The Leading from the Heart Workshop

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The Leading from the Heart Workshop
Welcome to the
Age of Corporate Governance
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You will be confronted with questions every day
that test your morals. Think carefully, and for
your sake, do the right thing.
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Ex-Tyco Chief Executive Kozlowski Sentenced to 8
to 25 YearsHeadline / Bloomberg.com /
09.19.2005
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Strong Fundamental Values We must demand of
ourselves and of each other the highest standards
of individual and corporate integrity. We
safeguard company assets. We comply with all
company policies and laws.
Source The Tyco Guide to Ethical Conduct
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We safeguard company assets. Regency mahogany
bookcase, c. 1810, 105,000 George I walnut
arabesque tallcase clock, 113,750 Custom queen
bed skirt, 4,995 Custom pillow,
2,665 Ascherberg grand piano, c. 1895,
77,000 Chandelier, Painted Iron, c. 1930,
32,500 Pair of Italian armchairs, c. 1780,
64,278 Persian rug, 20 feet by 14 feet, 191,250
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In corporate America, crime pays. Handsomely.
Grotesquely, even.
Arianna Huffington
Pigs at the Trough
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Ebbers luck runs out in sweeping victory for
fedsHeadline / USA TODAY / March 16, 2005
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Chretien takes fall for AdScam GomeryHeadline
/ Ottawa Sun / November 1, 2005
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I said, Ship the documents to the feds. She
heard, Rip the documents to shreds.
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Theres a hole in the moral ozone
and its getting bigger. Michael Josephson
BERNARD EBBERS DENNIS KOZLOWSKI
MARK SWARTZ SCOTT SULLIVAN
HARRY STONECIPHER HANK GREENBERG
JOHN RIGAS TIMOTHY RIGAS
JEFFREY SKILLING KENNETH LAY
ANDREW FASTOW
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Its as if we have given the CEOs weapons of mass
destructionat least economically.

• Brian Shapiro
  University of Minnesota

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The stock market boom may be over, but the
business scandal boom is on. James Ledbetter,
Slate Monday, March 25,
2002
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No-Bid Contracts Bring Scrutiny to N.J.
Health-Sciences UniversityHeadline / Chronicle
of Higher Education / 06.17.05
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These arent presidential decisions. Its
micromanaging, and its beyond my
competence. Stuart D. Cook, former President
University of
Medicine and Dentistry of New Jersey
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A lot of this is nickel-and-dime stuff. I regard
it, and many of my colleagues regard it, as a
real distraction from the mission of the
university.
Emanuel Goldman
Faculty Senate President, UMDNJ
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New Study of High School Students Reveals High
Levels of Cheating, Theft and Cynicism Despite
Stated Convictions and High Self-Esteem
Concerning Ethics, Character and Trust 2004
REPORT CARD The Ethics of American Youth
Josephson Institute of Ethics
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The inconsistency seems to be explained by high
levels of cynicism about the ethics of successful
people. Press Release Josephson Institute of
Ethics
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CYNICISM
59 percent agreed that in the real world,
successful people do what they have to do to win,
even if others consider it cheating 42 percent
believe that a person has to lie or cheat
sometimes in order to succeed 22 percent
believe that people who are willing to lie,
cheat or break the rules are more likely to
succeed than people who do not
Press Release Josephson Institute of Ethics
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ONLY HALF, ONE OUT OF TWO, U.S. EMPLOYEES
TRUST THEIR SENIOR LEADERS. DO YOURS TRUST YOU?
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Source Watson Wyatts WorkUSA 2004 Survey
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With fewer than half of employees expressing
confidence in senior management, no company has
been left untouched by the fallout from recent
turmoil in the business environment. -Ilene
Gochman, Ph.D., Watson Wyatt
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Consistency between an organizations stated
values and the actual behavior of its leaders is
critical to credibility. When there is
discrepancy between what leaders say and what
they do, the leaders are exposed as frauds.
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used-car salespersonslick insurance
agentpushy politiciandishonest personal injury
lawyergreedy postal workerpostal
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business leaderjustice-obstructing, debt-hiding,
earnings-overstating thief who uses company funds
to purchase personal artwork and to put on lavish
birthday parties for family members
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People aresearching for leaderswith integrity
who provetheir credibilitycontinuously.
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Values-based leaders demonstrate six vital
integrities. They

• Accept challenges and take risks
• Master both listening and speaking
• Live by the values they profess
• Freely give away their authority
• Recognize the best in others
• Have a vision and convince others to share it

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VitalIntegrities
Leadership actions that, when practiced
proactively, demonstrate your organizations
existing values and further establish your
credibility as a leader.
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values-based leaders
Accept Challenges and Take Risks
vital integrities
Risk seeking separates values-based leaders from
the yesteryear-theory bureaucrats who sit around
supervising the work. Why is that important?
Leadership is proactive, as people can only
follow leaders who are moving.
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Risk Seekerswhile others seek out opportunities
to lead.

• Risk TakersSome people respond to challenges
  that are presented

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• Other leaders are adventurers, continually
  placing themselves in positions to discover new
  challenges. They volunteer for the tough jobs and
  always question the status quo.

• For most leaders, the opportunity to meet a
  challenge is an assignment. Those leaders rise to
  a presented challenge.

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PROACTI V E

• Leadership requires the courage to surround
  yourself with employees who are potentially
  better at their jobs than you are at yours.
• Admitting Ignorance
• By owning up to a lack of knowledge and deferring
  to their expertise, youll show workers that you
  are willing to risk your pride to get the job
  done.

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PROACTI V E

• In a time of constant change, one thing hasnt
  changed Organizations are still resistant to
  change.
• Pushing for Change
• The change agent of the old economy worked in an
  environment where incremental change was all that
  was neededand all that was tolerated.
  
• Robert Reich

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PROACTI V E

• Challenging Bad Decisions
• If you are in middle management, dont be a
  wimp. Dont sit on the sidelines waiting for the
  senior people to make a decision so that later on
  you can criticize them over a beerMy God, how
  could they be so dumb? Your time for
  participating is now.
• Andrew Grove, CEO Intel

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PROACTI V E

• Leadership is going first in a new directionand
  being followed.
• Andrew Grove
• Volunteering to Go First
• As a leader, you must summon the courage to chart
  the course, venture into the unknown, challenge
  defeat, and risk disappointment. Your initiative
  will encourage others.

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Doing what Ann and Liv did
is much harder than reaching the peak of the
mountain, flying a flag, and saying, Were
heroes, take us to the parade.
Will Steger
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Real leadership is not about getting to the top.
In this game, leadership is about coming back
alive. -Will Steger
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First, we weigh our chances of success. Next,
we measure the importance of success. We also
gauge how much control we have in the outcome.
We assess our own skill. A values-based
assessment should override all other assessments
of risk. That is does taking this risk
demonstrate your adherence to the organizations
values, or not?
How we assess risk determines how we take risk.
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Im always wondering, how will I act at my
moment of truth? Will I rise up and do whats
right, even if every fiber of my being is telling
me otherwise? Ann Bancroft
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Risk
Seeker
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values-based leaders
Master Both Listening and Speaking
vital integrities
The way we communicate with our employees impacts
how workers understand our messages, and what
actions, if any, they take in response.
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The biggest problem with leadership communication
is the illusion that it has occurred.

• Boyd Clarke and Ron Crossland
• The Leaders Voice

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disconnect synergy buy in TLA human
capital quality
circle good people dog pony show ball
park figure carpet vs. concrete
work-in-process job ready paradigm shift
quality circle rightsize fuzzy math
outsourcing talk offline surplused
just-in-time
jargon
jargon
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Jargon is a specialized vocabulary coined by, and
intended for, a particular profession or
discipline. Industrial phrases, buzzwords, and
acronyms are used as verbal shorthand to
streamline communication among colleagues.
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Lets talk offline after the MSA quality circle.
We need to do some global thinking and examine
best practices to find synergy in our
co-curricular activities. Ill meet you later in
the living room of the campus to discuss a
seamless, student-centered solution to our
disconnect.
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Sure, I can tell you how to get to the VC. Turn
left at the Green, go past the Quad, take a right
at the STAC, and continue past the Commons. You
cant miss it.
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I pulled an all-nighter with ALICE and finished
my research paper. Now Ive got to get over this
netlag, because Im planning on seein the
Governor tonight.
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I gotta bounce to a chalk and talk taught by a
TA who speaks EFL. I hope that sage on the stage
can keep me awake.
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Say what?
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JARGON
often includes euphemisms used to substitute
inoffensive expressions for those considered
offensive.
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These actions will align our resources with
market needs and adjust the size of our
infrastructure. Chad Holliday, DuPont CEO

announcing the elimination of 3,500 jobs
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why jargon?

• Speakers sometimes invoke workplace jargon to
  impress others, or to establish their membership
  in an elite faction. Some use jargon to exclude
  or confuse others, or to mask their own
  inexperience or lack of knowledge.

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Although jargon is used by bureaucrats of all
kinds to facilitate their own interactions, it
seems to me that, in education, bureaucrats
additionally employ jargon to keep their real
agenda (the socialization of students) and their
dismal academic results hidden from parents and
taxpayers. Barry Kavanagh, former Ontario
college teacher
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The educational suitability assessments of this
students official record of achievement indicate
that his outcomes have not been at a level deemed
appropriate for satisfactory completion of any of
his courses. Therefore, he is not institutionally
prepared.
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20 percent
of employees are regularly confused about what
their colleagues are saying, but are too
embarrassed to ask for clarification
More than a third
admitted using jargon deliberatelyas a means of
either demonstrating control or gaining
credibility
40 percent
found the use of jargon in office meetings both
irritating and distracting
One out of ten
dismissed speakers using jargon as both
pretentious and untrustworthy
Source Office Angels
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It is impossible even to think without a mental
picture.

• Aristotle
  On
  Memory and Recollection
  358 B.C.

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Hugh
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Stories
create the emotional perspective listeners
need to connect with your message.
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The age-old secret to generating buy-in is to
strategically design, target, and deliver a story
that projects a positive future.

• Mark S. Walton
  Generating Buy-In Mastering the
  Language of Leadership

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values-based leaders
Live By The Values They Profess
vital integrities
Now, since the onslaught of corporate scandals,
we conceive of business leaders as
justice-obstructing, debt-hiding,
earnings-overstating thieves who use company
funds to purchase personal artwork and to put on
lavish birthday parties for family members.
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Values cannot simply be expressed in the words of
a mission statement or marketing slogan. Values
must be demonstrated in the leaders character
and actions.
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Top 100 Retailers in 2004
Revenue in Billions

• Wal-Mart 288.2
• Home Depot 73.1
• Kroger 56.4
• Costco 47.1
• Target 46.8
• Albertsons 39.9
• Source www.stores.com

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WAL MART gt HOME DEPOT KROGER COSTCO TARGET
ALBERTSONS
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Even though small businesses are one of the
fastest growing sectors of the economy, access to
capital remains a key barrier to growth for
women- and minority-owned businesses. -Jay
Fitzsimmons, senior vice president of finance and
treasurer, Wal-Mart
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We are lowering the costs to make health
insurance more affordable.
Dan Fogleman
Wal-Mart Spokesperson
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 For us, there is virtually no distinction
between being a responsible citizen and a
successful business. They are one and the same
for Wal-Mart.

• H. Lee Scott
  Chief Executive, Wal-Mart

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These moves would also dissuade unhealthy people
from coming to work at Wal-Mart.
Internal memo from Wal-Mart
benefits
director Susan Chambers
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Workers who believe their organizations act with
integrity are nine times more likely to stay in
their current jobs.
Source Walker Information - Commitment In The
Workplace The 2003 National Employee Benchmark
Study
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But when they mistrust their bosses, or are
ashamed of their organizations conduct,

4 out of 5
workers say they feel trapped at work and are
likely to leave their jobs soon.
Source Walker Information - Commitment In The
Workplace The 2003 National Employee Benchmark
Study
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Employees are assets with feet. Theyre the only
resource companies have that make a conscious
decision to return the next day.
Press Release, Walker Information
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REHIRE
your employees
EVERY DAY
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values-based leaders
Freely Give Away Their Authority
vital integrities
Why the emphasis on giving away authority? Giving
authority to others demonstrates trust in people.
Trusted employees are more effective, creative,
and satisfied. And a funny thing happens when you
trust peoplethey trust you back!
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Hierarchy is an organization with its face
toward the CEO and its ass toward the
customer. 

• -Kjell A. Nordström and Jonas Ridderstråle
• Funky Business

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Giving away our authority is a personal
challenge. It involves sharing influence,
prestige, and applause, while forcing us to deal
with our personal insecurities.
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Wally who?
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Once you abandon those concerns, you will
recognize empowering others as its own reward.
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Manager

• But my employees dont want to be empowered!

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Gary Hamel

The bottleneck is at the top of the bottle.

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• Micromanagers
• Micromanagers operate from a lack of trustthey
  distrust their employeesso they feel the need to
  maintain complete control. As a result, they set
  modest expectations for employees.
• Highly negative managers
• These leaders strip employees of their
  self-esteem. Employees may wrongly attribute
  their powerlessness to their own incompetence. To
  the delight of negative managers, their employees
  often feel too inadequate to seek other
  positions.
• Poor communicators
• Leaders who are unable to explain the big
  picture, or simply dont share their vision,
  deprive employees of an understanding of why
  certain actions are taken.

STYLE
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Not all malcontent employees are mavericks, but
virtually every maverick is a malcontent.

• Wayne Burkan, Wide Angle Vision

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disagreeordisrespect?
If you attribute free thinking to disrespect,
your personal biases and preconceptions may
result in missed opportunities.
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If your mindset makes every outcome a foregone
conclusion, your risk takers will stop
challenging the status quo and youll find
yourself left with a staff made up of past
perpetuators.
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I start with the premise that the function of
leadership is to produce more leaders, not more
followers.

• Ralph Nader

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values-based leaders
Recognize the Best in Others
vital integrities
Values-based leaders recognize that each persons
talents are unique and that a persons best
opportunity for growth is in exploiting those
strengths.
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Geeks are different from other people. If this
comes as a shocking statement to you, youre
either oblivious to others or unusually
charitable with your opinion about others. Paul
Glen, Leading Geeks How to Manage and Lead
People Who Deliver Technology
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GEEKSPEAK
Just when you understand the difference between a
megahertz and a megapixel, geeks start talking
about link rot and packet jams.
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Geeks resist mainstream or official authority
structures. They respect technical knowledge far
more than where a person resides on the
organizational chart.
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As leaders, we would prefer that geeks behave
like the rest of us. But our geeks
personalities, even if grating to some, are
immaterial to their productivity.
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greatness
achieve
When we force our employees to strive for
proficiency in everything, we miss the
opportunity for them to
or mastery in something in the one area where
they may, indeed, achieve just that.
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• When striving for improvement, most of us do the
  same thing we take our strengths for granted,
  and concentrate all our efforts on conquering our
  weaknesses.

• The vast majority of organizations appear to
  believe that the best way for individuals to grow
  is to eliminate their weaknesses. So they
  instruct workers to recognize and focus on their
  deficiencies.

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Gallop survey question At work do you have
the opportunity to do what you do best every day?
? Strongly Agree (20 percent)
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? Strongly Agree
38 percent more likely to work in business units
with higher productivity 44 percent more likely
to work in business units with high customer
satisfaction scores 50 percent more likely to
work in business units with lower turnover
Source Now, Discover Your Strengths Marcus
Buckingham and Donald Clifton
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Identifying each persons strongest talents
permits everyone the opportunity to contribute
what they do BEST.
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values-based leaders
Have a Vision and Convince Others To Share it
vital integrities
We often describe children as having wild or
active imaginations. The best leaders never
outgrow their imaginative gift.
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Have a Vision

• Good leaders have a vision. They hold in their
  minds pictures of what is possible. Vision is the
  power to conceive a future thats better than the
  present.

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Convince Others to Share It

• Great leaders convince others to share their
  visions by articulating them in memorable and
  inspirational ways.

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Old storyTwo stonemasons, working on the
same project, are asked, What are you doing?

• Im cutting stone.
• Im building a great cathedral.

• The first stonemason replies
• The second stonemason replies

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I have a dream that one day this nation will
rise up and live out the true meaning of its
creed We hold these truths to be self-evident
that all men are created equal.
I have a dream that one day this nation will
rise up and live out the true meaning of its
creed We hold these truths to be self-evident
that all men are created equal.
Martin Luther King, Jr.Delivered on the steps of
the Lincoln Memorial inWashington D.C. on August
28, 1963
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Emphasized Common Values
It is a dream deeply rooted in the American
dream.
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Described the Importance of the Values
And if America is to be a great nation,
this must become true.
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visionsopponents I have a dream
that one day down in Alabama, with its vicious
racists, with its governor having his lips
dripping with the words of interposition and
nullification, one day right there in Alabama,
little black boys and black girls will be able to
join hands with little white boys and white girls
as sisters and brothers.
disparagedthe
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FORECASTED SUCCESS
When we allow freedom to ringwe will be able to
speed up that day when all of Gods children,
black men and white men, Jews and Gentiles,
Protestants and Catholics, will be able to join
hands and sing in the words of the old Negro
spiritual, Free at last! Free at last! Thank
God Almighty, we are free at last!
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Selected Emotional Language
we will not be satisfied until justice rolls
down like waters and righteousness like a mighty
stream. Adapted from Amos 524
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Let the nation and the world know the meaning of
our numberswe are not a mob. We are the advance
guard of a massive moral revolution for jobs and
freedom. Asa Philip Randolph
August 28, 1963
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No one could remember an invading army quite as
gentle as the two hundred thousand civil-rights
marchers who occupied Washington today. The
sweetness and patience of the crowd may have set
some sort of national high-water mark in mass
decency. Russell Baker
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George wears his passions on his sleeve. He
needs to learn to hide his emotions from his
employees. -From every performance review Ive
ever gotten
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Churchill
Before you can inspire with emotion, you must be
swamped with it yourself. Before you can move
their tears, your own must flow. To convince
them, you must yourself believe.
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vital integrities
SIX

• Accept challenges and take risks
• Master both listening and speaking
• Live by the values they profess
• Freely give away their authority
• Recognize the best in others
• Have a vision and convince others to share it

values-based leadership
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Leadership is a craft, with the best
practitioners guided by their values.
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The Leading from the Heart Workshop

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