, not just their individual part. Match the team members
                             to their best contribution to the team, where they can really excel.
                             If you have a great communicator, use them for that role in the
                             team and ensure that you know you are using them for that role
                             consciously. It shows that the leader believes in the team member
                             – a sure way to gain commitment.

                          4) Provide honest, results focussed feedback – give feedback
                             immediately, good or bad. Make it specific with options for
                             improvement. Give it systematically. The intent must be for the
                             good of the person and focussed on the goals of the team.

                          And therefore the way to get the worst from teams!
                          Trust no-one, be afraid of conflict, show no commitment, avoid
                          accountability and above all pay no attention to results!

                          Quitting


                                                   Summary by Neil Rainey 2012
People leave teams when:
                       1) There are more attractive alternative places for them to be.
                       2) When there is a bigger prize elsewhere – in terms of fulfilment.
                       3) The cost of being in the team is too high – in terms of time or
                          energy or stress or work balance.

                       Organisations work a lot on items 1 and 2. Ensuring rewards are there
                       and trying to make the work fulfilling. Often they pay less attention to
                       item 3. An example is having a leader who is just plain difficult to
                       work with. Allow that to continue and team members will leave, citing
                       “better opportunities elsewhere” or other window dressing. The real
                       reason is that the cost to belong to the team just became too high.

                       Using the Intentional Difference ™ (ID) for the Team
                       Again, we each have 5% that is unique to self, a unique differentiator.
                       Using this ID in a team setting will increase the personal productivity
                       of everyone on the team. When used openly and with each team
                       member knowing the ID of the others the relationships in the team
                       strengthen. We value each other more. Finally, with explicit strengths
                       in the open and across the team the team has a greater ability to meet
                       its goals. The team has a clear idea how to combine their talents,
                       skills, knowledge, experience, passions and outcomes.

                       Empower the team
                       It is emerging by now that empowering a team as a leader is about:
Sharing the
knowledge of unique    1) Providing clear direction – providing simple clarity that will
differentiators of        capture hearts and minds.
each team member
within the team will   2) Providing coaching and support and honest feedback – vital to
improve                   building competency, skill and constructive dialogue in the team.
effectiveness.
                       3) Providing an environment of self discovery – this is where the
                          environment allows for challenge, affirmation, positive
                          reinforcement and personal growth.

                       4) Encourage sharing of Unique Value of team members – this helps
                          make the most of the talents and traits of the team members and
                          avoids individuals growing frustrated with each other through lack
                          of understanding. The author’s Intentional Difference™ tool helps
                          in this process by bringing these unique values into the open.

                       Using knowledge of our Talents
                       We can ask questions as a team. It is a great process for assessing your
                       current team in terms of strength points and gaps. The questions help
                       us to understand the unique contribution of each member and helps
                       the team raise its potential and productivity.

                       1) What are our core traits? – As individuals? What are our individual
                          Intentional Differences?
                       2) What % of time do I spend intentionally using my prevailing
                          talents?
                       3) What can I do differently to spend most of my time using those
                          talents?
                       4) How can we improve our productivity as a team?
                       5) What additional talents/skills do we need to bring into the team?
                       What incentives would better leverage our talents? Motivate our team?




                                                 Summary by Neil Rainey 2012
10) Leading using the Transformational Option - Code
                        Culture matters! Know the code
                        Ex Chairman and CEO of Hewlett Packard (HP), Carly Fiorina, found her
                        stellar career at an end at HP when she was very publicly sacked after
                        6 years in the job. What brought her down was a complete lack of
                        understanding about the way things worked at HP. Whether you like it
                        or not, the way things are done in an organisation, its code, has to be
                        worked with. Trampling over the code will not change the code, only
                        the leader. For Fiorina it earned her the title being in the top 20 worst
                        all time CEO’s in US history (Conde Nast Portfolio). HP had a history of
                        engineering excellence, an establishment built on respect of
                        innovation and engineering. Seen by a newcomer this could be
                        perceived as arrogance or outmoded ways of working.

                        The code is the essence of an organisation – its history, values, ways of
                        working, stories and legends. When the code is understood, respected
                        and leveraged it is a force for good and can be used well.

                        Understanding the code
                        Look for the symbols of the organisation. There are 5 main ones:
                        1) Myths – the stories that give flavour and shape to the history of an
                           organisation. Be it the humanism of Bill Hewlett and Dave Packard
                           cooking hotdogs at company picnics or the fun public antics of
                           Richard Branson of Virgin or how the organisation dealt with a
                           defining crisis. These myths form the heart of the organisation.
The Code of an
organisation is made    2) Traditions – these are the sometimes quaint things that the
up of its myths,           company does. It could be that employees have always been given
traditions, heroes,        one discretionary day off per year. Or have an innovation day per
pivotal decisions and      month (as 3 M do) for employees to spend on a project of their
visuals. They are the      choosing. Play with traditions, however trivial, at your peril. One
bedrock of the             company found morale sank measurably when they stopped the
organisation and           free chocolate biscuit tradition in the name of cost reduction.
sometimes seem odd
even quaint to          3) Heroes – all companies have them. It could be, for example, the
outsiders…                 founders or a particularly larger than life CEO.

                        4) Decisions – turning point decisions that seemed reasonably
                           important at the time but have since been seen to be pivotal. An
                           example is Richard Branson’s sale of Virgin Records to fund his
                           airline. At the time the sale brought tears to Branson’s eyes
                           (literally) but in hindsight the record industry was at its peak and
                           subsequent digitisation and download technology meant he sold at
                           the top of the market and it ensured the survival of the Virgin
                           Group. All organisations have pivotal decisions that have been
                           made and are a core component of their code today.

                        5) Visuals – the way the place looks, the logo, the way presentations
                           look. All are expressions of the company’s way of being, its code.

                        Finding out the symbols of an organisation will help you understand its
                        code. Seek first to understand the code.

                        Merging codes
                        Few mergers and acquisitions really produce the gains expected. One
                        core reason is the merge of codes. Slamming together two companies,
                        removing “duplication” and “cost structure improvements” may work



                                                  Summary by Neil Rainey 2012
for accountants but that is as far as it goes. Through time questions
                       emerge like “Who do I work for, company X, company Y or new merged
                       company Z?” Or “What are we all about now?”, “How do we brand
                       ourselves?” Or “Which is our way of working?” Two codes do not
                       become one seamlessly.

                       A core values exercise involving the leadership teams from both
                       companies, now part of the merged entity, will help enormously here.
                       Questions designed to unmask the core values can include:

                       1) Describe your most positive memory of your time working for the
                          company?
                       2) Describe your most meaningful work experience over the course of
                          your career?
                       3) What are the best, but most difficult decisions this company has
                          made in recent years?

                       With this exercise alignment at a values level can be achieved, a major
                       part of creating a new, merged, code.

                       Don’t violate the code
                       HP’s code was entwined with the founders; they had been down to
                       earth, humble, approachable people who promised job security. They
                       believed that employee brainpower was the company’s best asset. This
                       became the HP way. Carly Fiorina started at HP by having an
                       entourage and being remote. Then one year into her tenure she laid
As a leader…Is it      off 15,000 workers. This is not working with a code, it is breaking it.
your job to win or     Put yourself in her shoes, how would you have got what you needed in
are you there to       terms of growth and cost reduction by using the code?
uphold the values of
the organisation?      Code is intuitive not logical – a right brain activity
                       We respect the logical; balance sheets, profit and loss and other facts.
                       The intuitive is also a force and being willing to let the elements of the
                       code guide you is sensible business, a way to get things done.

                       Transformational leaders hire leaders who support the code
                       One very successful leader was asked; “Is it your job to win or to
                       coach?”
                       He answered; “My job is to protect the culture and its values”.

                       The Code is the bedrock of a company, where it draws its strength.
                       Reflect on the elements for a moment and what they are in your
                       organisation – the Myths, traditions, heroes, pivotal decisions and
                       visuals. The code has a reason for being. Hiring to preserve and evolve
                       the code is a duty of a transformational leader.




                                                 Summary by Neil Rainey 2012
11) Leading using the Transformational Option –
                         Adaptive leadership
                       Some of our beliefs about leadership
                       1) Leadership requires positional authority – unless you have the
                          authority you can say what you like but you will achieve nothing.
                       2) Leadership is about the leader – it takes a special someone.
                          Intelligent, savvy, connected, well trained.

                       Alternative beliefs about leadership
                       1) It is a verb not a noun. It is an activity engaged in by both the
                           team and the leader. It is about engaging our values.
                           Transformative leadership is the most challenging form of
                           leadership as it engages team and leader in the activity of pooling
                           competing values to achieve outcomes.

                       2) Positional authority and power are useful. In the end though it
                          doesn’t mean you will get things done. People may salute you and
                          comply. Is compliance is what you need? Formal authority is given
                          by a position. Informal authority is given by those being led. Which
                          would you rather have? In fact it is informal authority that truly
                          matters, that really gets things done. Think of the inspiring leaders
                          in the world – in Burma – Aung San Sui Kyi – the opposition leader in
                          that country. She has been under house arrest for 15 of the past 21
                          years and her informal authority is beginning to create change in
                          that country. Formal authority is not enough. Do you have informal
Informal authority        authority to achieve in your role? If so, who from?
matters. It changes
the politics of        Identifying the transformational Challenge and defining reality
nations and it         When followers believe you truly understand their challenges and you
impacts every day of   are not trying to brush their concerns under the carpet or sugar coat
your life in your      them, they will begin to give you trust and informal authority. This is
organisation.          particularly important in a crisis. If you are a leader who understands
                       and truly commits to help, the team will repay you with trust.

                       Identify all stakeholders
                       Never miss this step. It will hurt you in the long run. Who has skin in
                       the game? Who is likely to gain or lose influence? Who is unsure and
                       therefore threatened?

                       In the East Lake case their key political helper (Shirley Franklin, who
                       later became mayor of Atlanta) was the one who recognised this. She
                       understood the complexity and layers of the problem and who should
                       be in involved. There were problems of education, regulation, poverty
                       and even issues of what the residents wanted their community to be.
                       There were many stakeholders to be managed and identifying them
                       was vital. This was done brilliantly by Shirley Franklin, from the start.

                       Expose competing values
                       Values will clash in Transformational issues. You cannot just paper
                       over the cracks. In business this can be the need for speed to get a
                       product to market vs. the need to get the product perfect from a
                       production and billing and ongoing care sense. This conflict of values –
                       the need to meet the market vs. the need to get it right can drive
                       organisations into warring factions. Even though all parties have the
                       desire for profitable growth. It is the Transformational leader who
                       takes this on and facilitates constructive conflict between groups to
                       gain a greater level of understanding as an outcome.


                                                 Summary by Neil Rainey 2012
Lead change a tolerable speed
                        Change creates distress. We prefer to cling to what we have than to
                        move to the unknown. The change may well be to the long term good
                        but any organisation needs to be taken there at a speed that works for
                        it. Rush things and it becomes easy to throw away the change as a
                        failure and regress to the prior way of doing things. Examples of this
                        are very easy to find. From the sports to business. Think of a rushed
                        through change in your own environment and the consequences of that
                        rushing. Did the organisation revert back to the old way?

                        Leading change at tolerable speed builds trust. People can see the
                        sense, where they are headed. This is not about acquiescing to the
                        status quo or moving at a snail’s pace. It IS about leadership
                        judgement of a speed that will stretch without breaking the
                        organisation.

                        Give work to the team
                        Sustainable leadership is about the people undertaking a leadership
                        role themselves rather than continuously looking to a figurehead to do
                        it for them. Think of a Doctor diagnosing you with a heart problem. He
                        can operate or prescribe a cure AND he will ask you to modify your
                        behaviours. The Doctors work is the swifter. He, as the formal leader,
                        can frame the issues. It is down to you to “lead” a new life. Leadership
                        is undertaken by both the formal leader AND the team. In this
                        approach, put forward by management thinker Ron Heifetz, it is the
                        leader’s role to do adaptive work. Adapting the team to the new way.
Change provokes         This means mobilising followers to undertake the important work
many reactions          themselves.
including fear. A
leader choosing the     8 things to do when using the Transformative Option
transformational        1) Build rapport. Create a safe environment for the team.
option understands      2) Ensure the team can see the tactical, strategic and transformative
the impact of               elements of the challenge they face.
change. And leads       3) Get to the core. Engage in the real issues, not peripheral ones.
change at a rate that   4) Reframe unsolvable problems into problems that can be solved.
stretches the           5) Manage your personal baggage.
organisation without    6) Ensure conflict is only about competing values.
breaking it.            7) Orchestrate the speed of conflict and change to a tolerable speed.
                        8) Mobilise the team to do the transforming work by framing the right
                            questions and providing appropriate resources.

                        When Shirley Franklin became mayor of Atlanta with just over 50% of
                        the vote, she told the truth, highlighted the very real problems of the
                        city and asked for the help of the people and shared sacrifice. With
                        increased taxes and reduced employees to balance the books the city
                        accomplished long overdue changes. At the end of her term she was
                        re-elected, this time with 90% of the vote. Leaders who confront
                        challenges, frame the issues and enlist leadership from the team will
                        truly transform.

                        Transformational questions to ask
                        1) What is the biggest gap between where we are and where we say
                           we are?
                        2) What do people hope will not change in our organisation?
                        3) What negative behaviours are driven by positive values? E.g.
                           building product work arounds in order to meet the speed of the
                           market.
                        4) Who really wields power around here?
                        5) What happens when someone disagrees with their boss?


                                                  Summary by Neil Rainey 2012
6) What do we avoid talking about?
                         7) What hidden alliances exist?

                         Conflict – get used to it and learn how to handle it
                         Transformational leaders will face a lot of conflict. It is what you do
                         with it that matters. In the East Lake case there was a lot of conflict
                         bred from mistrust. It took the project team many meetings with the
                         various interest groups to build trust. The reason they succeeded was
                         that the team know how to handle conflict.

                         Handling Conflict - Red Zone/Blue Zone
                         This is about being aware about when a conflict is personal (red zone)
                         or about competing values (blue zone). The Blue Zone is where we will
                         have success and outcomes from conflict.

                         The table below shows this:

                            Blue Zone                            Red Zone
                            Conflict is professional             Conflict is personal
                            It is about the organisation         It is about me or you
Conflict can be your        Organisational mission rules         Emotions rule, without being
friend. It is the zone                                           acknowledged
where everyone is a         I must protect the team              I must protect myself
stretching. Keep it         Conflict is reframed into            Conflict descends into
just beyond the             discussion                           destructive dialogue
boundary of comfort
and real growth will     We all have our own perspective, our own model of the world. This has
occur.                   been shaped by our upbringing. If we believe the world is basically
                         hostile and we have to fight to survive, we may go quickly into Red
                         Zone tactics. If on the other hand we see the world as one of
                         possibilities, where abundance is possible, we are more likely to tend
                         to Blue Zone results focussed behaviour. If the Blue Zone is the road to
                         results, how can we be a Blue Zone leader? Here are a few major ways.

                         Recognise that pushback (Resistance) is your friend
                         It shows that your Strategy has flaws or is not working. It brings out
                         competing values. Techniques for using pushback:

                         1) Keep clear focus on the big picture. All the time.
                         2) Move towards resistance – explore it; do not run away from it.
                         3) Respect resistors – keep telling the truth and do not head into the
                            Red Zone.
                         4) Join resistance – try to see from the other side and seek to find
                            common values and patterns. Places where you can start to build.
                         5) Know that you are part of the problem – know your heart and
                            mind. Be aware of when you slip into the Red Zone. Be aware of
                            how your behaviours may be creating resistance. Get your ego out
                            of the way!

                         Negotiate conflict in 3-D
                         There are 3 sequential D’s in keeping the conflict in the Blue Zone;
                         1) Dialogue – encourage people to put forward their personal opinions
                            on the issue. Without any interruption. The aim here is gathering
                            information.

                         2) Discussion – allow time from the Dialogue phase. It could be a day
                            or a week. Or a few hours. This phase aims to discover the
                            competing values at play. In the example given earlier it could be



                                                   Summary by Neil Rainey 2012
speed to market vs. support of product. The aim is to flesh out the
                         competing values at play.

                      3) Decision – this is where the group has to determine a way forward.
                         Reference back to the discussion will occur here and conflict may
                         emerge. In the end though the group will come to a better quality
                         and more honest way forward than if the Dialogue and Discussion
                         had not happened.

                      Maintain Boundaries
                      In conflict situations it is very important that you maintain awareness
                      of the difference of yourself and your role. You may be a Credit
                      Controller and in that role you have certain boundaries to maintain. In
                      conflict it is important to understand that any pushback or attack is
                      about the role and not you. To forget your boundaries will draw you
                      very quickly into the Red Zone.

                      Seek to encourage people
Remember the          Even when others may be losing faith. When a person who works for
person who believed   you has things going against them, a strategy that is just not kicking in
in you when others    results yet, there will be plenty of Nay Sayers. After all success has
were walking away?    many friends and failure is an orphan. This is the time to encourage. It
Repay the gift.       may be hard for you, the ongoing negativity may be reflecting on you
                      too, however a little faith at the right time goes a long way. Think
                      back to a person who showed faith in you when no-one else did. You
                      can still remember them and what they did. Seek to encourage.

                      Final Words
                      Great leaders call followers to a greater sense of purpose. As a leader
                      there are 4 types of people you need around you and it helps if you
                      have some of these characteristics yourself;

                      1) People Picker – able to see the aptitudes, ability and passion in
                         people and knows how to turn these traits into productivity.

                      2) Possibility Vendor – can paint the picture of big dreams of
                         unlimited potential and pulls more commitment and effort from
                         people as they want to be part of it.

                      3) Dream Maker – helps you attain the next steps in your goals.
                         Champion your cause by opening doors and helping you take the
                         next steps.

                      4) Leader Leader – bring out leadership in us. By helping us to be
                         courageous in times of conflict and believing in us even when the
                         odds are stacked against us.




                                                Summary by Neil Rainey 2012

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Leadership triangle

  • 1. The Leadership Triangle– by Kevin Ford and Ken Tucker – Published by Intermedia Publishing Group A ripping yarn summarised by Neil Rainey 2012 WWW.Neilsbooks.com
  • 2. INSIDE THIS SUMMARY Summary of the Summary of the Summary Summary 1) 3 types of leadership challenges face us. Challenges can be 1 The East Lake Strategic, Tactical or Transformational. The two initial jobs of a challenge leader are to identify the type of challenge we are facing and 2 The Leadership choose the right leadership option Triangle 3 The Options 2) Strategic Challenges – are about responding to the world outside the organisation. These are challenges you anticipate, not 4 Strategic - Toolkit immediate problems. They are challenges rooted in the future. 5 Strategic - Vision An example could be entrants to your market who have a 6 Tactical - Hiring different business model and represent a future threat. 7 Tactical – identifying strengths 3) Strategic responses - the leader is a synthesiser, bringing together the elements, the personalities, the interest groups. To 8 Tactical – get the do this well means seeking to understand things first, being a most from people vision caster. Questioning, explore options, consider outcomes 9 Tactical – get the and have an open mind before making decisions. Then executing most from teams to achieve the objective. A leader must inspire when using the 10 Transformational - strategic option and be resilient - results may go backward for Code some time before the fruits of the strategy start to kick in. An 11 Transformational – early task is to identify Strategic Inflection points - spot Adaptive Leadership fundamental change in a market. See an inflection point coming and you can seize opportunities. 4) Tactical Challenges are operational or technical problems. Challenges of this nature make up the bulk of the challenges View of the book: faced by an operationally minded leader. They are fixed by work and expertise. By great teams of motivated people. The Leadership Triangle 5) Tactical responses – the leader applies expertise. The leader will is about applied have a knowledge base and skill set to solve these particular and situational leadership. specific problems. Hire right. Get the right people on the bus and The authors are ensure that they are sitting in the right seat on the bus. Identify consultants who observe strengths of each member of the team and play to those and use methods to help strengths. Understand the individuals in the team, what they organisations meet their want to achieve and their purpose. Create a climate of trust – various challenges. In listen, respond plainly, back up with deeds and care about the the book, they individual. Create dissonance - dissatisfaction with the status summarise the quo. Provide clear direction, coaching and support and an methodologies in an environment of self discovery. easy to grasp way. 6) Transformational Challenges relate to values, behaviours and “A powerful read” attitudes. They are not always visible to the naked eye and are Stephen M.R. Covey embedded in our system. These are the ones that you think of as (Author: The Speed of either insoluble or very tough, a product of competing values. Trust) 7) Transformational responses - the leader is a facilitator of “I love this book!” Ken outcomes, identifying the root perspective of challenges and Blanchard (co-Author raising them to the visibility of all involved. Building leadership The One Minute and decision making in the team. Know the history, values, and Manager) ways of working, stories and legends of an organisation and leverage that for the good. Expose competing values. An example Summary by Neil Rainey 2012
  • 3. in business this can be the need for speed to get a product to market vs. the need to get the product perfect from a production and billing and ongoing care sense. This conflict of values – the need to meet the market vs. the need to get it right can drive organisations into warring factions. A transformational leader facilitates constructive conflict between groups to gain a greater level of understanding as an outcome. Sustainable leadership is about helping the team undertake leadership themselves rather than continuously looking to a figurehead to do it for them. Use dialogue and discussion to build to decision. Summary by Neil Rainey 2012
  • 4. 1) The East Lake challenge The Golfing legacy gone bad East Lake is a neighbourhood in Atlanta, home to the golf course that 1930’s golfing legend Bobby Jones regarded as his home course. Jones was the amateur golfer who won the US Golfing championship a number of times and who was responsible for the building of the Augusta championship course, the home of the US Masters tournament. In the 1970’s a housing project called East Lake Meadows had been built in East Lake. By 1995 East Lake had become a place not to be in at night and to hide away if you lived there. The problem with the place was on just about every level you could think of – poverty, drugs, alcohol abuse, and muggings. The police called the place a “war zone”. The crime rate was 18 times the national average and the average age of a grandmother in the area was 32. The employment rate was 14%. 75% of Atlanta’s prison population came from 5 neighbourhoods. East Lake was one of them and the biggest source. Where do you start to turn a community around? This question is equally relevant for a troubled not-for-profit organisation, or a corporation. Where do you start? The challenge is multi layered, complex and overwhelming. In the case of East Lake, most people had just walked away from the problem as it was so East Lake was a “War overwhelming. Until Tom Cousins, a self made man and long time Zone”. A failed Atlanta resident decided to meet the challenge. He had read an article community on every about just how bad the neighbourhood was and went there himself. He level. Yet this complex, dedicated himself to doing something about it. So where did he start? multi layered challenge was tackled and Get resources overcome in a He started by buying the now threadbare golf club in East Lake, which sustainable way. neighboured the East Lake Meadows housing project. He then started twisting the arm of corporations to become corporate members of the The key was to make club. The fee was $250,000 with $200,000 going to a rebuilding fund the competing values of for East Lake Meadows. He convinced the US Professional Golf the many different Association to have an annual PGA tour event at the Golf Club. He was stakeholders clear to setting up the resource base for a complete renewal of the them all and facilitate neighbourhood. His starting point therefore was to rebuild the collaboration. infrastructure with private and public funding. Build the team He had to build a team. He pulled in individual leaders to help the cause – people from corporate life, the legal professions, academia and politics. And he had to build alliances and relationships with the interest parties that existed in the community. The support of all of these would be needed to achieve genuine and lasting change. They would also be needed just to get permission to make the change happen. Alliances had to be built with the Neighbourhood association, the politicians – local and state, the housing authority, the public schools authority, private partners (who provided money) and residents of East Lake Meadows itself. Create a vision and communicate it The reconstruction team had a vision of a model community, full of law abiding, working residents who looked out for one another. A vision that it is possible to break the cycle of poverty, crime and despair. It was one thing to have the vision, it was quite another to Summary by Neil Rainey 2012
  • 5. have the wide group of players involved in the community believe in the vision. Transformational change To move to the end of the story, crime is down 95%. The employment rate has moved from 14% to 71%. Residents on welfare are down from 58% to 5%. The properties have all been refurbished. The Neighbourhood Association works collaboratively with the team – from an adversarial, mistrustful start. A US PGA program to teach participants life affirming values – open to the residents – is in place at the PGA standard East Lakes golf course. In short they “tore down hell and replaced it with Heaven”. East Lake as a whole and East Lake Meadows in particular are no longer war zones. As we look through the Leadership Triangle in this book, we will refer back to this example. This book shall deal with 3 types of leadership. One is transformational leadership and this was certainly used in East Lakes. Summary by Neil Rainey 2012
  • 6. 2) The Leadership Triangle Breaking with habit Because our techniques have worked for us in the past, it does not mean they will work for every problem. Painting a vision and communicating it clearly may be a textbook way to move people forward, but what if it is not enough? In the East Lake case it would definitely not been enough. Other techniques were needed, belief needed to be built, trust restored, relationships repaired and rebuilt. Options There are always options, different ways to lead according to the nature of the challenge. Skilful leaders know the right option to take. This book shows 3 clear options to take – the 3 that make up the Leadership Triangle. There are 3 challenge types that may face us. Strategic, Tactical or Transformational. Two initial jobs of a leader to use the Triangle 1) Identify the type of challenge we are facing - Is it an expert issue just requiring a tactical fix? Or does it relate to external factors requiring a more strategic fix. Or does it involve competing values resulting in incongruent behaviours and attitudes requiring a transformational approach. First identify the type of challenge you 2) Choose the right option based on the nature of the challenge - face, and then this can be a struggle for us because we have our favoured approach. choose the right And it is our favourite approach that can cause us to fail. The option to tackle the Leadership Triangle requires situational leadership and that requires of challenge. us a level of leadership flexibility. The Leadership Triangle Leadership Tactical Triangle Strategic Transformational Summary by Neil Rainey 2012
  • 7. 3) The Leadership Triangle - Options The Strategic Option Strategic Challenges – Key Features 1) Are about responding to the world outside the organisation. 2) Are challenges you anticipate, not immediate problems. 3) Viewing the external environment (beyond your department or organisation) gives you the data to decide how to best adapt to the external opportunities or challenges. 4) Tactical responses will not work for Strategic challenges. 5) Strategic response will utilise your key differentiators tackle the challenge. And will often hinge on your Unique Value Proposition. 6) When you use the Strategic option you are looking at challenges that are rooted in the future. It could be entrants to your market who have a different business model and represent a future threat. If your organisation is facing a serious revenue decline, tactical responses may include immediate layoffs, advertising campaigns to stem the decline. These are often appropriate responses, but in themselves not enough to tackle the strategic issues facing your business. Useful Questions to use for the Strategic option Strategic challenges 1) What services or products should we no longer offer/develop an are where the game exit strategy for? is about to change. 2) What customer needs should we seek to meet that we are not at present? 3) What new products could we introduce? 4) What is our quality maintenance plan in the face of reduced margins? The Leaders role in a strategic challenge is to synthesise – identify patterns and trends, see beyond the current realities to future outcomes. The Tactical Option Tactical Challenges – Key Features 1) These are operational or technical problems. 2) Challenges of this nature make up the bulk of the challenges faced by an operationally minded leader. 3) They are fixed by work and expertise. If you have a broken part, you get the right person to the right place to fix it, quickly. 4) Tactical responses are useful when the problem is a straightforward one fixed with a technical fix. Tactical challenges The temptation is though, to use tactical quick fixes for challenges can be fixed quickly that are deeper rooted, more strategic in nature. In the East Lake case and are the majority many tactical responses had been attempted and failed. One of the of the challenges reasons for the initial distrust of the local community and the faced by neighbourhood association was seeing the people who wanted to operationally minded rejuvenate the place as yet another quick fix "do-gooder" brigade. leaders. Responding tactically to deeper challenges seems a mistake that is easy to avoid. The temptation for a “quick win” lures the organisation leaving the strategic challenge unaddressed. Summary by Neil Rainey 2012
  • 8. The Leaders role in a Tactical Challenge is to apply expertise. The leader will have a knowledge base and skill set to solve these particular and specific problems. The Transformational Option Transformational Challenges Key features: 1) Relate to values, behaviours and attitudes 2) Not always visible to the naked eye/are rooted in our system 3) Are the ones that you think of as either insoluble or very tough 4) Is a product of competing values. In the East Lake case it was the values of profit (the corporations involved), low political risk (the political entities involved) and safety and home (for the residents). The real leadership work is bringing these competing values into Transformational visibility of all through constructive conflict. Done well this takes the challenges require main players in a Transformational Challenge to a higher level of trust facilitative and collaboration. Only through this can behaviours and attitudes leadership. It is change. about framing issues in a way for all to In one example a new minister of a church began running the church in understand then a way that communicated clear vision. This attracted an increased helping the group congregation. Conflict emerged however as the prior minister had been solve the challenge. more of a man of the people, knowing his parishioners and spending time with them. The group that favoured the old style did not want a heartless institution. The new members of the congregation wanted a place with bold vision and run like a well run business. Both competing parties saw their way as the way to carry out the spiritual mandate. The way forward was to surface the challenge and bring the competing values involved to the full view of the whole group. This brought them to a new level of mutual understanding and a new way forward. The Leaders role in a Transformational Challenge is to facilitate. Not making decisions but rather identifying the root perspective of challenges and raise them to the visibility of all involved. From there to facilitate ways forward. Summary by Neil Rainey 2012
  • 9. 4) Leading using the Strategic Option - Toolkit Getting really efficient doesn’t always do it Many leaders believe that Operational excellence will win through. As Stephen Covey says “what if you are leaning your ladder against the wrong wall?” A team can become operationally brilliant at climbing ladders to scale the wall. Strategy tells you if you are climbing the right wall. Blockbuster Video in the US had awesome operations with great distribution channels in the video rental market. They dominated the video rental market for years. They were operationally great, but that did not save them from the internet and download market. Netflix and Red Box came to dominate that market. Blockbuster realised too late that they should join that market. They went bankrupt in 2010. They had tried to tackle a Strategic challenge with Tactical Options. Strategy is a Strategy and Context systemic method of Strategy is a systemic method of differentiation from the competition. differentiation from It is based on a prioritisation of activities, done in ways unique to the the competition. organisation, executed via the practices that exist in the organisation. The context of each organisation is unique. This shows up in the marketplace. Competing organisations cannot recreate the strategies of competitors exactly. There are many examples of this. In fast food; McDonalds could not exactly mimic the strategies of Subway for example. Or vice versa. Each has its own context. Atlanta is a city with residual overtones of the US Civil War in terms of race relations. It is also progressive in culture and politics with a strong leadership tradition in the African-American community. It is a city where the desires of politicians, business people, religious leaders and residents do not converge. This was the context for the East Lake example. The strategy was implemented within that context. Implementing a similar strategy in, for example, New York or Paris would require different strategic elements due to the context of the city the strategy was being implemented within. The Leaders Toolkit for the Strategic Option 1) Playing the right role – In the Strategic option the leader is a synthesiser, bringing together the elements, the personalities, the interest groups. To do this well means seeking to understand things first. Techniques such as the “5 whys” approach can be helpful here. This technique drills down using a series of “why?” questions on a subject. The technique questions assumptions and quickly gets to the root of context. Seeking to understand is an ongoing activity for the Strategic Option, not just something that is done once, at the beginning. 2) Having the right tone – the Strategic Leader has to be a vision caster. A vision that captures both hearts and minds. Followers have to be able to personally feel part of the vision. The vision has to clearly state how it will improve the life of the various stakeholders. 3) Questioning – for the Strategic option the high level question is “What is the objective”. Then execute on a achieving the objective. The question at a more detailed level will be situation specific. For example in a situation of losing market share it might be “What must we do to respond to this change in the Summary by Neil Rainey 2012
  • 10. environment, by differentiating ourselves or moving to an arena of no competition, so that we can fulfil our mission?” 4) Having a clear approach – with the Strategic Option what worked in the past will not work now. We need to research, explore options, consider outcomes and have an open mind before making decisions. This contrasts to the Tactical where we use what we know to solve the problem swiftly. 5) Creating great Interaction – a leader must inspire when using the Strategic Option. That requires tenacity, resilience and building trust. It does not mean that the leader needs to exude charisma. Resiliency matters. A 6) Having resiliency – warrants being highlighted as a pivotal leader choosing the characteristic for the leader seeking the Strategic Option. The strategic option has strategy may initially seem to backfire. Results may go backward to be prepared to for some time before the fruits of the strategy start to kick in. stay the course even Being resilient to nay Sayers and critics is vital. A back down or a U if short term results turn may cripple an otherwise great strategy. It means keeping are awful. going when the odds seem stacked against the team. 7) Distinguishing between want tos and need tos – Andy Grove, CEO of Intel talks of the “Valley of Death” where the cost of change or inaction becomes obvious and denial is no longer an option. Holding on the Want tos at this stage (the things we know) is tempting. It is though when you need to focus on the strategic “need tos”. This is also the innovators dilemma. Innovation gives strategic advantage and our inclination is to cling to the advantage by exploiting the innovation. In fact the only way to keep our advantage is by to continue to break with the past and encourage experimentation. This requires a culture where failure is accepted. 8) Paying attention – to customers – as they insure survival. Also paying attention to the regulatory landscape. Paying attention to complementary businesses – with whom you can grow. And paying attention to competitors – who may be seeing the future before you or conversely be making the wrong strategic choices. By paying attention you are actively listening, you are seeking to understand and inform your vision and strengthen your Strategic Option. 9) Creating unlikely alliances – these may be industry wide alliances and may even involve competitors. In an ultra competitive sector of the building industry in the US the individual companies were losing productivity. They formed an alliance on building codes and techniques and they collaborated on design, disclosure and contracting methodologies. These led to speedier and cheaper building techniques for the industry. 10) Communicating clearly – vision will answer “where are we going?” and the strategy will answer “what we have to do to stay relevant?” It will all be for nothing though if we do not communicate. The communication has to be crystal clear. Summary by Neil Rainey 2012
  • 11. 5) Leading using the Strategic Option - Vision Defining Vision In 1970, Bill Gates saw that every home would have a personal computer. That seems obvious now but did not make sense to many in 1970 – particularly those in the computer industry. Gates saw the industry was at a Strategic Inflection point. Vision requires us to identify that we are at a point of Strategic Inflection and then to understand the opportunities that are available. Identifying Strategic Inflection points Recognising fundamental change in a market and what it means is a key task for a leader taking the Strategic Option. A key piece of that change is where a “strategic inflection point” is reached in an industry or market or environment. It could be, as it is in the newspaper business, digitisation and the implications for your industry. It could be privatisation from Government ownership or deregulation of an industry. See it coming and you can seize opportunities. To help ask two questions: 1) When your competitor is different from the past – if you had a silver bullet to shoot one competitor down, who would it be? If the answer is different from the way it has been for a while, you may be at an inflection point. 2) When people around you start talking gibberish. Responding to different threats and challenges than they have in the past. That is Recognising Strategic a sign that something different is happening. Listen hard. Inflection Points and acting on them will Questions for the Strategic Option and creation of vision give an advantage. Is 1) What should we say yes to and what should we say no to? your industry or 2) What do our customers really value? business at that 3) How are competitors doing things differently than they used to? point? 4) What new competitors have emerged? 5) Who is our target audience, really? 6) Who is our customer and what will it take to have them help us market our products and services? 7) What workarounds have our employees adopted that we should learn from? 8) If we could create a list of areas where we could be number 1, what would that list look like? 9) What legacy will future leaders say that we left them? Further Questions to consider Strategic questions from 20th century thinker Peter Drucker and author Jim Collins are: 1) What business are we in? 2) Who is our customer? 3) What are we most passionate about? 4) What can we do better than anyone else? 5) What drives our economic engine? More on Communication With a crystal clear vision that all members of the organisation understand, ethical or value based decisions become easy. It is the Disney employee who leaves what he is doing to take a picture of two tourists who have no-one to take their snap. Or the employee Summary by Neil Rainey 2012
  • 12. who gives you a credit on an incorrect transaction before you ask. These value based decisions can be achieved by the most junior employee by clearly communicating what matters most. Chick-Fil-A, with 42 years consecutive profit growth (as at 2010) and 1,500 restaurants. For them success is about reinforcing what matters most - the value of children, building the next generation and faith. Not great chicken, profits or return on investment, their view is these are outcomes flowing from the basic message about why they are doing what they are doing and who for. And their employees get it. Zappo’s – an online shoe retailer grew from zero to $1Bn US in turnover in a decade. For them it is not just about shoes, it is all about fanatical customer service. This is drummed in from day 1 on the job. After your first 4 weeks at the company, your training period, you are offered $3,000 to leave! This is to check in that you really do believe in the value of customers. The internet is full of legendary customer service stories generated by this remarkable company resulting from the customer centric culture that they have created. At East Lake the team saw the residents, particularly the children, as the key customers and never stopped referring to them as such. Everyone involved in East Lake had crystal clarity about why they were undertaking the rejuvenation and who it was for. Clarity drives effort. Permission Marketing In an age of distributed media it is no longer the case that we mass market, grab attention and sell. In a connected, social media world, customer savvy is well beyond that. We need to get attention and then having got permission to sell from a customer, deliver to them and deliver brilliantly. So now, once you know who your customers are, get their attention and most importantly keep your promises. Enough talk - taking action There are two action types: 1) Systemic – these are very consequential actions that cause those Strategic actions can who see it to change their actions and behaviours. At IBM CEO Lou be deep seated and Gerstner changed an ailing company from individually run Fiefdoms far reaching such as IBM UK and IBM Spain to global practices such as the Global (systemic) or small Services group. but very visible and a signal of change 2) Symbolic – these are actions which have low real consequence but (symbolic) tell people that things are really changing around here. In New York, Mayor Rudolph Giuliani banned the “squeegee men” who hassled drivers for money for an unwanted window clean of their car. He also clamped down on minor crime in the belief that unchecked minor crime encourages major crime. The disappearance of the highly visible and irritating squeegee men had high symbolic value of change for New Yorkers. It said that something new and very different was happening. Summary by Neil Rainey 2012
  • 13. 6) Leading using the Tactical Option - Hiring “Never hire anyone you will have to manage” Is a provocative statement from Jim Collins (author: Good to Great). It is an aspirational statement. Collins spoke of getting the right people on the bus and ensuring that they were sitting in the right seat on the bus. Microsoft has a “hire smart people who can think” ethos. Google has a “no Bozos” hiring rule. It is about hiring the best team members who perform their job naturally with minimal interference/direction. Great theory – how do you do it? Start by asking a basic question. Why do I bring people onto the team? We rarely think deeply about this. We hire people for 3 reasons: 1) To fulfil the promise of a role with excellence – for example, if you are looking for a person who shows empathy, in a caring profession, do they have examples of that behaviour in their personal life? If you are looking for someone to sell, do they do this naturally in their life? Malcolm Gladwell in “Outliers” described the 10,000 hour rule – the length of time it takes us to truly master a skill. No-one does something that they detest for 10,000 hours. Be it the Beatles playing music together or Bill Gates learning to program computers. True excellence arises from desire and practice AND not watching the clock as you do it. So – is the person naturally designed to do what you want them to do? 2) To fulfil the promise of your mission – every organisation has a calling. A reason to be. Select people on the basis of fit to mission will insure sustainable success. If your organisation is a not-for- profit caring for the homeless, you want someone who cares about that mission. A person who cares about addiction, inequality and has shown this concern through action. Does their life story show Picking the right this interest through their actions? What does their life story tell us people for the team about their concerns and passions? and putting them in the right job is a 3) To fulfil the promise of providing solutions – people love solving major piece of the the problems that they are meant to solve. And each of us can job for a leader using solve different problems. What would take one person hours of the Tactical option? frustration others can solve in minutes. You want excited, passionate answers to the following: What type of challenges do you find most invigorating? Tell me an example of a specific challenge you resolved? What was the experience like? How did you go about seeking the challenge? Features of great People Pickers 1) Are success-intuitive – they look at the potential team member and understand their passions and how they can be successful. 2) Are placement-aware – see where the person can fit. Which seat on the bus they would be ideal for? 3) Are future orientated – can see the future for the new person. How they can help the success of the organisation and be successful. 4) Are opportunistic – and know to slot individuals into the team and play to their strengths will help their own success. 5) Are Time Conscious – know the door for success is only open for a short time. That the moment to act is now and seizes the moment. Summary by Neil Rainey 2012
  • 14. 7) Leading using the Tactical Option – Identifying strengths Common factors of Leaders The authors, as consultants, have a database of the characteristics of thousands of leaders they have captured via a tool called Intentional Difference ™. The tool revealed that the common factors of successful leaders were: 1) 85% of what they do, most people can do. 2) 10% of what they do, a select group can do or be trained to do. 3) 5% of what they do is their unique skill. It is this 5% that differentiates. The Intentional Difference. Identify the unique skill in a person Factors making up Intentional Difference utilise it effectively. 1) Talent – the observable patterns of how you think, feel, behave The self esteem of 2) Skills – rehearsed behaviours that combine with skill to give results the individual will 3) Knowledge – awareness of how/when/where to apply your patterns soar and the team 4) Experience – perspective on which decisions give which results will benefit. 5) Passions – linked to our values – the things that energise us 6) Outcomes – repeated performance in an activity that gives high performance results Summary: Talent (Skills+Knowledge+Experience+Passions+Outcomes) = Intentional Difference. This difference, even though it is 5%, is the 5% that differentiates great from good. What are the things you do naturally and get better results in an observable and unique way? That is your Intentional Difference. Knowing this helps you exercise your ability in a more powerful way. Summary by Neil Rainey 2012
  • 15. 8) Leading Using Tactical Option – Get the most from People Getting the most from People Why do people work? Motivation is basic to getting the most from people and what people are motivated by is sometimes very disguised! By giving the people the opportunity to achieve the 3 things that follow individuals can build their self esteem and satisfaction levels. There 3 work reasons common to us all are: 1) Personal Achievement – the work ethic is ingrained in us all as we love to achieve. We admire those who work and accomplish and we get deep satisfaction when we achieve. Key motivations of 2) Financial stability – not everyone is motivated by money, but we people are are all motivated by the things money can provide. Personal Achievement, freedom. A life free from deprivation. Financial security and Purpose 3) Purpose – we want our lives to be linked to a higher purpose. It is why so many people volunteer their time. We are meaning beings. We seek purpose and meaning and like purpose in our work. Looking at the list of what drives people we see that two of these (achievement and purpose) are all about empowerment. Empowerment is best measured by how willing people are willing to give their best. The amount of discretionary effort people put in is always a litmus test as to the amount of trust we invest in them. Team members and real engagement An empowered, engaged team is the best way for a leader to leverage his time and effort. Empowered teams need to comprise of people want value for themselves and also are prepared to give and share value with the team. Specifically team members will want to: 1) Get more value from what they receive – we all want to think that by investing in the team we will get something back. That can be money or experience or prestige or high value contacts. 2) Give back to the team – when they have experienced value from a team, people are motivated to give back. It may be in the form of extra effort to help the team through a crisis for example. 3) Share the value of what they receive – this can be “paying it forward” to the other members of the team. Giving as they themselves are receiving value from the team. Building Engaged Team Members Empowered, engaged team members and teams sounds great, so how do you get to build a team to this level of empowerment? Having individual team members know and grow attachment to their role helps here. There are 5 stages to Role Attachment: 1) Unconscious Incompetence – the person is new to the role and excited. This is a time as a leader to notice them when they are doing something right. To help them be seen as a success. 2) Conscious Incompetence – the person is now beginning to know what they don’t know and as such motivation wavers. They need Summary by Neil Rainey 2012
  • 16. the leader to help them clarify their role and the mission of the team and ensure that their skills and the role fit well. 3) Conscious Competence – the person knows what they know and are not yet able to drive to success on their own terms. They may We all have stages of see the environment as a limitation. They need the leader to show gaining competence. that in spite of hurdles they can succeed. Knowing the stage a person is at will 4) Unconscious Competence – the person can outperform others in guide your spite of constraints. Can just do the role without thinking about it. leadership actions They need acknowledgement of their role mastery from the leader and an obvious role to move from “employee” in the team to for their growth. “owner” of the role or process. 5) Meta competence – the person can further develop the role and importantly is prepared to mentor others. So the person is giving back to the team, sharing the value of what they know. They need partnership from the leader. Permission to innovate, break a few rules in the common good, develop others. Summary by Neil Rainey 2012
  • 17. 9) Leading using the Tactical Option – Getting the most from Teams To get the best from teams So to get the best from a team: 1) Create a climate of trust – Listen, respond plainly, back up with deeds and care about the individual. Trust builds when leaders step beyond the role of “boss” and help team members in terms of the person as well as in their team role. In the East Lake case the central team listened to the interests of the various groups closely, particularly the Neighbourhood Association. And then responded in a plain speaking way and backed up words with deeds. It is about building the team understanding them and their strengths and personalities rather than just picking an all star team. This is seen very vividly and publicly in the sports arena where a very expensive superstar player joins a team and decides to play by his own rules. If the coach allows the behaviour the performance of the whole team will suffer. This has been seen in the US in American football, in Europe in soccer. And it is the brave coach who is prepared to “bench” the superstar. Provoking conflict to 2) Provoke Healthy Conflict – recent studies show successful teams build team health are marked by a great sense of humour and high levels of conflict. may seem Conflict provokes deeper thinking of issues, an examination of counterintuitive. A one’s own views. Strong leaders deal with conflict by: team with a solid basis of trust will use a. Creating dissonance – creating dissatisfaction with the conflict status quo. Provoking the team out of an impasse. productively. The b. Guiding through conflict – keeping the team focussed on leader’s role is to the end goal and keeping the discussion on values. guide and leverage c. Leveraging conflict – use the conflict to make the team the energy. stronger. Ensure they learn from the conflict about what could be better. And understand where the team can build on the outcomes. 3) Inspire Commitment – do this by choosing the right team as described before. And by making the whole picture appealing to the team, not just their individual part. Match the team members to their best contribution to the team, where they can really excel. If you have a great communicator, use them for that role in the team and ensure that you know you are using them for that role consciously. It shows that the leader believes in the team member – a sure way to gain commitment. 4) Provide honest, results focussed feedback – give feedback immediately, good or bad. Make it specific with options for improvement. Give it systematically. The intent must be for the good of the person and focussed on the goals of the team. And therefore the way to get the worst from teams! Trust no-one, be afraid of conflict, show no commitment, avoid accountability and above all pay no attention to results! Quitting Summary by Neil Rainey 2012
  • 18. People leave teams when: 1) There are more attractive alternative places for them to be. 2) When there is a bigger prize elsewhere – in terms of fulfilment. 3) The cost of being in the team is too high – in terms of time or energy or stress or work balance. Organisations work a lot on items 1 and 2. Ensuring rewards are there and trying to make the work fulfilling. Often they pay less attention to item 3. An example is having a leader who is just plain difficult to work with. Allow that to continue and team members will leave, citing “better opportunities elsewhere” or other window dressing. The real reason is that the cost to belong to the team just became too high. Using the Intentional Difference ™ (ID) for the Team Again, we each have 5% that is unique to self, a unique differentiator. Using this ID in a team setting will increase the personal productivity of everyone on the team. When used openly and with each team member knowing the ID of the others the relationships in the team strengthen. We value each other more. Finally, with explicit strengths in the open and across the team the team has a greater ability to meet its goals. The team has a clear idea how to combine their talents, skills, knowledge, experience, passions and outcomes. Empower the team It is emerging by now that empowering a team as a leader is about: Sharing the knowledge of unique 1) Providing clear direction – providing simple clarity that will differentiators of capture hearts and minds. each team member within the team will 2) Providing coaching and support and honest feedback – vital to improve building competency, skill and constructive dialogue in the team. effectiveness. 3) Providing an environment of self discovery – this is where the environment allows for challenge, affirmation, positive reinforcement and personal growth. 4) Encourage sharing of Unique Value of team members – this helps make the most of the talents and traits of the team members and avoids individuals growing frustrated with each other through lack of understanding. The author’s Intentional Difference™ tool helps in this process by bringing these unique values into the open. Using knowledge of our Talents We can ask questions as a team. It is a great process for assessing your current team in terms of strength points and gaps. The questions help us to understand the unique contribution of each member and helps the team raise its potential and productivity. 1) What are our core traits? – As individuals? What are our individual Intentional Differences? 2) What % of time do I spend intentionally using my prevailing talents? 3) What can I do differently to spend most of my time using those talents? 4) How can we improve our productivity as a team? 5) What additional talents/skills do we need to bring into the team? What incentives would better leverage our talents? Motivate our team? Summary by Neil Rainey 2012
  • 19. 10) Leading using the Transformational Option - Code Culture matters! Know the code Ex Chairman and CEO of Hewlett Packard (HP), Carly Fiorina, found her stellar career at an end at HP when she was very publicly sacked after 6 years in the job. What brought her down was a complete lack of understanding about the way things worked at HP. Whether you like it or not, the way things are done in an organisation, its code, has to be worked with. Trampling over the code will not change the code, only the leader. For Fiorina it earned her the title being in the top 20 worst all time CEO’s in US history (Conde Nast Portfolio). HP had a history of engineering excellence, an establishment built on respect of innovation and engineering. Seen by a newcomer this could be perceived as arrogance or outmoded ways of working. The code is the essence of an organisation – its history, values, ways of working, stories and legends. When the code is understood, respected and leveraged it is a force for good and can be used well. Understanding the code Look for the symbols of the organisation. There are 5 main ones: 1) Myths – the stories that give flavour and shape to the history of an organisation. Be it the humanism of Bill Hewlett and Dave Packard cooking hotdogs at company picnics or the fun public antics of Richard Branson of Virgin or how the organisation dealt with a defining crisis. These myths form the heart of the organisation. The Code of an organisation is made 2) Traditions – these are the sometimes quaint things that the up of its myths, company does. It could be that employees have always been given traditions, heroes, one discretionary day off per year. Or have an innovation day per pivotal decisions and month (as 3 M do) for employees to spend on a project of their visuals. They are the choosing. Play with traditions, however trivial, at your peril. One bedrock of the company found morale sank measurably when they stopped the organisation and free chocolate biscuit tradition in the name of cost reduction. sometimes seem odd even quaint to 3) Heroes – all companies have them. It could be, for example, the outsiders… founders or a particularly larger than life CEO. 4) Decisions – turning point decisions that seemed reasonably important at the time but have since been seen to be pivotal. An example is Richard Branson’s sale of Virgin Records to fund his airline. At the time the sale brought tears to Branson’s eyes (literally) but in hindsight the record industry was at its peak and subsequent digitisation and download technology meant he sold at the top of the market and it ensured the survival of the Virgin Group. All organisations have pivotal decisions that have been made and are a core component of their code today. 5) Visuals – the way the place looks, the logo, the way presentations look. All are expressions of the company’s way of being, its code. Finding out the symbols of an organisation will help you understand its code. Seek first to understand the code. Merging codes Few mergers and acquisitions really produce the gains expected. One core reason is the merge of codes. Slamming together two companies, removing “duplication” and “cost structure improvements” may work Summary by Neil Rainey 2012
  • 20. for accountants but that is as far as it goes. Through time questions emerge like “Who do I work for, company X, company Y or new merged company Z?” Or “What are we all about now?”, “How do we brand ourselves?” Or “Which is our way of working?” Two codes do not become one seamlessly. A core values exercise involving the leadership teams from both companies, now part of the merged entity, will help enormously here. Questions designed to unmask the core values can include: 1) Describe your most positive memory of your time working for the company? 2) Describe your most meaningful work experience over the course of your career? 3) What are the best, but most difficult decisions this company has made in recent years? With this exercise alignment at a values level can be achieved, a major part of creating a new, merged, code. Don’t violate the code HP’s code was entwined with the founders; they had been down to earth, humble, approachable people who promised job security. They believed that employee brainpower was the company’s best asset. This became the HP way. Carly Fiorina started at HP by having an entourage and being remote. Then one year into her tenure she laid As a leader…Is it off 15,000 workers. This is not working with a code, it is breaking it. your job to win or Put yourself in her shoes, how would you have got what you needed in are you there to terms of growth and cost reduction by using the code? uphold the values of the organisation? Code is intuitive not logical – a right brain activity We respect the logical; balance sheets, profit and loss and other facts. The intuitive is also a force and being willing to let the elements of the code guide you is sensible business, a way to get things done. Transformational leaders hire leaders who support the code One very successful leader was asked; “Is it your job to win or to coach?” He answered; “My job is to protect the culture and its values”. The Code is the bedrock of a company, where it draws its strength. Reflect on the elements for a moment and what they are in your organisation – the Myths, traditions, heroes, pivotal decisions and visuals. The code has a reason for being. Hiring to preserve and evolve the code is a duty of a transformational leader. Summary by Neil Rainey 2012
  • 21. 11) Leading using the Transformational Option – Adaptive leadership Some of our beliefs about leadership 1) Leadership requires positional authority – unless you have the authority you can say what you like but you will achieve nothing. 2) Leadership is about the leader – it takes a special someone. Intelligent, savvy, connected, well trained. Alternative beliefs about leadership 1) It is a verb not a noun. It is an activity engaged in by both the team and the leader. It is about engaging our values. Transformative leadership is the most challenging form of leadership as it engages team and leader in the activity of pooling competing values to achieve outcomes. 2) Positional authority and power are useful. In the end though it doesn’t mean you will get things done. People may salute you and comply. Is compliance is what you need? Formal authority is given by a position. Informal authority is given by those being led. Which would you rather have? In fact it is informal authority that truly matters, that really gets things done. Think of the inspiring leaders in the world – in Burma – Aung San Sui Kyi – the opposition leader in that country. She has been under house arrest for 15 of the past 21 years and her informal authority is beginning to create change in that country. Formal authority is not enough. Do you have informal Informal authority authority to achieve in your role? If so, who from? matters. It changes the politics of Identifying the transformational Challenge and defining reality nations and it When followers believe you truly understand their challenges and you impacts every day of are not trying to brush their concerns under the carpet or sugar coat your life in your them, they will begin to give you trust and informal authority. This is organisation. particularly important in a crisis. If you are a leader who understands and truly commits to help, the team will repay you with trust. Identify all stakeholders Never miss this step. It will hurt you in the long run. Who has skin in the game? Who is likely to gain or lose influence? Who is unsure and therefore threatened? In the East Lake case their key political helper (Shirley Franklin, who later became mayor of Atlanta) was the one who recognised this. She understood the complexity and layers of the problem and who should be in involved. There were problems of education, regulation, poverty and even issues of what the residents wanted their community to be. There were many stakeholders to be managed and identifying them was vital. This was done brilliantly by Shirley Franklin, from the start. Expose competing values Values will clash in Transformational issues. You cannot just paper over the cracks. In business this can be the need for speed to get a product to market vs. the need to get the product perfect from a production and billing and ongoing care sense. This conflict of values – the need to meet the market vs. the need to get it right can drive organisations into warring factions. Even though all parties have the desire for profitable growth. It is the Transformational leader who takes this on and facilitates constructive conflict between groups to gain a greater level of understanding as an outcome. Summary by Neil Rainey 2012
  • 22. Lead change a tolerable speed Change creates distress. We prefer to cling to what we have than to move to the unknown. The change may well be to the long term good but any organisation needs to be taken there at a speed that works for it. Rush things and it becomes easy to throw away the change as a failure and regress to the prior way of doing things. Examples of this are very easy to find. From the sports to business. Think of a rushed through change in your own environment and the consequences of that rushing. Did the organisation revert back to the old way? Leading change at tolerable speed builds trust. People can see the sense, where they are headed. This is not about acquiescing to the status quo or moving at a snail’s pace. It IS about leadership judgement of a speed that will stretch without breaking the organisation. Give work to the team Sustainable leadership is about the people undertaking a leadership role themselves rather than continuously looking to a figurehead to do it for them. Think of a Doctor diagnosing you with a heart problem. He can operate or prescribe a cure AND he will ask you to modify your behaviours. The Doctors work is the swifter. He, as the formal leader, can frame the issues. It is down to you to “lead” a new life. Leadership is undertaken by both the formal leader AND the team. In this approach, put forward by management thinker Ron Heifetz, it is the leader’s role to do adaptive work. Adapting the team to the new way. Change provokes This means mobilising followers to undertake the important work many reactions themselves. including fear. A leader choosing the 8 things to do when using the Transformative Option transformational 1) Build rapport. Create a safe environment for the team. option understands 2) Ensure the team can see the tactical, strategic and transformative the impact of elements of the challenge they face. change. And leads 3) Get to the core. Engage in the real issues, not peripheral ones. change at a rate that 4) Reframe unsolvable problems into problems that can be solved. stretches the 5) Manage your personal baggage. organisation without 6) Ensure conflict is only about competing values. breaking it. 7) Orchestrate the speed of conflict and change to a tolerable speed. 8) Mobilise the team to do the transforming work by framing the right questions and providing appropriate resources. When Shirley Franklin became mayor of Atlanta with just over 50% of the vote, she told the truth, highlighted the very real problems of the city and asked for the help of the people and shared sacrifice. With increased taxes and reduced employees to balance the books the city accomplished long overdue changes. At the end of her term she was re-elected, this time with 90% of the vote. Leaders who confront challenges, frame the issues and enlist leadership from the team will truly transform. Transformational questions to ask 1) What is the biggest gap between where we are and where we say we are? 2) What do people hope will not change in our organisation? 3) What negative behaviours are driven by positive values? E.g. building product work arounds in order to meet the speed of the market. 4) Who really wields power around here? 5) What happens when someone disagrees with their boss? Summary by Neil Rainey 2012
  • 23. 6) What do we avoid talking about? 7) What hidden alliances exist? Conflict – get used to it and learn how to handle it Transformational leaders will face a lot of conflict. It is what you do with it that matters. In the East Lake case there was a lot of conflict bred from mistrust. It took the project team many meetings with the various interest groups to build trust. The reason they succeeded was that the team know how to handle conflict. Handling Conflict - Red Zone/Blue Zone This is about being aware about when a conflict is personal (red zone) or about competing values (blue zone). The Blue Zone is where we will have success and outcomes from conflict. The table below shows this: Blue Zone Red Zone Conflict is professional Conflict is personal It is about the organisation It is about me or you Conflict can be your Organisational mission rules Emotions rule, without being friend. It is the zone acknowledged where everyone is a I must protect the team I must protect myself stretching. Keep it Conflict is reframed into Conflict descends into just beyond the discussion destructive dialogue boundary of comfort and real growth will We all have our own perspective, our own model of the world. This has occur. been shaped by our upbringing. If we believe the world is basically hostile and we have to fight to survive, we may go quickly into Red Zone tactics. If on the other hand we see the world as one of possibilities, where abundance is possible, we are more likely to tend to Blue Zone results focussed behaviour. If the Blue Zone is the road to results, how can we be a Blue Zone leader? Here are a few major ways. Recognise that pushback (Resistance) is your friend It shows that your Strategy has flaws or is not working. It brings out competing values. Techniques for using pushback: 1) Keep clear focus on the big picture. All the time. 2) Move towards resistance – explore it; do not run away from it. 3) Respect resistors – keep telling the truth and do not head into the Red Zone. 4) Join resistance – try to see from the other side and seek to find common values and patterns. Places where you can start to build. 5) Know that you are part of the problem – know your heart and mind. Be aware of when you slip into the Red Zone. Be aware of how your behaviours may be creating resistance. Get your ego out of the way! Negotiate conflict in 3-D There are 3 sequential D’s in keeping the conflict in the Blue Zone; 1) Dialogue – encourage people to put forward their personal opinions on the issue. Without any interruption. The aim here is gathering information. 2) Discussion – allow time from the Dialogue phase. It could be a day or a week. Or a few hours. This phase aims to discover the competing values at play. In the example given earlier it could be Summary by Neil Rainey 2012
  • 24. speed to market vs. support of product. The aim is to flesh out the competing values at play. 3) Decision – this is where the group has to determine a way forward. Reference back to the discussion will occur here and conflict may emerge. In the end though the group will come to a better quality and more honest way forward than if the Dialogue and Discussion had not happened. Maintain Boundaries In conflict situations it is very important that you maintain awareness of the difference of yourself and your role. You may be a Credit Controller and in that role you have certain boundaries to maintain. In conflict it is important to understand that any pushback or attack is about the role and not you. To forget your boundaries will draw you very quickly into the Red Zone. Seek to encourage people Remember the Even when others may be losing faith. When a person who works for person who believed you has things going against them, a strategy that is just not kicking in in you when others results yet, there will be plenty of Nay Sayers. After all success has were walking away? many friends and failure is an orphan. This is the time to encourage. It Repay the gift. may be hard for you, the ongoing negativity may be reflecting on you too, however a little faith at the right time goes a long way. Think back to a person who showed faith in you when no-one else did. You can still remember them and what they did. Seek to encourage. Final Words Great leaders call followers to a greater sense of purpose. As a leader there are 4 types of people you need around you and it helps if you have some of these characteristics yourself; 1) People Picker – able to see the aptitudes, ability and passion in people and knows how to turn these traits into productivity. 2) Possibility Vendor – can paint the picture of big dreams of unlimited potential and pulls more commitment and effort from people as they want to be part of it. 3) Dream Maker – helps you attain the next steps in your goals. Champion your cause by opening doors and helping you take the next steps. 4) Leader Leader – bring out leadership in us. By helping us to be courageous in times of conflict and believing in us even when the odds are stacked against us. Summary by Neil Rainey 2012