Gregg Vanourek January 22, 2015

SignPost @GVanourek

“the most elusive championship in all of sports”

“Leadership is a quest.” -Max de Pree

EXCELLENT achieve exceptional results and impacts

“Perfection is not attainable,

but if we chase perfection

we can catch excellence.” -Vince Lombardi

“Effective leadership is not about making speeches or being liked; leadership is defined by results

not attributes.” -Peter Drucker

10

RESULTS + IMPACT

Shareholders

Employees

Customers

Vendors

Community

World

11

“I think every business needs a leader that does not forget the massive impact

business can have on the world. All business leaders should be thinking, ‘How can I be a force for good?’ What I see is demand from our people to be a

business that is good, makes a profit, but also does something for the planet and humanity. I think this is a trend we will

see more of.” -Richard Branson

ETHICAL Doing the right thing, even when it’s costly or hard

“Integrity is the most important characteristic of a

leader, and one that he or she must be prepared to

demonstrate again and again.” -Warren Bennis

failures of leadership at a massive scale

Too many…

The world needs a better brand of leadership

Grim Evidence

• 99th percentile in Control of Corruption (2010)

• 3rd best out of 177 countries on Corruption Perceptions Index (2013) -Transparency Int’l

• Suspected bribery at major companies (e.g., telecom, power, etc.)

• Arena construction scandal • Tax evasion allegations

(companies, people) • Political scandals (e.g.,

personal expenses, etc.) • Sports scandals (e.g.,

doping, cheating, etc.) • Elderly care negligence

• 102 cases of suspected bribery reported to Swedish police in 2013

• 824 registered cases of crimes of corruption reported to The National Anti-Corruption Unit of the Swedish Prosecution Authority, 2003-2011

Source: Helena Sunden, Secretary General, InstitutetMotMutor (Anti-Corruption Institute)

Return on Ethics? ”a growing body of evidence suggests a possible link between ethics and excellent results.”

Source: Ethisphere Institute. See also Corpedia Ethics Index, 2011 Corporate Executive Board survey, and Trust Across America data.

“In addition to increased financial performance, ethical companies benefit from better brand reputation, consumer

loyalty, and higher employee retention rates.” -Alex Brigham, Executive Director, Ethisphere Institute

ENDURING standing the test of time and operating sustainably

“the capacity to endure.” (Wikipedia)

Sustainability: “meet the needs of the present without compromising the ability of future generations to meet their own needs.” (United Nations)

“Making an enduring company is far harder and far more important than making a great product.”

-Steve Jobs

In a large-scale survey of CEOs & CFOs,

78% admit to sacrificing long-term value

for smoother earnings

“Scourge of short-termism”

short-term thinking is “the societal disease of our time.”

-Normal Lear TV producer & writer

“The Long Game”

“Those who built the great companies in our research distinguished between share value and share price,

between shareholders and shareflippers, and recognized that their responsibility lay in building

shareholder value, not in maximizing shareflipper price.”

-Jim Collins, How the Mighty Fall

Business Case for Sustainable Practices

Potential for: Increased sales Cost reduction Risk mitigation

Reputation enhancement Operational efficiency

Customer loyalty Revenue diversification

Pricing premiums Innovation benefits

Competitive advantage Talent attraction, motivation, retention

How?

Head & Heart

The

Colors

Steel & Velvet

Stewards

Alignment

Five Advanced Leadership Practices

The Colors

Old-fashioned? Platitudes?

Joke? Waste of time?

“We are committed to achieving new standards of excellence by providing superior human capital management

services and maximizing the potential of all stakeholders--clients, candidates and employees--through the delivery of the most reliable, responsive, flexible, and

cost-effective services possible.”

Employee Engagement: Sweden

16%

73%

12%

% of employees engaged

Engaged

Not Engaged

Actively Disengaged

Gallup, State of the Global Workplace 2013, data are from 2011-12 from nearly 230,000 full- and part-time employees in 142 countries. Engaged: Work with passion & feel profound connection to company; drive innovation; move company forward. Not Engaged: “checked out”: sleepwalking through workday; put time, but not energy or passion, into work. Actively Disengaged: acting out their unhappiness; undermining coworkers.

% indicating desire for their working lives to be more meaningful

30%

70%

No

Yes

Holbeche and Springett, ”In Search of Meaning in the Workplace,” Roffey Park, London, 2004.

1. Long-term 2. Distinctive 3. Powerful 4. Sticky 5. Shared 6. Short (T-shirt)

Purpose (Why are we here?)

“the best-kept secret in business is that mission-driven companies create far more shareholder value than do

financially driven firms.” -Bill George, Authentic Leadership

make people happy

fulfill dreams

preserve and improve human life

• What value most (what is most important)

• Guide behaviors: responsibilities to each other & other stakeholders

• 3-6 words, + phrases • Used in decision-making • Collaboratively elicited

Values

“My most important job is to articulate

clearly and consistently what the values

of the institution are.” -Dr. Shirley Tilghman

former President, Princeton University

Mayo Clinic 1. The needs of the patient come first (“The best interest of the patient is the only interest to be considered.”) 2. Collaborative medicine (“No one is big enough to be independent of others.”)

Enron had a distinguished board, a first-rate code of conduct, and even ethics officers.

Values on Paper vs. in Practice

Zappos 10 Core Values

Zappos Core Values http://www.inc.com/allison-fass/tony-hsieh-zappos-core-values-hire-fire.html

bold and vivid picture of success

Vision

“only he who keeps his eye fixed on the far horizon will find the right road.”

-Dag Hammarskjöld

Vision (What does success look like?)

1. Clear and compelling 2. Medium-term (5-10 years) 3. Incorporates all stakeholders 4. Inspirational and energizing 5. Paragraph or more 6. Collaboratively elicited 7. (Should include a “BHAG”)

“Your playing small doesn’t serve the world.”

-Marianne Williamson spiritual teacher,

best-selling author, lecturer

eliminate curable blindness -Dr. G. Venkataswamy

“end childhood hunger”

The Colors

1. Whose Purpose / Values / Vision? • Shared PVV: collaborative, synthesizing process

2. Leaders must ensure congruence… • Between Purpose, Values, and Vision • Across divisions and departments • Between the organization and its people

3. Constant reinforcement (especially when the pressure is on)

The Key Is Not Having Colors (PVV) It Is Instilling Them

As a manager, a big part of your job should be getting to know your team, especially including each individual’s personal Colors, and creatively working

to connect their Colors with those of the organization.

Velvet

Steel

One of the worst corporate scandals in history

You’re the new CEO brought in for the turnaround. It’s your first board meeting.

What do you do?

”You have to get the rotten apples out.” -Ed Breen, Tyco’s turnaround CEO

“The #1 thing in the turnaround of Tyco was a culture of basic values.”

-John Krol, former outside lead director

WE FIRE THEM

“Executives owe it to the organization and to their fellow workers

not to tolerate nonperforming individuals in important jobs.”

-Peter Drucker

1. In defense of the triple crown quest: Excellent, Ethical, Enduring 2. I know you all think we should do X, but I’ve decided we need

to do Y. And here’s why...

When to invoke to

steel?

Steel-only leadership fails Velvet-only leadership fails

Effective leaders “flex” between the hard and soft edges of leadership

Do you think you can lead others without leading yourself first?

“KNOW THYSELF” “A happy life

is one which is in accordance with its own nature.”

-Seneca

“The point is not to become a leader. The point is to become yourself, and to use yourself completely— all your gifts, skills and energies—to make your vision manifest.

You must withhold nothing. You must, in sum, become the person you started out to be,

and to enjoy the process of becoming.” -Warren Bennis

Values on Paper vs. in Practice

Be more reflective.

Be clear earlier about purpose.

Be more courageous

(take more risks).

Source: Richard Leider, The Power of Purpose (Berrett-Koehler, 1997), study of people over age 65.

If you could live your life over again, what would you do differently?

BURNOUT

racing against the clock perpetual busyness

information overload “state of emptiness”

Job Burnout

• Nearly all of the sample of 72 senior leaders randomly surveyed reported at least some signs of burnout (Harvard Medical School, 2014)

• 63% of workers say they have high levels of stress at work, with extreme fatigue and feeling out of control (ComPsych, 2012)

• 72% of workers feel burnout on the job (CareerBuilder,

2006)

Creating a culture of burnout is the opposite of creating

a culture of sustainable creativity. -Ariana Huffington

sanctuary and renewal

What’s your quest?

Resources: http://triplecrownleadership.com/

Personal Values Exercise Interviewing for Head and Heart

List of Top Leadership Books CEO Interviews

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gregg@triplecrownleadership.com

Twitter: @GVanourek @TripleCrownLead