Leadership books abound. Yet there are very few that put Values first before all those leadership skills. In this book, Harry Krammer explains the Four principles of Value-Based leadership and has shared his personal experiences to validate how these principles do work .
When Leaders engage in Self-reflection ( Principle # 1) followed by Balance, True-Self-confidence and Genuine Humility, then the organization has a much greater chance of leading the Values instead of with Egos. He also shares why positive core business ethics create greater shareholder value. One excellent point he discusses is the difference between what is legal and what is right.
Talent Management and leadership development are far more effective when approaching these two elements from a Values driven position. After all, organizations are all about people united to achieve those big, hairy audacious goals that would be fare ore difficult if not impossible to achieve individually.
Silo thinking is also viewed within the circle of Leadership. When this happens, my turf or silo becomes bigger than the organization’s big vision and this creates poor performance.
Another advantage to leading from a position of high ethics is motivation and team engagement. Teams do not come together naturally, but “ are developed purposefully and with intention”.
The end result from Values to Action is precisely that action or execution and implementation. Failed execution can more often than not be laid at the feet of leadership and not extenuating circumstances.
Values are not bullet points on a Corporate website or motivational phrases on a poster in a lunch room.. Some companies talk a good game and have plaques on the wall stating their Mission & Values, but their day-to-day actions tell a different story.
Leaders should Value Values – Values Create Valuation
1. Some Impressionistic takes from the book of
Harry M.Jansen Kraemer Jr.
“From Values to Action”
by Ramki – ramaddster@gmail.com
2. About the Author
Harry M. Jansen Kraemer Jr. is a professor of
management and strategy at Northwestern University’s
Kellogg School of Management, where he teaches in the
MBA and Executive MBA programs. He is also an
executive partner with Madison Dearborn Partners, one
of the leading private equity firms in the United States. In
this role, he consults with CEOs and other top executives
of companies in Madison Dearborn’s portfolio. Kraemer is
the former chairman and CEO of Baxter International,
Inc., a multibillion- dollar global health care company.
Kraemer is veteran Leader with much to teach about
working ethically. He recounts how he handled various
leadership crisis and faced difficult challenges, including
the traumatic time when a Baxter medical product led to
the deaths of 53 people.
As a recognized expert in values-based leadership, he
has written and spoken widely on the topic and was
featured in Comebacks (Jossey-Bass, 2010), a collection
of leadership profiles.
3. Prelude
Leaders are characterized by their ability to influence
subordinates, peers, and external stakeholders. Values- based
leaders, however, take influence one step further. They use
influence to inspire and motivate others, in an effort to achieve
positive change, and make the world a better place. At Baxter
International, a global health corporation, Harry M. Jansen
Kraemer Jr. practiced values-based leadership for more than
twenty years. While serving as chairman and CEO, he helped
the company make a difference in the world.
In From Values to Action, Kraemer discusses the path to
becoming a values-based leader. He outlines the four principles
that form the foundation of this philosophy, and describes how
they should be applied to create a values-based organization.
4. Leadership is not about the Leader. Leadership is
about the growth and positive change that a
Leader can bring about while working with others.
7. Self Reflection
Self-reflection is essential for determining one’s values, as well
as analyzing choices and decisions.
Kraemer believes that it is not possible to simply imitate the
leadership style of someone else.
Instead, authentic leadership comes from self-understanding.
One of the major benefits of self-reflection is that it enables
people to take time out and evaluate situations from a holistic
perspective.
In this way, leaders can identify certain decision-making patterns.
Self reflection also helps leaders to prioritize decisions & focus
on areas where the organization is most likely to succeed.
There are many different ways to engage in self-reflection, such
as keeping a journal. However, the most important aspect of this
practice is to reserve periods of quiet time where it will be
possible to focus
8. Focusing on the right thing to do makes choices
clearer to see and easier to make
Without Self-reflection, you will find it difficult to
know what matters most- and to stay focused on
it.
10. Balance & Perspective
This is the second principle of valued-based leadership.
When individuals take a balanced viewpoint in the workplace,
they can see issues from many different perspectives.
Leads to making decisions with better understanding & broad
impact.
Gather inputs from team members before making decisions.
Employees sees that their leaders are listening to their views.
Combination of self-reflection and balance elevates
leadership to a new level.
Some leaders are reluctant to involve subordinates in
decision-making because they feel that employees will be
dissatisfied if their recommendations are not adopted.
Leaders are responsible for gathering input, not for gaining
consensus
11. Balance & Perspective
In experience, team members are satisfied as long as they
are given an explanation for why a decision was made.
Although gathering input is important, it should not lead to
slower decision making.
One of the important elements of balance is gathering input
from team members, while still making decisions with a sense
of urgency.
Balance also applies to one’s life outside of work.
Important -it is for leaders to balance their professional and
personal lives, and to model this behavior for their
organizations.
This type of life balance gives people a broader perspective
on issues and often helps with decision making.
12. Balance & Perspective
Important to create a grid which identifies each important part
of each person’s life.
This grid can be used to track how time is spent and to
illustrate where changes may be needed to improve quality of
life and leadership.
Successful achievement of life balance can contribute to
better discipline, focus, consistency, and credibility.
14. True Self-Confidence
Leaders with true self-confidence recognize their strengths &
weaknesses, & accept themselves as they are.
Poor decisions is due to leaders lack self-confidence & are
reluctant to gather input from their teams for support.
Leader’s self-confidence encourages teams to provide
feedback and to challenge others’ opinions, even that of the
leader.
The confidence a leader leads the team members to be the
better part of a team, since they no longer fear criticism or
input from others.
Confident leaders also have the courage to speak up when
they feel that an organizational decision is not the right one.
Further, self-confident leaders have the ability to successfully
recognize areas where they have strengths and weaknesses.
15. True Self-Confidence
When individuals have true self-confidence, they understand
that they must rely on other team players with complementary
abilities who can fill in where the leaders do not excel.
Being comfortable with oneself leads to a greater
understanding of others.
This level of comfort is based on the mastery of self-reflection
and balance.
17. Genuine Humility
The fourth and final principle of values-based leadership is
genuine humility.
Leaders who have adopted this principle value every
employee and treat everyone with respect, regardless of their
title.
Genuine humility keeps leaders in touch with their true
selves.
When people in positions of power become caught up with
their titles, they develop inflated egos.
This separates them from their teams and also makes them a
target of criticism.
A leader with genuine humility relates well with others at all
levels.
18. Genuine Humility
This ultimately motivates the team to help the leader
succeed.
One of the most important ways to maintain genuine humility
is to be surrounded with people who will relate honestly with
a leader, and feel able to communicate without hesitation.
This enables the leader to gather valuable information from
frontline workers when needed.
Supervisors can and should be friends with subordinates, but
everyone must understand that the supervisor’s job is to hold
people accountable.
Genuine humility enables leaders to emphasize that every
person adds value, and employees are not valued only based
on title or amount of power.
19. Regardless of your position in the organization,
with genuine humility, you understand that your
attitude is a gift to others.
You see each team member as important and
recognize each person’s worth.
23. Leading with Values
It is possible for any employee to build a values-based
organization, regardless of their level in the organization.
Key element to accomplish this is to communicate values.
When leaders communicate their values, teams understand
what behaviors are acceptable.
In addition, employees are more likely to take ownership of
their work.
If leaders do not communicate values or simply do not have
them, doubt, cynicism, and distrust are common reactions
amongst employees.
In the absence of values, organizations lack cohesion and
purpose.
Ideally, organizational values are developed “in-house” and
are widely accepted consistently by every employee.
24. Leading with Values
Every Leader should take time to define their values, whether they are an
individual contributor or a senior level executive.
It is recommended that people should document their values and then
reflect on them.
This self-reflection will help identify what causes personal discomfort and
whether a person has an overwhelming need to be liked by others.
Once a leader identifies his or her values, they must be communicated in
a way that holds employees accountable for applying them to their work.
Organizational values can create competitive advantage, and also
prevent reputational damage.
Every company should have a strong code of ethics and each employee
should understand what the code means. A culture based on values and
ethics must begin with the most senior executives.
A leaders’ words and actions communicate what is acceptable and what
is not. It is important to note that employees notice when leaders say one
thing, but act in a different manner.
25. Organizations can’t just hire an outside consultant
to put together a snazzy campaign meant to
engage people. If values appear to be nothing
more than fluff or an attempt to generate good PR
(or, worse yet, completely false compared to what
really goes on in the company), the organization
loses all credibility.
27. Talent Management
First step is to set clear Values in place
Selecting right employees in sync with the Values leads to
Values-based work environment.
Values-based Leaders strive to develop teams that have
diverse backgrounds & progressive ways of thinking.
Team’s strengths should complement the leader’s
weaknesses.
By getting right values-based talent similar to that of the
company will develop the organization with Stronger Values-
based.
All levels of the organization must focus on people
development.
28. Talent Management
Leaders should resist the idea that talent management &
leadership development are yearly or quarterly processes.
Instead, they must happen continuously.
Managers need to provide employees with honest feedback
that identifies strengths and areas for improvement.
Continuous feedback is beneficial as it eliminates surprises
about performance among team members.
Unfortunately, many supervisors find it challenging to deliver
honest feedback.
This attitude must be overcome.
30. A Clear Direction
Fundamental in a values-based organization is that every
employee understands clearly what needs to be done, and how
their work plays a part in the bigger picture.
Often, many people end up doing things that are not consistent
with the company’s goals.
Leaders must focus on simplicity and clarity. This sets a clear
direction.
Breaking down complex goals into smaller pieces of work.
Frontline workers are a vitally important part of every
organizational strategy. As a result, they need to understand
what is going on in the organization & why.
When managers assign work to a subordinate, they must
provide context for that work.
This helps employees feel that they are part of the larger plan,
and it empowers them to perform as individual contributors.
31. A Clear Direction
Setting a clear direction results in four major benefits for a
company:
When employees understand the company’s direction, the
organization is more likely to achieve its goals.
When employees realize that their work is important, they
will feel engaged in their assignments and more motivated
to do good work.
Employees who understand their roles and how those fit
into the larger picture are well positioned to offer feedback
and input to their supervisors.
Even if employees do not have immediate and direct
oversight, they are still able to act on their own because
they understand the overall direction
32. A Clear Direction
A team approach to setting direction is often very effective.
Leaders should be a excellent listener begin by listening
carefully to employees.
Encourage the team for a open dialogue and for their inputs
& views ,that is not burdened by the leader’s opinion on the
subject.
When the environment feels safe, people will be willing to
provide feedback.
Leaders reward team members for challenging a leader’s
views.
When a team approach to setting direction is used, it can
break down organizational barriers and functional silos
34. Effective Communication
Effective communication has three qualities:
Clarity
Simplicity, and
Brevity.
Communication is certainly important, but more
communication does not necessarily result in more effective
communication.
On the other hand, some leaders believe that employees only
need a brief explanation of a task and may simply send an
email or voicemail.
Taking time to communicate gives the team the overall
perspective and increases the likelihood that assignments will
be completed in an excellent way.
Leaders should never be too busy to communicate
35. Effective Communication
If an Challenge is ongoing, leaders may feel that they have
communicated about it enough.
In reality, people should always be reminded of issues that remain
high priority for the organization.
Using a military technique called “back briefing” to guarantee that a
message has been communicated clearly to an employee.
With this approach, the leader gives an assignment to an employee,
then the leader asks the employee how they will approach the task.
This increases the ownership.
Communicating frequently when times are going well, but ceasing
communication when a problem arises – lack of consistency
Telling employees immediately what leaders know about an issue
and how soon information will be available about the unknowns.
When leaders fail to communicate during a crisis, problems are
always perceived to be worse than they really are.
Rule is that his team should know everything that he knows.
36. Effective Communication
Many view communication as what is conveyed verbally, other
contributors to effective communication are trustworthiness,
being a good listener, and relating to every team member.
When leaders are open and honest, they are more likely to be
perceived as credible and trustworthy.
Experts suggest that 90 percent of effective communication is
listening. Yet many people who do not have self-confidence
(one of the key principles of values-based leadership) find
listening difficult.
The higher up the corporate ladder a leader progresses, the
more important it becomes to relate to team members.
Relating to employees is especially important in global
companies, where people come from different cultures and
often have different communication practices.
37. Every person on the team, as well as all
stakeholders, must comprehend what is
expected of them, what the organization is trying
to accomplish, and how they fit into that plan
39. Motivation & Team Engagement
Leader’ passion about achieving a goal and can convey why it is
important to the company, employees will feel motivated and
engaged.
Leaders must connect with each team member and make them
aware that they are valued- Respect for the individuals.
This contributes to a relationship based on trust and respect.
Influence also characterizes good leader-team relationships.
When employees realize that they can influence the leader through
feedback, the leader is more likely to influence employees and steer
them to think holistically about the company.
The effective teams do not have “Sidebar discussions.” This occurs
when employees feel comfortable expressing everything in the
context of a meeting.
When this happens, small groups of team members do not need to
have separate conversations at the water cooler or in the cafeteria
40. Motivation & Team Engagement
Major challenges for leaders is transforming individual
contributors into a team.
This can be accomplished by establishing ground rules, such
as expecting people to abandon functional silos to focus on
what will benefit the larger company.
Leaders must structure discussions as collaborations that lead
to the best possible solution.
Ideally, everyone on the team should have an interest in
supporting the best solution.
The process used to solve problems should be fair and
equitable.
Employees will inevitably have competing priorities. However,
effective leaders persuade team members to see the big
picture and comprehend why assignments are important.
41. Having a great team means holding each other
accountable and refusing to accept anything less
than doing the right thing for the right reasons
43. Implementation & Execution
All of the work that a leader does related to values definition,
leadership development, direction-setting, communication, and
motivation, will come together when it is time to implement an
initiative.
Although many companies look outside for explanations when they
encounter failure, it is that execution often runs into problems
because there is no clear owner.
As a result, failure can usually be attributed to an individual leader
or to organizational factors.
Implementation- leaders must strike a balance between delegation
of work to others and personal involvement.
This requires leaders to maintain some managerial duties.
A person cannot be a good leader unless he or she is also a good
manager.
Leaders should never lose touch with what is happening on a day to
day basis. A good analogy is the coach of a sports team.
44. Implementation & Execution
He or she remains close to the action, but delegates to the team
members who are on the field.
At the same time, the coach maintains enough distance to
determine what changes may need to be made.
There are four management processes that are essential for good
implementation and execution:
Strategic, People, Operations, and Measurement.
These four processes must work together simultaneously
Strategic process.
The strategic process helps teams identify where they are today
and where they want to go in the future.
Part of the strategic process is identifying key issues,
opportunities, & alternatives that may affect the company.
One way to view this process is as a road map that is constantly
updated to take the company in a new and specific direction.
45. Implementation & Execution
People process.
This process ensures that leaders have identified team
members who are well suited to carry out the vision that was
identified in the strategic process.
Human resources is a very important partner, who can help
link the strategic and people processes.
Operations process.
The operations process or operating budget focuses on the
present, while the strategic process is focused on the future.
The goal of the operations process is to identify the steps
needed to attain the company’s vision. Ideally, the operations
process should encompass the first year of the strategic
process. For effective execution to occur, the strategic,
people, and operations processes must be closely aligned.
46. Implementation & Execution
Measurement process.
During execution, teams often overlook measurement. This is a
significant problem since things that are measured and defined
get accomplished in an organization.
On the other hand, companies should not go overboard and
become burdened with unnecessary reports.
The teams carefully consider what they measure, and why they
measure it.
Developing key metrics and reporting on an exception basis.
Under exception based reporting, if a division is within a certain
percentage of its operating goals, then the leader does not need
to review its reports.
Of greatest interest to leaders are groups that are either over-
performing or under-performing.
47. Implementation & Execution
One of the leader’s roles is to ask the right questions, which
will ultimately lead to the best decision.
Good questions can determine whether a strategy is sound,
whether the right employees are on the team, or whether or
not the company’s operations are competitive in the industry.
While there will be large amounts of information and many
distractions, good leaders keep a balanced point of view and
make well-reasoned decisions.
After a decision has been made, the leader must remain
engaged
49. Success to Significance
Once a leader has built a values-based organization, his or her
work is not done.
Companies also have a responsibility to improve society.
When organizations accept this responsibility, they can
enhance their overall significance and credibility in the world.
The success of these organizations is not based solely on their
own metrics, but on metrics developed by the world at large.
Leadership in this context is fairly straightforward when things
are going well.
3 C’s -Change, Controversy, and Crisis are inevitable.
When the 3Cs appear, leadership is essential. To best handle
crisis situations, organizations should prepare well in advance.
An organization’s actions during a crisis effectively expose its
values to the world.
50. Success to Significance
As teams respond to crises, they must be disciplined, focused,
consistent, and credible.
Ability to deal with the 3Cs is due to two factors.
First, the Leader should use self-reflection to analyze situations
and identify the right thing to do.
Second, Leaders should be committed to always do the best
that he can. Leaders are much more effective if they learn to
both accept and initiate change. In reality, many employees and
leaders do not like change and will avoid it at all costs.
This is problematic because generally sudden reactive responses
to change limit leadership.
Proactive responses to change, however, can expand leadership.
The steps that leaders should take correspond with which type of
situation they are dealing with
51. Success to Significance
Change
Since change is a given, leaders should realize that chaos can be
minimized if they reduce the amount of uncertainty that they create.
Leaders should give a high priority to decreasing the amount of
uncertainty associated with change in the organization.
Controversy
When controversy arises, fast and firm action is required. Clear,
frequent communication is even more important than at other times.
Crisis
Every organization faces a crisis at one or more points in its
existence. Because crises have a serious impact, they are highly
emotional.
To respond effectively and move swiftly, organizations must minimize
fear and anger as much as possible.
One anchor during a crisis is to recognize that the organization is
committed to do the right thing and will do the best it can.
52. Success to Significance
When dealing with the 3Cs a leader should also possess a fourth C,
courage.
With courage, leaders remain accountable and responsive, and are not
tempted to cut corners to save time or money.
Values-based leaders should look beyond their organization’s missions
and become involved in social responsibility.
For E.g.- Under Kraemer’s leadership, Baxter International pledged to be
socially invested as a company. This required the company to be
deliberate, setting a clear direction with priorities and a plan.
Social responsibility requires a global perspective.
Organizations must understand the context in a given region before
attacking problems there.
In addition, employees do not need to be senior executives to make a
difference in the community.
Individual contributors and junior employees can champion a cause and
make a significant impact.
53. Harry M. Jansen Kraemer Jr. has discovered that
values- based leadership is a lifelong journey. It
begins with adopting the four principles of values-
based leadership, developing a values-based
organization, and then looking to the world
beyond to become a socially responsible
organization
54.
55. Leadership is the ability and capacity to influence others.
Values-based leadership is where leaders inspire and motivate others to pursue
what matters most.
Values-based leaders are committed to and actively engaged in trying to make the
world a better place within their individual sphere of influence. The ultimate objective
of values-based leadership is to do the right thing by influencing those you interact
with to make choices and decisions which are aligned with your values and those of
your organization.
To become a values-based leader, the journey has three phases
Value-Based Leadership Journey
56. The path to becoming a values-based leader begins and ends
with the four principles of values-based leadership. These
principles are closely interconnected and build on each other.
Together, they form a solid foundation for values-based
leadership to arise.
First Step- Know who you are & What you stand for
57. In a values-based organization, people at every level work
together to achieve a higher purpose.
Values generate the culture of the organization and set the
tone for every interaction which occurs.
The six foundation elements of a values-based organization
are.
Second Step- Learn How to build a Values-Based on organization
58. When you combine the four principles with the six practices of
values-based leadership, you have everything you need to
lead a values-based organization, even in times of change,
controversy and crisis.
Great leaders then shift their focus from success to
significance. Rather than being concerned solely about making
a profit, values-based leaders seek to make a positive impact
on the world. To achieve that, the two essentials are:
Third Step-Lead your organization from success to significance
59. Learning’s for Application
People hunger for authentic Leader who have Core Values & Strong
Ethics.
A “ Values based Leader” is one whom employees look up and emulate.
Self-reflection: This is essential for determining one’s values, as well as
for analyzing choices and decisions. Self-reflection enables people to take
time out and evaluate situations from a holistic perspective.
Balance and perspective: It is also important for leaders to balance their
professional and personal lives, and to model this behavior for their
organizations.
True self-confidence: Leaders with true self-confidence recognize their
strengths and weaknesses, and accept themselves as they are.
Genuine humility: A leader with genuine humility relates well with others
at all levels and this motivates the team to help the leader succeed.
Values-based Leaders set the standards for Ethical organizations.
They meet crisis head on and take accountability
Ethical Leaders and organizations live up to their social responsibilities.
60. To build a values based organization, leaders must establish
values, create a team, set a clear direction, communicate
effectively, motivate their teams, and execute well. Companies
also have a responsibility to improve society. When
organizations accept this responsibility, they can become
significant in the world.