The magnificent seven

Learning from the best

Hay Group’s 2006 survey in partnership with Chief Executive magazine ranks the top companies for leadership and identifies best practice in terms of leadership development that sets them apart from their rivals. Hay Group's Mary Fontaine looks at the seven practices that make a difference.

Across the 1,279 companies that were polled, seven practices combined accounted for 74 per cent of the variance in having the right number and the right kind of leaders. That is a substantial percentage when you consider what is at stake: a better bottom line, more valuable “intangible assets” and a more productive workforce. If you are going to do anything, adopt these practices.

The top three practices have not changed since last year’s survey. They are the same across industries and across regions and they are more than likely to be in the top three next year. If organizations are going to do anything then they should definitely go for the top three. A motivating work climate, a commitment to leadership development and training for teams account for over 60 per cent of what predicts a company is going to have the right number and the right quality of leaders.

Essentially the companies that featured in the Top 20 were those that not only had more leaders but who were also happier with the number and the quality of their leaders.

The top seven practices comprised:

1. Having leaders at all levels who focus on creating a work climate that motivates employees to perform at their best.

2. Ensuring that the company and its senior management make leadership development a top priority.

3. Providing training and coaching to help leadership teams, as well as the individual leaders, work together more effectively.

4. Rotational job assignments for high potentials.

5. External leadership development programs for mid-level managers.

6. Web-based self-study leadership modules for mid-level managers.

7. Executive MBA programs for midlevel managers.


These companies are testament to the research that shows that leadership development relies on direct involvement by the CEO and interventions at team and individual levels.

A motivating work climate

It is no good expecting individuals to make a difference if there is no support for them throughout the organization.

This is particularly the case with regard to the CEO. CEOs of the top companies devote a considerable amount of time and energy making leadership work. They are hands-on people who make sure everyone is on strategy. As CEO of PepsiCo Roger Enrico was fond of saying “I spend 80 per cent of my time trying to get people aligned around something.”

Not that alignment has to mean conformity. Leaders can embrace eccentricity or maverick behavior within a team as long as the energy is all flowing in the same direction. That is what the top CEOs do – they get involved and make sure their leadership program is delivering their company strategy.

What doesn’t work?

The 2006 survey also highlighted some development practices which no longer make the grade. Key to the success of the following activities: job shadowing, web-based self-study and executive MBA for senior managers is the stage at which they occur.

These activities have to take place at the right time in a career to have any real benefit. So sending a senior manager on an MBA course is too late to give him the experience that he should have already – experience that the Top 20 now expect high potential candidates to gain through job rotation for example. Such activities do not add value when they take place too late in a career. In addition, the incidence of outdoor based courses for middle managers increases the further east that you go – as if this is a cultural legacy the East aspires to as the West gives it up.

Great leaders exist in every generation. It is just a question of finding them and when you have found them, keeping hold of them. Given that the writing has been on the wall in terms of the looming shortage of leaders, it is a sobering thought that Hay Group’s joint survey with Human Resources magazine found that only 20 per cent of CEOs are confident that their talent management processes can deliver the executives needed in the future.



However the future need not be so uncertain. Even hiring from outside can be done with more confidence of success given the right strategy.



With the right advice and by looking at what the top 20 companies are doing better, it is possible to produce a supply of first class leaders who will be the next generation of household CEOs.

 

Americas Best Leaders

Where Have All the Leaders Gone?
There may be a dearth of leadership in our national life, but there are still great leaders abroad in the land.

A Vote of No Confidence
More than half of Americans—56 percent—say they're not proud of the country's leaders, according to the second annual poll on leadership conducted for U.S. News and Harvard University's Center for Public Leadership.

The Matter With the Mainstream
Kudos to these men and women who change the world by leading with honor.

How They Were Picked
The honorees were selected by a committee of government, community, and private-sector leaders convened by the center.

Truly Authentic Leadership
If ever there was a time when America needs leaders, it's now.

Teaching the Art of Leading
About the Center for Public Leadership

http://www.usnews.com/usnews/news/leaders/

America’s Best Leaders
By David Gergen

Posted Sunday, October 22, 2006

Where have all the leaders gone? As Americans survey a landscape that seems uncommonly bleak, a new national survey commissioned for this issue of U.S. News found that two thirds of the public believes the nation is in a leadership crisis, while nearly three quarters worries that unless we find better leaders soon, the nation will begin to decline. Some 9 of every 10 people say political leaders today spend too much time attacking rivals, while 8 of 10 believe that corporate leaders are more concerned with making money than with running their companies well.

There are some glimmers of hope, however. As it did last year, U.S. News teamed with the Center for Public Leadership at Harvard's John F. Kennedy School of Government to identify leaders who are making a difference. A national panel sifted through thickets of recommendations and agreed on a small group of men and women who embody the most important traits of leadership. There may be a dearth of leadership in our national life, but as the portraits in this issue attest, there are still great leaders abroad in the land. —David Gergen, cochair, "America's Best Leaders" project

http://www.usnews.com/usnews/news/articles/061022/30opener.htm
A Vote of No Confidence

By Silla Brush

Posted Sunday, October 22, 2006

More than half of Americans—56 percent—say they're not proud of the country's leaders. Two thirds and more say the country is in a leadership crisis. Nearly three quarters say the nation will decline without better leadership.

Those are some pretty scathing numbers, according to the second annual poll on leadership conducted for U.S. News and Harvard University's Center for Public Leadership. And they don't just reflect Americans' disgust with politicians this election season or a knee-jerk reaction to an event. In fact, fewer Americans have confidence in leadership now than they did last year immediately following Hurricane Katrina.

Disillusionment. There is a deep-seated skepticism, a distrust of leaders-whether boardroom chief, university head, or media watchdog. In each of 11 different fields, no more than 40 percent of Americans said they had a great deal of confidence in leaders; the military-despite questions about the war in Iraq-fared best, while the media suffered most. What prompts such apprehension?

Americans seem to have the highest opinion of occupations defined by clear missions, fields in which leaders are charged with completing a specific task-fighting a battle, devising a cure-and cognizant of overstepping their bounds. Andrew Bacevich, an expert on the military at Boston University, says Americans are most fond of the military because they believe it is a highly efficient institution. "If you really scrutinized the military"-something Americans don't do enough, he says, because of national guilt about Vietnam and a lack of media scrutiny-"it's really not all that it's cracked up to be."

Still, where the military fares well, the press, Wall Street, and the presidency are most reviled-perhaps because they lack such clear missions. Frederick Starr, a professor at the School of Advanced International Studies at Johns Hopkins, says those fields are associated with specific personalities and big egos instead of clear missions.

If that's so, then it could explain why Americans have more faith in local governments than in Congress and the executive branch. According to the poll, Americans' confidence in their federal politicians dropped in the past year, but they have the same faith in their local representatives. Eighty-three percent of Americans say corporate leaders are more concerned with the bottom line than with running their companies well, 93 percent say political leaders spend too much time attacking their opponents, and only 39 percent say leaders have high ethical standards. "No-nonsense qualities are revered," says Starr, "and self-indulgent ones despised."

http://www.usnews.com/usnews/news/articles/061022/30poll.htm

The Matter With the Mainstream

By Rosabeth Moss Kanter

Posted Sunday, October 22, 2006

Here we celebrate excellence. We bask in the radiance of America's Best Leaders, learning from their inspiring examples. Kudos to these men and women who change the world by leading with honor. They make us proud.

Thank goodness. Otherwise, we would never get relief from the other news about putative leaders: sordid sex scandals, costly wars waged on false pretenses, backdated stock options, or corporate ethics officers arrested for ethical violations (the HP privacy case). Name a big mainstream institution-Congress, the federal government, major corporations, churches, universities-and it's a good bet that at least one of its top executives has recently entered the Hall of Shame.

Perhaps that's why so many of the candidates for Best Leaders 2006 come from outside the establishment. In our selection committee meetings, we shared enthusiasm for social entrepreneurs who create organizations enabling others to serve society. We praised heroes of wars or natural disasters who offer selfless aid and comfort. We lauded physicians and scientists whose actions improve lives. But we struggled to find candidates for best-leader laurels from the traditional large institutions that dominate America, such as government and business.

We rejected household names, because celebrity is not leadership. We steered away from high positions, because command over resources is also not leadership, unless resources are used courageously to improve the state of the world. Thus, we netted few well-known members of the establishment.

So what's the matter with the mainstream?

Leadership was once equated with big responsibilities for the direction of big institutions. Today that connection is lost and even reversed. To be a large company's CEO, for example, is to be suspected of earning too much, promising too much, hiding too much. Only 18 percent of Americans responding to the Edelman Annual Trust Barometer survey find CEOs or CFOs the most credible source of information about companies; 68 percent place more trust in colleagues, family, and friends.

Think about that one for a moment-your neighbor is a better source of business information than the businesses themselves? Unless you live next door to Warren Buffett, that says a great deal about how strongly Americans feel that some corporate executives have joined other establishment bosses in letting us down. Some feel that Internet gossip is more credible than the mainstream media; others assume political candidates lie to gain power.

Ethical lapse. To give the folks at the top of mainstream institutions their due, it is increasingly hard to run a large organization flawlessly, even for the many excellent, ethical CEOs. In recent years, enterprises have become more complex, the world has generated more shocks and surprises, the public has been more polarized, and the Internet has produced more instant watchdogs and attack dogs. Mistakes and problems are inevitable in complex enterprises. Lapses from efficient, rational, law-abiding, or virtuous behavior are a constant danger. Sometimes this occurs because of flawed people, but more often it's because of ambiguous situations that require the juggling of competing demands (pay raises for workers or price cuts for customers?). We shouldn't expect heads of established organizations to be perfect, but we should expect them to catch and correct their mistakes quickly. When fumbles occur, denial is tempting, especially when people are pressured to promise strong results regardless of circumstances.

Establishments create an appetite for power that can become an addiction. Powerful people who are driven to turn their domains into empires begin to feel that they are above the rules, that what applies to ordinary people does not apply to them (they don't even have to stand in line at airports). They think they can use their power to suppress criticism and force their will on others, whether employees, customers, suppliers, regulators, or the public.

The arrogance of success is well known. Imperial presidents, party leaders, and CEOs have always been with us. A few decades ago, I first encountered members of this class as a newly minted professional applying social science skills to business. One imperial chief, the head of the largest subsidiary of a New York conglomerate, was candid about commanding obedience. He asked me to help "whip his management group into shape," which I thought meant team-building around shared goals and which he thought meant public flogging. Napoleonic in his short stature and enormous ego, he frequently told his staff that "business is the last monarchy." (We soon parted company, and he was later ousted by the corporate parent.) Today there is a preference for nice folks at the top (such as American presidents with whom you could drink a beer), but a down-to-earth manner can mask the continuing abuse of power.

The cult of the heroic leader itself plays a role in elevating people beyond what mere mortals can achieve, creating a power addict's high. In the booming 1990s, as in other growth cycles and winning streaks, success was attributed to individuals at the top; they must be geniuses if we're doing so well, the public thought-even if they were merely riding on momentum. Some lionized chiefs suffered from the Curse of the Magazine Cover, coming to believe their exaggerated press (witness the Enron bunch). Proclaimed heroes at their peak, they fell precipitously because sycophants hadn't looked too closely at the basis for their success. Disappointment was inevitable when flaws (and worse) were uncovered in the post-crash, post-9/11, sober 2000s. (Memo to America's Best Leaders: Watch out.)

Role models. We judge leaders not just by their own behavior or the results achieved on their watch but by the culture they shape and the behavior they elicit from others. Michael Dell built a great company and handed the reins to a successor; did his leadership go up in flames when Dell computers caught on fire? Can we still call Steve Jobs a great leader because he was not personally involved in Apple's stock option problem?

Leaders' responsibilities for institutional values go beyond the walls of a single organization. It's not enough for ethical chiefs to run a flawless enterprise while maintaining silence on the problems of the sector as a whole. A recent Public Agenda Foundation survey found that both business leaders and average citizens have experienced a general decline in values, which they feel has contributed to recent scandals. They were particularly angry that some executives enrich themselves while allowing their companies to decline-and that their peers let them get away with it. Where are the courageous voices of enlightened CEOs who run excellent companies offering their solutions to what the public feels are excesses and abuses? We could ask the same question about Congress or the Pentagon or members of political parties who fear losing power if they expose and deal with mistakes by partisan peers.

Great leaders are purpose-centered, not power-hungry. They work for a cause larger than themselves and grander even than the particular organization they head, as America's Best Leaders 2006 demonstrate. Their legitimacy comes not from the power they wield but from what they do for others. They are humble in the face of the magnitude of their tasks, so they temper the inherent self-confidence of accomplished people with glances at the mirror of accountability held up by those they serve. They reinforce confidence in the institution as a whole-by demonstrating that they are accountable to stakeholders, work with them collaboratively, and empower people inside the organization to speak up, speak the truth, and take initiative.

The courage to challenge conventional wisdom, to confront an establishment with its flaws, can change closed empires into collaborative marketplaces of ideas, with all the accompanying messiness of dissent and all the promise of better days ahead. Challenging the status quo is the beginning of leadership.

We should be wary of establishments. But if that's all we conclude, we would miss the opportunity to turn the mainstream into streams of opportunity. The principled, innovative leaders we celebrate as America's Best show that there is more to leadership than high office. Perhaps those at the top can learn a lesson or two from leaders who emerge from the middle. Their values-based leadership can replace any hunger for power with the deeper satisfaction that comes from a lasting legacy of service to the world.

Rosabeth Moss Kanter is the Arbuckle professor at Harvard Business School, author or coauthor of 16 books, including Confidence: How Winning Streaks & Losing Streaks Begin & End, and a member of the Best Leaders selection committee

http://www.usnews.com/usnews/news/articles/061022/30ender.htm


How They Were Picked

Posted Sunday, October 22, 2006

"America's Best Leaders" is a collaboration between U.S.News & World Report and the Center for Public Leadership at Harvard University's John F. Kennedy School of Government. The honorees were selected by a committee of government, community, and private-sector leaders convened by the center. U.S. News does not have a vote.

The panel accepted nominations from a wide range of sources and compiled research on each one. The committee defined a leader simply as a person who "motivates people to work collaboratively to accomplish great things." It selected 20 winners, including some teams, from a field of more than 200. The panelists rated the nominees from to 1 to 5 based on how well they met the following criteria:

Sets Direction (25%)

By building a shared sense of purpose

By setting out to make a positive social impact

By implementing innovative strategies

Achieves Results (50%)

Of significant breadth or depth

That have a positive social impact

That are sustainable

That exceed expectations

Cultivates a Culture of Growth (25%)

By communicating and embodying positive core values

By inspiring others to lead

The panel decided that some of a nominee's primary accomplishments should have occurred within the past 18 months, and that whenever possible, a nominee should still be in his or her position at the time of selection or have left it within the past six months.

The panel also felt that while a leader's work can be global in scope, it should be based in America and that Americans should make up at least part of the leader's audience.


SELECTION COMMITTEE

Co-chairs

Warren Bennis Distinguished professor of business administration, University of Southern California

David Gergen Director, Center for Public Leadership, Harvard University

MEMBERS

Kenneth Adelman Former U.S. ambassador to the United Nations

John Alexander President, Center for Creative Leadership

Bruce Avolio Director, Gallup Leadership Institute, University of Nebraska

Barbara Barrett President, Triple Creek Guest Ranch

Richard Darman Partner, the Carlyle Group; chairman of the board, AES Corp.

Beth Dozoretz Vice chair, Center for Public Leadership Advisory Board

Kenneth Duberstein Chairman and CEO, the Duberstein Group

Paul Fireman Former CEO, Reebok

Walter Fluker Executive director, the Leadership Center, Morehouse College

Bill George Former chair and CEO, Medtronic; professor of management practice, Harvard Business School

Alan Gleitsman (deceased) President and CEO, the Gleitsman Foundation

Ronald Heifetz King Hussein Bin Talal lecturer in public leadership, John F. Kennedy School of Government

Francis Hesselbein Chair, board of governors, Leader to Leader

Ira Jackson Dean, Peter F. Drucker and Masatoshi Ito Graduate School of Management, Claremont Graduate University

Spencer Johnson Author, Spencer Johnson Partners

Rosabeth Moss Kanter Ernest L. Arbuckle professor of business administration, Harvard Business School

Barbara Kellerman James MacGregor Burns lecturer in public leadership, John F. Kennedy School of Government

Rakesh Khurana Associate professor in business administration, Harvard Business School

Rod Kramer William R. Kimball professor of business administration, Stanford University

Tony Mayo Director, Leadership Initiative, Harvard Business School

Georgette Mosbacher CEO, Borghese Worldwide

Larry Moses President, the Wexner Foundation Betsy Myers Executive director, Center for Public Leadership

Nitin Nohria Richard P. Chapman professor of business administration, Harvard University

Kenneth Ruscio President, Washington and Lee University Donna Shalala President, University of Miami


David Shaw Managing partner, Black Point Group

Bill Shore Founder, Share Our Strength

Tom Tierney Chairman and cofounder, the Bridgespan Group

Michael Useem Director, Center for Leadership and Change Management, Wharton School of Business, University of Pennsylvania

Ruth Wageman Associate professor, Tuck School of Business, Dartmouth College

Maggie Williams Partner, Griffin Williams LLC







Truly Authentic Leadership

By Bill George

Posted Sunday, October 22, 2006
If ever there was a time when America needs leaders, it's now. The litany of problems is all too familiar—Iraq, healthcare, schools, energy, the seemingly endless series of corporate scandals. What's nowhere to be found, however—or almost nowhere—is the leadership needed to fix things. The problem isn't the lack of potential leaders, however, but a wrongheaded notion of what exactly a leader is. This misguided notion of leadership often results in the wrong people attaining critical leadership roles. Search committees and voters alike fall into the trap of choosing leaders for their style rather than their substance, for their image instead of their integrity. Given this way of doing business, why should we be surprised when our leaders come up short?

The only valid test of a leader is his or her ability to bring people together to achieve sustainable results over time. There's no such thing as the "One-Minute Leader" because real leadership requires years of development and hard work.

The good news is that there is no shortage of people with the capacity to lead. There are leaders throughout organizations just waiting for the opportunity. In too many organizations, however, people don't feel empowered to take charge, nor are they rewarded for doing so. Young & Rubicam Brand's CEO, Ann Fudge, says, "All of us have the spark of leadership in us, whether it is in business, in government, or as a nonprofit volunteer. The challenge is to understand ourselves well enough to discover where we can use our leadership gifts to serve others."

Greater purpose. The time is ripe to redefine leadership for the 21st century. The military-manufacturing model of leadership that worked so well 50 years ago doesn't get the best out of people today. People are too well informed to adhere to a set of rules or to simply follow a leader over a distant hill. They want to be inspired by a greater purpose. As Fudge concludes, "We're here for something. Life is about giving and living fully."

What, then, is the 21st-century leader all about? It is being authentic, uniquely yourself, the genuine article. Authentic leaders know who they are. They are "good in their skin," so good they don't feel a need to impress or please others. They not only inspire those around them, they bring people together around a shared purpose and a common set of values and motivate them to create value for everyone involved.

"America's Best Leaders" are the best of the new breed of authentic leaders. Reading about them, you will discern a dramatic shift in caliber and character. These men and women have stepped boldly into the nation's leadership vacuum, with a passion to unite others in addressing the toughest problems we face. From Justice Sandra Day O'Connor's thoughtful guidance of the Supreme Court to Eric Lander's towering leadership in the scientific community to Don Berwick's practical approaches to improving healthcare, these leaders have defied convention to lead in their authentic way. In so doing, they have set a new standard for the rest of us.

Authentic leaders know the "true north" of their moral compass and are prepared to stay the course despite challenges and disappointments. They are more concerned about serving others than they are about their own success or recognition. Which is not to say that authentic leaders are perfect. Every leader has weaknesses, and all are subject to human frailties and mistakes. Yet by acknowledging failings and admitting error, they connect with people and empower them to take risks.

How do we recognize authentic leaders? Usually, they demonstrate these five traits:

1. Pursuing their purpose with passion

2. Practicing solid values

3. Leading with their hearts as well as their heads

4. Establishing connected relationships

5. Demonstrating self-discipline

To be effective leaders of people, authentic leaders must first discover the purpose of their leadership. If they don't, they are at the mercy of their egos and narcissistic impulses. To discover their purpose, authentic leaders have to understand themselves and the passions that animate their life stories.

When Wendy Kopp was a senior at Princeton, she was saddened by the inequities in public education. It wasn't fair, she thought, that so many kids were deprived of a sound education. At a national conference she organized on education reform, an idea suddenly came to her: "Why doesn't America have a national teacher corps of recent college graduates who commit two years to teach in public schools?" Her question inspired her to found Teach For America, the most successful secondary educational program of the past 25 years.

After working a hundred hours a week for five years to build Teach For America, Kopp faced a crisis: declining applications for teaching positions, reductions in funding, and a blistering critique of her efforts in the educational journal Phi Beta Kappan. Stung, Kopp considered resigning or even shutting down her organization. Then she refocused on her purpose and redoubled her efforts. A decade later, Teach For America has grown 10-fold, to 4,400 teachers a year.

The values of authentic leaders are shaped by their personal beliefs and developed through introspection, consultation with others, and years of experience. The test of authentic leaders' values is not what they say but how they act under pressure. If leaders aren't true to the values they profess, the trust is broken and not easily regained.

Coast Guard Commandant Thad Allen knows about staying true to his values under pressure. Allen built the Coast Guard around values, combined with clear decision rules that enable people to take action without having to check with higher levels of command. When Hurricane Katrina hit, officials at all levels of government argued about who was responsible while the Coast Guard simply swung into action, saving the lives of stranded victims.

Passion and compassion. Leading with heart may sound soft, as if authentic leaders can't make tough choices involving pain and loss; it is anything but. Leading with heart means having passion for your work, compassion for the people you serve, empathy for your teammates, and the courage to make tough calls.

There are few better examples of leading with heart than Marilyn Carlson Nelson. When she took over the Carlson companies from her 84-year-old father, Marilyn inherited a demoralized organization suffering from decades of top-down rule. She immediately set about changing things, expressing empathy for her employees and compassion for her customers. The result: a remarkable turnaround with record levels of growth and new heights in employee and customer satisfaction.

The ability to develop enduring relationships is an essential mark of authentic leaders. Today, people demand personal relationships with their leaders before they'll give themselves fully to their jobs. When A. G. Lafley became CEO of Procter & Gamble, he took over an organization in turmoil. A longtime company veteran, Lafley relied heavily on relationships he had built over 25 years to transform P&G's culture. Through his personal engagement with his employees, Lafley has created one of the great corporate success stories of the 21st century. One of my students who worked for P&G shared a story about Lafley's visit to his country. The student was at his desk when Lafley came down the hall. He shook his hand and asked him about his work. Then Lafley looked him in the eye and said, "The work you are doing is vital to the future of P&G ... ." That's the kind of behavior that empowers people to step up and lead, and it exemplifies the way authentic leaders act.

Authentic leaders also know that competing successfully takes a consistently high level of self-discipline. It would be hard to find someone who illustrates the positive effects of self-discipline better than Warren Buffett. For over 40 years, he has followed a basic set of principles that have made him the most successful investor in America. By avoiding debt and high-risk investments and concentrating on value companies and long-term positions, Buffett has been an absolute model of self-discipline-also reflected in his personal life. Buffett lives in the house he bought in 1956 for $31,500, drives an old car, and washes his meals down with a Cherry Coke at Gorat's, his favorite Omaha steakhouse.

The challenges of leadership are so great these days that many ask whether it's worth taking on a leadership role. This issue of "America's Best Leaders" tells the stories of people who said yes. They are, as Teddy Roosevelt said, "in the arena, whose face is marred by dust and sweat and blood ... who knows great enthusiasms, the great devotions ... knows in the end the triumph of high achievement" that can come only by "daring greatly."

No individual achievement can equal the pleasure of leading a group of people to achieve a worthy goal. When you cross the finish line together, there's a deep satisfaction that it was your leadership that made the difference. There's simply nothing that can compare with that.


Bill George, the former chair and CEO of Medtronic, is a professor at Harvard Business School and a member of the Best Leaders selection committee. His new book, True North: Discover Your Authentic Leadership, will be published in March.


Teaching the Art of Leading

Posted Sunday, October 22, 2006

The Center for Public Leadership sponsors courses, publications, and lectures aimed at identifying and teaching a broad range of leadership skills that can be used in a variety of organizations, groups, and communities. Since its founding in 2000, the center has stressed the development of personal as well as technical capabilities.

"Leadership in a time of uncertainty and change is much more than a cognitive exercise," says Betsy Myers, the center's executive director. It's often not enough to learn the tools of business and social science, such as financial and policy analysis. "It's self-understanding and an appreciation for the way their behavior influences others that enable leaders to use the tools to maximum advantage," explains Myers.

CPL offers workshops that help students, scholars, and practitioners explore ways to bring leadership theory and the emotional dimensions of leading to bear on real-world challenges. The center also provides crisis training for public health officials and leadership training for K-12 school superintendents.

Zuckerman Fellows Program: Leadership for the Common Good

The Zuckerman Fellows Program, established through a gift from Mortimer B. Zuckerman, enables students who are already enrolled in, or who have recently graduated from, professional degree programs in medicine, law, or business to pursue an additional degree at one of Harvard's public service schools: the John F. Kennedy School of Government, the Graduate School of Education, or the School of Public Health.

Each year, the Zuckerman Fellowship provides 25 recipients with full tuition plus a $30,000 stipend. Fellows are selected on the basis of their leadership abilities, intellectual and academic achievements, and commitment to public service.

http://www.usnews.com/usnews/news/articles/061022/30pick.b.htm

31 Core Competencies Explained

Major competencies for which employers look, along with some of the behaviors associated with each.


The following is a summarized list of the 31 competencies listed by "cluster" (similar competencies related to a common skill set). Each competency includes a definition and the observable behaviors that may indicate the existence of a competency in a person.


I. Competencies Dealing with People

The Leading Others Cluster


1. Establishing Focus: The ability to develop and communicate goals in support of the business' mission.

Acts to align own unit's goals with the strategic direction of the business.

Ensures that people in the unit understand how their work relates to the business' mission.

Ensures that everyone understands and identifies with the unit's mission.

Ensures that the unit develops goals and a plan to help fulfill the business' mission.

2. Providing Motivational Support: The ability to enhance others' commitment to their work.

Recognizes and rewards people for their achievements.

Acknowledges and thanks people for their contributions.

Expresses pride in the group and encourages people to feel good about their accomplishments.

Finds creative ways to make people's work rewarding.

Signals own commitment to a process by being personally present and involved at key events.

Identifies and promptly tackles morale problems.

Gives talks or presentations that energize groups.


3. Fostering Teamwork: As a team member, the ability and desire to work cooperatively with others on a team; as a team leader, the ability to demonstrate interest, skill, and success in getting groups to learn to work together.

Behaviors for Team Members

Listens and responds constructively to other team members' ideas.

Offers support for others' ideas and proposals.

Is open with other team members about his/her concerns.

Expresses disagreement constructively (e.g., by emphasizing points of agreement, suggesting alternatives that may be acceptable to the group).

Reinforces team members for their contributions.

Gives honest and constructive feedback to other team members.

Provides assistance to others when they need it.

Works for solutions that all team members can support.

Shares his/her expertise with others.

Seeks opportunities to work on teams as a means to develop experience, and knowledge.

Provides assistance, information, or other support to others, to build or maintain relationships with them.

Behaviors for Team Leaders

Provides opportunities for people to learn to work together as a team.

Enlists the active participation of everyone.

Promotes cooperation with other work units.

Ensures that all team members are treated fairly.

Recognizes and encourages the behaviors that contribute to teamwork.


4. Empowering Others: The ability to convey confidence in employees' ability to be successful, especially at challenging new tasks; delegating significant responsibility and authority; allowing employees freedom to decide how they will accomplish their goals and resolve issues.

Gives people latitude to make decisions in their own sphere of work.

Is able to let others make decisions and take charge.

Encourages individuals and groups to set their own goals, consistent with business goals.

Expresses confidence in the ability of others to be successful.

Encourages groups to resolve problems on their own; avoids prescribing a solution.

5. Managing Change: The ability to demonstrate support for innovation and for organizational changes needed to improve the organization's effectiveness; initiating, sponsoring, and implementing organizational change; helping others to successfully manage organizational change.

Employee Behaviors

Personally develops a new method or approach.

Proposes new approaches, methods, or technologies.

Develops better, faster, or less expensive ways to do things.


Manager/Leader Behaviors

Works cooperatively with others to produce innovative solutions.

Takes the lead in setting new business directions, partnerships, policies or procedures.

Seizes opportunities to influence the future direction of an organizational unit or the overall business.

Helps employees to develop a clear understanding of what they will need to do differently, as a result of changes in the organization.

Implements or supports various change management activities (e.g., communications, education, team development, coaching).

Establishes structures and processes to plan and manage the orderly implementation of change.

Helps individuals and groups manage the anxiety associated with significant change.

Facilitates groups or teams through the problem-solving and creative-thinking processes leading to the development and implementation of new approaches, systems, structures, and methods.

6. Developing Others: The ability to delegate responsibility and to work with others and coach them to develop their capabilities.

Provides helpful, behaviorally specific feedback to others.

Shares information, advice, and suggestions to help others to be more successful; provides effective coaching.

Gives people assignments that will help develop their abilities.

Regularly meets with employees to review their development progress.

Recognizes and reinforces people's developmental efforts and improvements.

Expresses confidence in others' ability to be successful.

7. Managing Performance: The ability to take responsibility for one's own or one's employees' performance, by setting clear goals and expectations, tracking progress against the goals, ensuring feedback, and addressing performance problems and issues promptly.

Behaviors for employees

With his/her manager, sets specific, measurable goals that are realistic but challenging, with dates for accomplishment.

With his/her manager, clarifies expectations about what will be done and how.

Enlists his/her manager's support in obtaining the information, resources, and training needed to accomplish his/her work effectively.

Promptly notifies his/her manager about any problems that affect his/her ability to accomplish planned goals.

Seeks performance feedback from his/her manager and from others with whom he/she interacts on the job.

Prepares a personal development plan with specific goals and a timeline for their accomplishment.

Takes significant action to develop skills needed for effectiveness in current or future job.

Behaviors for managers

Ensures that employees have clear goals and responsibilities.

Works with employees to set and communicate performance standards that are specific and measurable.

Supports employees in their efforts to achieve job goals (e.g., by providing resources, removing obstacles, acting as a buffer).

Stays informed about employees' progress and performance through both formal methods (e.g., status reports) and informal methods (e.g., management by walking around).

Provides specific performance feedback, both positive and corrective, as soon as possible after an event.

Deals firmly and promptly with performance problems; lets people know what is expected of them and when.

Communication and Influencing Cluster

8. Attention to Communication: The ability to ensure that information is passed on to others who should be kept informed.

Ensures that others involved in a project or effort are kept informed about developments and plans.

Ensures that important information from his/her management is shared with his/her employees and others as appropriate.

Shares ideas and information with others who might find them useful.

Uses multiple channels or means to communicate important messages (e.g., memos, newsletters, meetings, electronic mail).

Keeps his/her manager informed about progress and problems; avoids surprises.

Ensures that regular, consistent communication takes place.

9. Oral Communication: The ability to express oneself clearly in conversations and interactions with others.

Speaks clearly and can be easily understood.

Tailors the content of speech to the level and experience of the audience.

Uses appropriate grammar and choice of words in oral speech.

Organizes ideas clearly in oral speech.

Expresses ideas concisely in oral speech.

Maintains eye contact when speaking with others.

Summarizes or paraphrases his/her understanding of what others have said to verify understanding and prevent miscommunication.

10. Written Communication: The ability to express oneself clearly in business writing.

Expresses ideas clearly and concisely in writing.

Organizes written ideas clearly and signals the organization to the reader (e.g., through an introductory paragraph or through use of headings).

Tailors written communications to effectively reach an audience.

Uses graphics and other aids to clarify complex or technical information.

Spells correctly.

Writes using concrete, specific language.

Uses punctuation correctly.

Writes grammatically.

Uses an appropriate business writing style.

11. Persuasive Communication: The ability to plan and deliver oral and written communications that make an impact and persuade their intended audiences.

Identifies and presents information or data that will have a strong effect on others.

Selects language and examples tailored to the level and experience of the audience.

Selects stories, analogies, or examples to illustrate a point.

Creates graphics, overheads, or slides that display information clearly and with high impact.

Presents several different arguments in support of a position.

12. Interpersonal Awareness: The ability to notice, interpret, and anticipate others' concerns and feelings, and to communicate this awareness empathetically to others.

Understands the interests and important concerns of others.

Notices and accurately interprets what others are feeling, based on their choice of words, tone of voice, expressions, and other nonverbal behavior.

Anticipates how others will react to a situation.

Listens attentively to people's ideas and concerns.

Understands both the strengths and weaknesses of others.

Understands the unspoken meaning in a situation.

Says or does things to address others' concerns.

Finds non-threatening ways to approach others about sensitive issues.

Makes others feel comfortable by responding in ways that convey interest in what they have to say.

13. Influencing Others: The ability to gain others' support for ideas, proposals, projects, and solutions.

Presents arguments that address others' most important concerns and issues and looks for win-win solutions.

Involves others in a process or decision to ensure their support.

Offers trade-offs or exchanges to gain commitment.

Identifies and proposes solutions that benefit all parties involved in a situation.

Enlists experts or third parties to influence others.

Develops other indirect strategies to influence others.

Knows when to escalate critical issues to own or others' management, if own efforts to enlist support have not succeeded.

Structures situations (e.g., the setting, persons present, sequence of events) to create a desired impact and to maximize the chances of a favorable outcome.

Works to make a particular impression on others.

Identifies and targets influence efforts at the real decision makers and those who can influence them.

Seeks out and builds relationships with others who can provide information, intelligence, career support, potential business, and other forms of help.

Takes a personal interest in others (e.g., by asking about their concerns, interests, family, friends, hobbies) to develop relationships.

Accurately anticipates the implications of events or decisions for various stakeholders in the organization and plans strategy accordingly.

14. Building Collaborative Relationships: The ability to develop, maintain, and strengthen partnerships with others inside or outside the organization who can provide information, assistance, and support.

Asks about the other person's personal experiences, interests, and family.

Asks questions to identify shared interest, experiences, or other common ground.

Shows an interest in what others have to say; acknowledges their perspectives and ideas.

Recognizes the business concerns and perspectives of others.

Expresses gratitude and appreciation to others who have provided information, assistance, or support.

Takes time to get to know coworkers, to build rapport and establish a common bond.

Tries to build relationships with people whose assistance, cooperation, and support may be needed.

Provides assistance, information, and support to others to build a basis for future reciprocity.

15. Customer Orientation:
The ability to demonstrate concern for satisfying one's external and/or internal customers.

Quickly and effectively solves customer problems.

Talks to customers (internal or external) to find out what they want and how satisfied they are with what they are getting.

Lets customers know he/she is willing to work with them to meet their needs.

Finds ways to measure and track customer satisfaction.

Presents a cheerful, positive manner with customers.

II. Compentencies Dealing with Business


The Preventing and Solving Problems Cluster

16. Diagnostic Information Gathering: The ability to identify the information needed to clarify a situation, seek that information from appropriate sources, and use skillful questioning to draw out the information, when others are reluctant to disclose it

Identifies the specific information needed to clarify a situation or to make a decision.

Gets more complete and accurate information by checking multiple sources.

Probes skillfully to get at the facts, when others are reluctant to provide full, detailed information.

Routinely walks around to see how people are doing and to hear about any problems they are encountering.

Questions others to assess whether they have thought through a plan of action.

Questions others to assess their confidence in solving a problem or tackling a situation.

Asks questions to clarify a situation.

Seeks the perspective of everyone involved in a situation.

Seeks out knowledgeable people to obtain information or clarify a problem.

17. Analytical Thinking: The ability to tackle a problem by using a logical, systematic, sequential approach.

Makes a systematic comparison of two or more alternatives.

Notices discrepancies and inconsistencies in available information.

Identifies a set of features, parameters, or considerations to take into account, in analyzing a situation or making a decision.

Approaches a complex task or problem by breaking it down into its component parts and considering each part in detail.

Weighs the costs, benefits, risks, and chances for success, in making a decision.

Identifies many possible causes for a problem.

Carefully weighs the priority of things to be done.

18. Forward Thinking: The ability to anticipate the implications and consequences of situations and take appropriate action to be prepared for possible contingencies.

Anticipates possible problems and develops contingency plans in advance.

Notices trends in the industry or marketplace and develops plans to prepare for opportunities or problems.

Anticipates the consequences of situations and plans accordingly.

Anticipates how individuals and groups will react to situations and information and plans accordingly.

19. Conceptual Thinking: The ability to find effective solutions by taking a holistic, abstract, or theoretical perspective.

Notices similarities between different and apparently unrelated situations.

Quickly identifies the central or underlying issues in a complex situation.

Creates a graphic diagram showing a systems view of a situation.

Develops analogies or metaphors to explain a situation.

Applies a theoretical framework to understand a specific situation.


20. Strategic Thinking: The ability to analyze the organization's competitive position by considering market and industry trends, existing and potential customers (internal and external), and strengths and weaknesses as compared to competitors.

Understands the organization's strengths and weaknesses as compared to competitors.

Understands industry and market trends affecting the organization's competitiveness.

Has an in-depth understanding of competitive products and services within the marketplace.

Develops and proposes a long-term (3-5 year) strategy for the organization based on an analysis of the industry and marketplace and the organization's current and potential capabilities as compared to competitors.

21. Technical Expertise: The ability to demonstrate depth of knowledge and skill in a technical
area.

Effectively applies technical knowledge to solve a range of problems.

Possesses an in-depth knowledge and skill in a technical area.

Develops technical solutions to new or highly complex problems that cannot be solved using existing methods or approaches.

Is sought out as an expert to provide advice or solutions in his/her technical area.

Keeps informed about cutting-edge technology in his/her technical area.


The Achieving Results Cluster

22. Initiative: Identifying what needs to be done and doing it before being asked or before the situation requires it.

Identifying what needs to be done and takes action before being asked or the situation requires it.

Does more than what is normally required in a situation.

Seeks out others involved in a situation to learn their perspectives.

Takes independent action to change the direction of events.

23. Entrepreneurial Orientation: The ability to look for and seize profitable business opportunities; willingness to take calculated risks to achieve business goals.

Notices and seizes profitable business opportunities.

Stays abreast of business, industry, and market information that may reveal business opportunities.

Demonstrates willingness to take calculated risks to achieve business goals.

Proposes innovative business deals to potential customers, suppliers, and business partners.

Encourages and supports entrepreneurial behavior in others.

24. Fostering Innovation:
The ability to develop, sponsor, or support the introduction of new and improved method, products, procedures, or technologies.

Personally develops a new product or service.

Personally develops a new method or approach.

Sponsors the development of new products, services, methods, or procedures.

Proposes new approaches, methods, or technologies.

Develops better, faster, or less expensive ways to do things.

Works cooperatively with others to produce innovative solutions.

25. Results Orientation: The ability to focus on the desired result of one's own or one's unit's work, setting challenging goals, focusing effort on the goals, and meeting or exceeding them.

Develops challenging but achievable goals.

Develops clear goals for meetings and projects.

Maintains commitment to goals in the face of obstacles and frustrations.

Finds or creates ways to measure performance against goals.

Exerts unusual effort over time to achieve a goal.

Has a strong sense of urgency about solving problems and getting work done.


26. Thoroughness: Ensuring that one's own and others' work and information are complete and accurate; carefully preparing for meetings and presentations; following up with others to ensure that agreements and commitments have been fulfilled.

Sets up procedures to ensure high quality of work (e.g., review meetings).

Monitors the quality of work.

Verifies information.

Checks the accuracy of own and others' work.

Develops and uses systems to organize and keep track of information or work progress.

Carefully prepares for meetings and presentations.

Organizes information or materials for others.

Carefully reviews and checks the accuracy of information in work reports (e.g., production, sales, financial performance) provided by management, management information systems, or other individuals and groups.

27. Decisiveness: The ability to make difficult decisions in a timely manner.

Is willing to make decisions in difficult or ambiguous situations, when time is critical.

Takes charge of a group when it is necessary to facilitate change, overcome an impasse, face issues, or ensure that decisions are made.

Makes tough decisions (e.g., closing a facility, reducing staff, accepting or rejecting a high-stakes deal).


III. Self-Management Competencies

28. Self Confidence: Faith in one's own ideas and capability to be successful; willingness to take an independent position in the face of opposition.

Is confident of own ability to accomplish goals.

Presents self crisply and impressively.

Is willing to speak up to the right person or group at the right time, when he/she disagrees with a decision or strategy.

Approaches challenging tasks with a "can-do" attitude.


29. Stress Management: The ability to keep functioning effectively when under pressure and maintain self control in the face of hostility or provocation.


Remains calm under stress.


Can effectively handle several problems or tasks at once.

Controls his/her response when criticized, attacked or provoked.

Maintains a sense of humor under difficult circumstances.

Manages own behavior to prevent or reduce feelings of stress.


30. Personal Credibility: Demonstrated concern that one be perceived as responsible, reliable, and trustworthy.

Does what he/she commits to doing.

Respects the confidentiality of information or concerns shared by others.

Is honest and forthright with people.

Carries his/her fair share of the workload.

Takes responsibility for own mistakes; does not blame others.

Conveys a command of the relevant facts and information.


31. Flexibility: Openness to different and new ways of doing things; willingness to modify one's preferred way of doing things.

Is able to see the merits of perspectives other than his/her own.

Demonstrates openness to new organizational structures, procedures, and technology.

Switches to a different strategy when an initially selected one is unsuccessful.

Demonstrates willingness to modify a strongly held position in the face of contrary evidence. Reprinted with permission from "The Value-Added Employee," by Edward J. Cripe and Richard S. Mansfield, Copyright 2002 by Butterworth-Heinermann.

 

From Management Craft

January 24, 2007
No News is No News

I was talking to a leader yesterday and he said this, "no news is no news." He is so right and this points to a common managerial weakness - allowing ourselves to get lazy, complacent, or to let our fears keep us from getting out of our chairs to find out what we need to know about what's going on in the business.

No news is no news - when managers have no news, how can they possibly do their jobs? The problem is that I have known many managers who operate on auto pilot and have the perspective that no news is good news. Wrong.

Sure - we don't want to micromanage. You know how I feel about micromanagement and an overuse of control to mask an inability to inspire excellence.

Managers must know what's going on in the business.

I can't even count the number of times that people have told me that their managers are clueless as to what's going on. What do you think the odds are that your employees say that about you?

The good news: This is an easy problem to solve.

1. Have real - candid and deep - conversations about the business on a regular basis.
2. Encourage your employees, peers, and managers to come talk with you.
3. Show your appreciation for constructive and candid conversation and input - the good, the bad, and the ugly.
4. Be analytical - seek and interpret information. If this is not a natural strength, ask for coaching and develop this skill.

I once knew a manager I will call Debbie. She was smart and she clueless about what was going on. Why? Because she put up barriers to communication. She was not accessible. She closed her office door for most of the day. She was always working on high profile planning stuff that she had to share with the president - problem was that she was plannign in an information vacuum. She did not welcome ad hoc visitors. She took several days to get to email and did not respond to all of them. She acted so busy and yet I would say that she was a slacker because she did not fulfill one of her most important duties as a manager - communication and connection. Managers ought to be like organizational glue. She was not like glue.

She was my manager for a time, by the way. She was the VP of HR and I was the director of training and OD. I could not fathom how she defined success. She was an HR director who did not engage with people unless absolutely necessary. Why become a surgeon if you can't stand the sight of blood?

No news is no news. Make sure today that you are not dealing with no news.

Here's a post from my pal David Anderson that relates to the power of honest information when dealing with projects called Why Red Status is my Friend. Could not agree more. Here's a snippet:

It seems that it isn't culturally acceptable to report bad news and experienced PM's have made a career out of not doing so. Hence, the politically astute invitation for me to do something about it before the red status gets reported. So my response was unusual. What the PM's fail to realize is that I see red status as my friend.

Knowledge is power - the power to choose, the power to react, the power to influence, the power to fix.
Information opens doors and facilitates better decisions.

OK, I know, you get this intellectually. But I want to challenge you. Do you have the communication practices, habits, and processes in place to ensure that you know what you need to know?

Source: http://managementcraft.typepad.com/management_craft/

NINE THINGS MORE IMPORTANT THAN CAPITAL

 by Jim Rohn


When starting any enterprise or business, whether it is full-time or part-time, we all know the value of having plenty of capital (money). But I bet we both know or at least have heard of people who started with no capital who went on to make fortunes. How?, you may ask.

Well, I believe there are actually some things that are more valuable than capital that can lead to your entrepreneurial success. Let me give you the list.

1. Time.

Time is more valuable than capital. The time you set aside not to be wasted, not to be given away. Time you set aside to be invested in an enterprise that brings value to the marketplace with the hope of making a profit. Now we have capital time.

How valuable is time? Time properly invested is worth a fortune. Time wasted can be devastation. Time invested can perform miracles, so you invest your time.

2. Desperation.

I have a friend Lydia, whose first major investment in her new enterprise was desperation. She said, "My kids are hungry, I gotta make this work. If this doesn't work, what will I do?" So she invested $1 in her enterprise selling a product she believed in. The $1 was to buy a few fliers so she could make a sale at retail, collect the money and then buy the product wholesale to deliver back to the customer.

My friend Bill Bailey went to Chicago as a teenager after he got out of high school. And the first job he got was as a night janitor. Someone said, "Bill, why would you settle for night janitor?" He said, "Malnutrition." You work at whatever you can possibly get when you get hungry. You go to work somewhere -- night janitor, it doesn't matter where it is. Years later, now Bill is a recipient of the Horatio Alger award, rich and powerful and one of the great examples of lifestyle that I know. But, his first job – night janitor. Desperation can be a powerful incentive. When you say - I must.

3. Determination.

Determination says I will. First Lydia said, "I must find a customer." Desperation. Second, she said, "I will find someone before this first day is over." Sure enough, she found someone. She said, "If it works once, it will work again." But then the next person said, "No." Now what must you invest?

4. Courage.

Courage is more valuable than capital. If you've only got $1 and a lot of courage, I'm telling you, you've got a good future ahead of you. Courage in spite of the circumstances. Humans can do the most incredible things no matter what happens. Haven't we heard the stories? There are some recent ones from Kosovo that are some of the most classic, unbelievable stories of being in the depths of hell and finally making it out. It's humans. You can't sell humans short. Courage in spite of, not because of, but in spite of. Now once Lydia has made 3 or 4 sales and gotten going, here's what now takes over.

5. Ambition.

"Wow! If I can sell 3, I can sell 33. If I can sell 33, I can sell 103." Wow. Lydia is now dazzled by her own dreams of the future.

6. Faith.

Now she begins to believe she's got a good product. This is probably a good company. And she then starts to believe in herself. Lydia, single mother, 2 kids, no job. "My gosh, I'm going to pull it off!" Her self-esteem starts to soar. These are investments that are unmatched. Money can't touch it. What if you had a million dollars and no faith? You'd be poor. You wouldn't be rich. Now here is the next one, the reason why she's a millionaire today.

7. Ingenuity.

Putting your brains to work. Probably up until now, you've put about 1/10 of your brainpower to work. What if you employed the other 9/10? You can't believe what can happen. Humans can come up with the most intriguing things to do. Ingenuity. What's ingenuity worth? A fortune. It is more valuable than money. All you need is a $1 and plenty of ingenuity. Figuring out a way to make it work, make it work, make it work.

8. Heart and Soul.

What is a substitute for heart and soul? It's not money. Money can't buy heart and soul. Heart and soul is more valuable than a million dollars. A million dollars without heart and soul, you have no life. You are ineffective. But, heart and soul is like the unseen magic that moves people, moves people to buy, moves people to make decisions, moves people to act, moves people to respond.

9. Personality.

You've just got to spruce up and sharpen up your own personality. You've got plenty of personality. Just get it developed to where it is effective every day, it's effective no matter who you talk to - whether it is a child or whether it is a business person - whether it is a rich person or a poor person. A unique personality that is at home anywhere.

My mentor Bill Bailey taught me, "You've got to learn to be just as comfortable, Mr. Rohn, whether it is in a little shack in Kentucky having a beer and watching the fights with Winfred, my old friend or in a Georgian mansion in Washington, DC as the Senator's guest." Move with ease whether it is with the rich or whether it is with the poor.

And it makes no difference to you who is rich or who is poor. A chance to have a unique relationship with whomever. The kind of personality that's comfortable. The kind of personality that's not bent out of shape.

And lastly, let's not forget charisma and sophistication. Charisma with a touch of humility. This entire list is more valuable than money. With one dollar and the list I just gave you, the world is yours. It belongs to you, whatever piece of it you desire whatever development you wish for your life. I've given you the secret. Capital. The kind of capital that is more valuable than money and that can secure your future and fortune. Remember that you lack not the resources.

 

Customer Loyalty: Dos and Don'ts

Advice from the experts on cultivating customers who are advocates for your business

By Jeffrey Gangemi

Creating and nurturing loyal customers has always been a top priority for marketing teams within companies large and small. But today's most innovative firms are looking for ways to go beyond the frequent buyer program and transform the loyal customer into an essential extension of the company's sales, marketing, and product development teams. The question is how. In this tip sheet, five experts in facilitating customer loyalty offer dos and don'ts for small businesses attempting to develop a customer loyalty strategy and get it working.

Robert Schieffer, clinical associate professor of marketing at the Kellogg School of Management:

Do invite customers to participate in the new product development process. By that, I mean put them on advisory panels, constantly test new ideas against them to see whether they meet their needs, and get their input before launching a product.

Don't assume the customers are going to ask for the ability to participate in a company's activities.

Ben McConnell, co-author of Creating Customer Evangelists: How Loyal Customers Become a Volunteer Sales Force

Do find ways to bring customers together regularly, whether it's through a quarterly or yearly conference, party, or meeting. The ones who'll show up are probably the evangelists, and they love to meet other evangelists. Meeting one another under your party banner will help reinforce their feelings of emotional attachment. Plus, it gives them something new to tell others.

Don't allow even one employee to be grumpy or haughty toward customers. Evangelists are just as, if not more, loyal to your people than they are to your product, service, or brand. An employee with a bad attitude toward customers is like a virus that spreads bad word of mouth, and the years spent cultivating a good reputation can be lost in months or weeks.

Glen Urban, professor at MIT Sloan School of Management and author of Don't Just Relate—Advocate! A Blueprint for Profit in the Era of Customer Power

Do remember that loyalty is built over time through a collection of positive experiences.

Don't assume that the lack of complaints is equal to a satisfied customer base.

Frederick Reichheld, a fellow at Bain & Co., founder of that firm's Loyalty consulting practice, which strives to help clients improve customer, employee, and investor loyalty, and author of The Ultimate Question: Driving Good Profits and True Growth

Do keep the following in the mind: Customers who become promoters must first believe that a company offers superior value in terms of price, features, quality, functionality, ease of use, and all the other practical factors. Additionally, they must feel good about their relationship with the company—they must believe the company understands and values them, listens to them, and shares their underlying principles. A company able to combine these factors will create promoters, customers who eagerly recommend a company or service to family members, friends, and colleagues.

Don't treat your customers as if they were expendable. Companies that break the Golden Rule by misleading, coercing, and disrespecting their customers effectively turn them into detractors. Examples in today's world are countless, but they include nuisance fees and hidden charges, poor in-store service, and dreaded automated customer help lines. Such mistreatment causes customers to switch to competitors, cut back on their purchases, and, worst of all, warn others to stay away from the company.

 http://www.businessweek.com/smallbiz/tipsheet/06/29.htm

10 Magical Keys of Motivation

by Eileen O. Brownell


We accomplish things by directing our desires, not by ignoring them. --Unknown


During a recent study of leaders worldwide, it was discovered that over 70% were raised in poverty, were physically challenged or had been abused as children. How were these individuals able to overcome adversity and get to the top of their chosen field? Why were they able to stay at the top once they got there? It's simple. They received guidance and were motivated to succeed. Mentorship was the gift that allowed these individuals to develop navigation and goal setting skills to exceed their own expectations. A major part of mentorship is knowing how to motivate others.

According to Kurt Hanks, author of Motivating People, 90% of our personal needs are met in part by other people. If employees meet 90% of an organizations needs by making decisions and completing work, their contributions need to be constantly revitalized. One of management's major responsibilities in the revitalization process is to help motivate staff. While motivation comes from within, it is reinforced by outside sources. Management's function and responsibility, is to develop employees through motivation.

Initially, you must know what motivates each employee and then assist them with obtaining their inner desires. For example, one staff member may be concerned with creating a solid financial foundation for their children's education, while another employee is anxious to retire, and a third employee fresh out of college is anxious to buy a new car. All three are financially driven, but for different reasons. Each is of a different generation and has different values. Your responsibility as a manager is to understand their needs, values and help them to stay motivated on the job while they accomplish their personal goals. There are a multitude of techniques and ways this can be done. Try the following steps and see if productivity in your organization does not increase.


Agree on desirable work performance standards. It is important that the staff member is involved in the process of establishing work performance standards. When employees are involved in the decision making process, they are more apt to understand what is expected of them, set higher performance standards for themselves and strive for excellence.

Define a job well done. While establishing performance standards, it is important that you recognize, acknowledge and celebrate a job well done. Employees need a pat on the back individually and publicly in front of their peers.

Eliminate barriers to success and develop employee skills.
When an employee succeeds, the company benefits. When we fail to remove barriers to an individual’s success, we may loose a valuable employee, physically, emotionally and/or mentally. If an employee for example, wants to continue their education, then work with them, to make it possible. This may mean adjusting their hours to accommodate school schedules or approving job related educational reimbursement. Remember you are not only investing in the individual, you are also investing in the success of your business.

Show the employees the job is worth doing.
You set the tone and the example for the completion of all job tasks. Your enthusiasm for even mundane tasks will demonstrate that each and every job assignment contributes to the success of the whole organization. Much like stew, individually, all the ingredients have a distinct flavor. Some can be eaten alone, like the meat or potatoes, other such as the spices cannot. When all the ingredients are combined however, the stew has much more flavor and is a complete meal.

Uses the employee's skills, talents and interests. To keep people motivated, it is important they work at or above their current skill level. Most people love to stretch their skills and abilities. They do not want to remain complacent. Occasionally it may be necessary to ask someone to temporarily work below their level of expertise due to emergencies, last minute changes or a shortage of staff. It is not fiscally sound nor does it motive people, when they are left in a lesser position for a prolonged period of time.


Create a positive work environment. People want to feel good when they come do work. A positive environment encourages staff to come to work. A positive environment stimulates creativity, encourages teamwork and develops the skills of the individual for the betterment of the entire group.

Provide challenging work. The days of the repetitious assembly line are going by the wayside. People want to have work that challenges their intelligence and creativity. Even automakers have discovered that employees perform better and create a better product when they use several skills and have several assignments rather then putting a widget in the same place, the same way on every car. Challenging work provides mental stimulations. When people are mentally stimulated they work harder to find solutions to problems and feel successful when they have completed challenges.

Have a vision. People want to know the direction an organization is going. Employees want to decide for themselves if they want to be part of the process. Whenever possible, it is important that the employees are part of the vision creating process. Staff will accept changes that occur easier when they help decide what will happen within and to a business in the years ahead.

Communicate in all directions. There is nothing worse then finding something out through the grapevine. Employees will be moved to action if they know you will keep them informed in a timely manner. Be willing to share their ideas and concerns with your peers and superiors. Be their voice and staff will shower you with loyalty and action.

Empower staff, and then get out of their way! There is nothing worse for an employee then a boss who makes an assignment and then hovers as they complete the task. That is a real deterrent to motivation. The employee feels much like a child who's parents are watching just waiting for them to goof. No two people will ever do a job exactly the same, and that's okay! When you try to fit everyone into the same work pattern and mold, means creating a team where no one fits.

Every manager is dependent on their staff for the completion of specific tasks and jobs. As a manager, it is your responsibility to influence your employees so that positive results occur and goals are met. Without motivation there is no change, no action, no learning or most important of all, no results. How can you get others to do what their job requires? The answer is simple, motivation! The fun and enjoyable part for you as a manager is getting to know your staff individually, so that you can find just the right key to motivate each and every person. The end results will far exceed your expectations and maybe even theirs.



Eileen O. Brownell is President of Training Solutions, a Chico, CA based firm. For over 25 years, Eileen continues to be noted as the ‘high-energy’ speaker and trainer who captivates her audiences and makes learning a lasting experience. Her expertise is in the areas of customer service, conflict resolution, communication, and team development. She is licensed to use the Carlson Learning Products that enhance the learning process. Cable television stations have shown Eileen’s educational programs. She can be found in Who’s Who in California, American Women, Professional Speaking and Outstanding Young American Women. "We cannot choose the challenges that confront us. Nevertheless, we can pick our attitude and how we react," is her philosophy. Copyright© 2000, Eileen O. Brownell. All rights reserved. For information about Eileen’s presentations, please call the Frog Pond Group at 800-704-FROG (3764) or email susie@frogpondgroup.com; http://www.frogpondgroup.com.

Megatrends That Will Impact the Way We Manage Sales Organizations

By Sam Reese and Dario Priolo

No question about it: The business landscape is changing dramatically, and smart sales organizations need to change with it.

Major trends—think of them as "megatrends"—in four key categories are driving that shift. Those categories are:
Demographic
Technological
Regulatory
Social

TRENDS 101

Before we discuss each area in depth, let's start with a definition. What exactly is a trend?

From our perspective, a trend is significant long-term change (or changes) in the dynamics of a market, environment—or, in our profession—an account. That change may happen suddenly or gradually, although it usually occurs over a period of time.

Ultimately, to benefit from a wave of change, you must understand both the trend itself and the account's reaction to it. That's doubly important to keep from being swept away from the biggest waves, the changes we've dubbed "megatrends".

MEGATREND #1: DEMOGRAPHIC CHANGE

The oldest members of the Baby Boom generation—the 77 million Americans born between 1946 and 1964—will begin retiring en masse over the next 10 to 15 years. The smaller generations coming up behind them simply don't have sufficient numbers to fill those vacancies. Nowhere is that competition to find, hire and retain the best employees fiercer than in sales, where executives are already feeling the pinch.

Those demographic trends also threaten a less tangible but equally critical aspect of sales: the deep, long-standing personal relationships that vanish when a salesperson or a customer-company's contact person—or both—retire or otherwise leave their jobs.

We recommend that sales organizations that want to triumph despite these challenging trends take the following steps:

Offer flexibility. Survey after survey indicates that many professionals, especially those now younger than 40 years old, value flexibility above most other benefits; they're likely to gravitate to and remain with employers who provide it.

Guard top accounts. Instead of making each account one employee's turf, establish several peer-to-peer ("many-to-many") relationships within that account. That way, even if a star sales rep quits, the account stays safe.

Include C-Suite Involvement. Another recent shift—one that ties back to the peer-to-peer relationships—is the direct involvement of CEOs and other C-level executives in sales processes. Sales activities now touch finance, operations and other departments much more than in the past, and top leadership is taking notice.

Support sales managers. If you're serious about building a world-class sales force, provide the people who supervise the troops with everything they need to keep both upper-level executives and sales teams happy.

MEGATREND #2: TECHNOLOGICAL CHANGE

Nothing changes faster than technology, and, in our industry, the biggest change involves the recent widespread adoption of customer relationship management (CRM) systems. Not so long ago, most sales organizations were reluctant to use such systems because the technology's limitations dictated the relationship-management process rather than enabling and enhancing it.

Today, however, CRM is both simpler and better. On-demand systems are not only more affordable; they're easier to implement and to use. Application exchanges and bolt-on applications also represent major improvements for CRM. As a result, those systems are providing competitive advantage to sales teams who use them to obtain more and higher-quality information with which they can make better decisions.

MEGATREND #3: REGULATORY CHANGE

Free trade and collapse and loosening of "command-and-control" economies, especially in China and Southeast Asia, have created immense new markets. But globalization has also propelled the emergence of new competition and new threats of commoditization.

In our view, the best way for companies to differentiate themselves by constantly adding value is to become an expert in your customers' businesses as well as in your own. You need to:
Understand customers' concerns and desires at least as well as customers themselves do.
Move beyond being a seller to being a solution provider.
Stay ahead of the trend by being proactive.

MEGATREND #4: SOCIAL CHANGE

Today's most relevant social trend is the skyrocketing popularity of social networks, which connect people virtually so that they can share information, resources and referrals.

Today's young social networkers are tomorrow's salespeople. Having grown up with social networking, they're likely to continue relying on this way of communicating and collaborating throughout their careers. (In fact, some business-oriented grownup networking sites are already available).

In addition, research indicates that social capital—which James Kouzes, co-author of "The Leadership Challenge" defines as "the collective value of whom we know and what we'll do for each other"—is catching up in importance with intellectual capital. In fact, there's evidence that effective use of social capital improves business performance for both individuals and organizations.

CONCLUSION

What do these megatrends mean, individually and collectively, for sales leaders? Simply this: The wheels of change are in motion. Jump aboard and steer as best you can, or risk being flattened as the juggernaut goes by. Embracing and rolling along with change will help you recognize and take advantage of opportunities as they arise.

Be A Better Boss In 2007

Forbes.com
By Hannah Clark, 01.08.07, 2:30 PM ET

Do you want to end up like Robert Nardelli, the recently resigned CEO of Home Depot? On Jan. 3, the company announced that its embattled chief executive was resigning, capping a year of conflict with shareholder activists unhappy with his outsized paychecks and Home Depot's floundering stock price.

Nardelli’s autocratic air didn’t help. He apparently failed to realize that the imperial CEO went out of style sometime in late 2001, around the time the bubble burst and Enron's Kenneth Lay was being exposed for greed and fraud. Sure, Nardelli’s $210 million golden parachute will ensure a soft landing for him. But not every chief can expect to ride away with such a stash.

This year, CEOs are up against more challenges than ever before. Feisty hedge funds, ever-impatient Wall Street analysts, consumers looking for socially responsible products, increased regulation, paycheck scrutiny--all of these stressors could haunt you if you're not prepared. If you want to survive, you need to make a few New Year's resolutions.
In Pictures: Be A Better Boss In 2007
In Pictures: Executive Hall Of Shame 2006

No. 1: Understand that these days, shareholders are the kings of corporate America. That means you need to get your pay under control, says Steven Mader, vice chairman of executive search company Christian & Timbers. If investors are clamoring for you to cut your paycheck, there's a good chance the board will listen. Respond to shareholder complaints right away, instead of letting them fester and turn into a full-blown scandal.

And if you haven't already done it, it's time to initiate an internal investigation into your stock option granting practices. The ever-widening scandal around backdated options has shown no signs of slowing down. Even if you don't run a tech company in Silicon Valley, you need to make sure your stock options are squeaky clean. And if they aren't, you need to tell shareholders everything.

You won't regret coming clean. Case in point: Apple Computer recently announced that CEO SteveJobsSteve Jobs was aware that some stock options were granted on particularly favorable dates, though he didn't benefit personally from those grants or "appreciate the accounting implications." Though it wasn't an altogether favorable report, the stock rose on the news.

But you need to concern yourself with more than financial statements. Nardelli lost his job in part because he just wasn't willing to play nice with his employees, shareholders and board members. Directors were unhappy that he wouldn't give up more of his pay in response to shareholder concerns. In the New Year, executives looking to avoid his fate should try to build consensus.

That applies whether you lead a multinational conglomerate or a small, privately-held company. Make sure your employees, your board members and your leadership team all understand your vision for the company. "It sounds like such a simple concept, but it is missing in many organizations," says Gershon Mader, a principal with consulting company Quantum Performance.

Also, don't be afraid to make tough decisions. That may mean firing some of your close associates, says Mark Stevens, CEO of marketing company MSCO, and author of Your Management Sucks. Remember that New Year's maxim: Out with the old, in with the new. If some of your senior managers are underperforming, share your concerns with board members. If they agree with your assessment, warn your lieutenants that they need to shape up or ship out. The world is changing, and slow-moving companies can no longer compete.

And don't forget to take time for non-business pursuits, says Heather Schulz, a senior vice president at the American Management Association. Pick one thing you've always wanted to do--go to the Superbowl? Spend a week in Tanzania?--and buy the tickets. That way, it will be harder to back out because of time restraints right before the trip.

In other words, learn a lesson from BillGatesBill Gates. He's giving up his job as Microsoft's chairman in a couple years in order to focus on his philanthropic efforts. What could be better than that?

Treat Employees Like Volunteers

by Wolf J. Rinke, PhD

Dr. Rinke is a management consultant, executive coach and keynote speaker dedicated to helping organizations and individuals maximize their potential (www.WolfRinke.com). In addition to his new book Don’t Oil the Squeaky Wheel … and 19 Other Contrarian Ways to Improve Your Leadership Effectiveness (McGraw-Hill, 2004), he is the author of Winning Management: 6 Fail-Safe Strategies for Building High-Performance Organizations.

Stop and think, what would you say to your team members if indeed they were volunteers? How about: Please. Thank you! Can I count on you? I need your help. I really appreciate what you’ve done. Thanks for being on my team! Thanks for showing up. And now the one that blows the autocratic managers away: Could you do me a favor? That one I can tell you just doesn’t sit well with lots of managers. Here are some of the things they have said to me: What are you talking about? You’re paying them, they owe you a good job. Or You’ve got to be nuts. They are not doing you a favor, it’s their job, and so on, ad nauseum. All really good arguments, and all really, really incorrect. (If you agree with any of these, its time to wake up and read my book--Don't Oil the Squeaky Wheel. Because the only thing pay will do is get people to show up, and stay with you. Not bad, but certainly not peak performance.) And the fastest way to achieve peak performance is to treat all employees as if they are volunteers. Here's how:

• Give people something to be passionate about

People volunteer and devote inordinate amounts of energy, time and resources if they are passionate about a cause they believe in. You can engage the same passion in your employees by having them align themselves with the passion of the founder, think Jeff Bezos at Amazon, or the passion of the culture of the organization, think Recreational Equipment Incorporated better known as REI or the passion driven by the corporate philosophy, think Johnson & Johnson. (By the way the latter two are preferred ways of stimulating internal motivation since sooner or later the CEO retires or departs for less positive reasons, think Martha Stewart, Bernie Ebbers of WorldCom, or Samual Waksal of Imclone.)

• Build a positive organizational culture

A culture where people want to come to work. Virtually all of the successful companies I have ever consulted with accomplish that by taking employee job satisfaction very seriously. Most measure it at least once a year, several tie compensation of managers to the level of employee satisfaction and virtually all utilize a wide variety of informal systems, such as “breakfast with the boss,” employee “town hall meetings,” schmoozing with employees, functional suggestion boxes etc. In short, do whatever you can to keep your finger on the pulse of how satisfied your employees are. Lest you think this is frivolous, studies show that there is a positive correlation between the level of employee satisfaction and customer satisfaction. In other words if your employees are satisfied, your customers will be satisfied, your sales with increase and your bottom line will improve! Herb Kelleher, former CEO of Southwest Airline, said it best: "If we ever lose our culture we will have lost our most valuable competitive asset."

Case in point. Dennis Madson started as a part-time employee stocking shelves 36 years ago at REI. Today he is the president and CEO of the 6,300-employee, $735 million cooperative that sells specialty gear to avid campers, hikers, climbers and others with a passion of the great outdoors. The same company that has shown up on the Fortune 100 list of the “100 best companies to work for” six years in a row. The secret, according to an interview with Dennis Madsen in the May 2003 Harvard Business Review, is getting the culture right. “Employees can get benefits and incentives anywhere, but it’s harder for them to find a place where they can totally immerse themselves in the culture. We attract outdoors-oriented employees who sustain the culture and attract even more like-minded employees. They share the same interests and values, they’re committed to the environment, to the community, to work-life balance, and to having fun outside."

• Take your mission, vision and core values very seriously

Companies that attract “volunteers” stand for something that employees can identify with and get passionate about. And only passionate employees will deliver consistently excellent service and improve the bottom line. This strategy is analogous to developing a “brand” that is identified with certain attributes. That brand has to communicate that what we do is important and we are special. This organizational brand—I refer to as the philosophy—is critical to attracting and keeping volunteer employees, because they are looking for meaning at work. This is especially true since many institutions that used to provide meaning to people such as government, family, communities, and even religious institutions, are crumbling.

• Make work fun

If it’s fun it gets done. So ask yourself, are your team members having fun yet? Better yet ask them. You see it’s hard to get employees to behave like volunteers when work is a big pain. Ask five of your team members to serve on a “Celebration Team.” Give them a budget. If money is tight, suggest that they contact local merchants who’d love to achieve greater visibility in your company. Ask those merchants to make donations to your Celebration Team. Example: movie tickets, a weekend for two at a local resort, etc. Just be sure to give those who donate lots of visibility. Now ask the Celebration Team to get together to identify specific things they are planning to do each month that are fun. Tell them anything goes, provided that they stay within their allocated budget and it does not violate any laws, rules or regulations.

• Position people to build on their strengths

Statistics tell us that 25% of the US population hates what they do, another 56% could take it or leave it, and only 19% love what they do. Typically people who love what they do—volunteers—are in jobs that let them build on their strengths. So find out what your team members love to do and do everything in your power to place them in those positions.

• Invest in career development

If you want your organization to get better, your employees have to get better. That may be common sense—however my experience as a management consultant demonstrates time and time again that common sense is not very common. The best of the Fortune 100 Best Companies to Work for in 2001 and 2002—Stockbroker Edward Jones of St. Louis—got this figured out. They provided 146 hours of training, 3.8% of its payroll, for every employee during 2002. And new brokers get—are you ready for this—four times as much. And in today’s economy where job loyalty has all but vanished, providing valuable training to your employees is about the only fail-safe strategy left to insure that people stay with you. Because employees who feel that they are growing on the job are much more likely to feel like volunteers and stick with you!

• Pay well and provide generous benefits

“But we can’t afford that”—is what I am told repeatedly, especially by managers who have high turnover rates. So let's do a little bit of quick math. Let's assume that your turnover rate is 40%, your average salary including benefits is $25,000/year/employee, and that you have 200 employees. Human resource professionals estimate that replacing an experienced employee costs—depending on skill level—an average of one to one and a half times the employees’ annual salary. Some of that cost is obvious such as recruiting, interviewing and training costs. The greatest proportion, however are hidden costs. For example, when you lose an experienced employee, customer satisfaction will be lowered, which may have a significant negative impact on your bottom line. And the new employee, even being properly trained, will not perform at the same level of competence and productivity of an experienced employee for at least several months. This too, costs you. Plus there are many other hidden costs every time you lose an experienced employee. Let’s be conservative, and use the one times annual salary estimate. That means that the turnover cost for this hypothetical case is $2,000,000 per year (80 employees x $25,000). If you are able to cut that turnover rate in half, you would save $1,000,000 per year. I bet, that even if you paid slightly more than the competition, tied additional compensation to performance such as customer satisfaction, and provided your employees with highly valued fringe benefits, you would have lots of money left over! Money that would go straight to your bottom line.

• Help employees succeed

You know the old saw: nothing breeds success like success. Well guess what, it’s true. Volunteers want to feel good about themselves and one of the best ways to do that is to help them succeed faster. So promote from within and do whatever you can to provide team members with highly challenging assignments. Provide tuition assistance, empower, coach and do whatever it takes to enable team members to succeed and while they are doing that they will just happen to make significant contributions to the overall success of your organization. That’s nice!

• Build a high trust workplace

High trust starts with telling employees more than they want to know, making sure that your word is as good as gold, and giving employees self-confidence so that they can become the best they can be. And it’s supplemented with a strong bias against layoffs. (Edward Jones and a great majority of the Fortune 100 Best companies have never had a mass layoff).

• Be positive and energetic

Attitudes, just like colds are catching. Positive attitudes are caught just as easy as negative attitudes. The only problem is that negative attitudes suck the energy out of your team members like a giant sponge—something volunteers are just not going to put up with. On the other hand positive attitudes are like the little Energizer bunny, it’ll keep your team members going, and going, and...(Well, you get it.) To build a positive attitude, become aware of your conversations including the ones that you have inside of your head. Recognize that positive language energizes you, and negative, cynical, “stinking thinking” conversations, de-energize you and your team members. Make it a practice to say positive things, especially about other people, or say nothing at all. Also recognize that your mind can hold only one thought at a time. It can either be positive or negative, it is your choice! So when you catch yourself thinking positive thoughts, congratulate yourself. On the other hand when you are thinking negative thoughts, catch yourself, change those thoughts, then give yourself credit. Remember your team members take their cue from you! You must be the role model for the kind of behaviors you want them to exhibit. (For in-depth strategies of how to make this happen read my Make It a Winning Life book.)

What’s all this add up to? My work with highly successful companies has shown me that treating your team members like volunteers means that you will have lower turnover rates, will be able to pick the cream of the crop any time you need to fill a vacancy and achieve massive improvements in your overall profitability.