Model the Way

The old adages “practice what you preach,” “put your money where your mouth is,” “walk the talk” – all boil down to one common denominator. Regardless of culture and geography the top four qualities that effective leaders have are: honest, forward-looking, competent and inspiring. Taken as individual traits each has a distinct role, but collectively these qualities represent that key quality every effective leader possesses: credibility. Never forget that titles may be granted but leadership must be earned. Your most precious personal asset is your own credibility and you need to stay vigilant to honor and sustain that credibility to be an effective leader.

When Jim Kouzes and Barry Posner interviewed Elaine Fortier, then VP of HR at NewFocus, she was experiencing the turmoil of the dotcom bubble collapsing and the uncertainty of the industry and heralign_heart.jpg role professionally. She recognized that no one was going to come along and save her and so she posed this question to herself: “What is my framework for living?” She then made a concerted decision to bring love and courage to the center of her life and align her behaviors with those principles. Credibility emerges from exhibiting behavior consistent with our values. The language we choose to use becomes our action, which becomes our habits, which become our character. Organizations where people believe their managers and leaders follow through on promises and demonstrate the values they extol, consistently financially outperform companies lacking internal credible leadership.

The Speed of Laughter

john_sweeney.jpgThe other day John Sweeney came down to the studio and shared his wit and energy. He has applied his remarkable presence and sincerity to help people and organizations accelerate their innovation by bringing the philosophies and creativity of theater to the workplace. With his wife, he owns and operates the oldest running comedy workshop in the nation in Minneapolis.

As you might imagine companies can learn quite a bit by employing the ideas and energy that thespians use every day. If you have ever done theater you know the strength of a scene hinges on the interaction and support from all players on stage. Each moment presents new opportunities for new and dynamic synergies to emerge – but it all hangs on the presence and engagement of the players. One key lesson John reminded me of is the stifling effect status can have in a creative process. When status walks in the room, people get quiet, ideas diminish, and energy dies. So remember, as a leader you have to check your ego and status at the door if you expect rich interactions.

It’s about Ethics – Compliance is dead

pat_dixon.jpgPat Dixon shares this frightening story about investment bankers who don’t understand the very products they construct and bring to market. It’s definitely an amusing story but after the laughter subsides, realization sets in that people like this exist in the world and can construct such unnecessary and senseless complex investment tools, which can bring tremendous risk to the marketplace.

Which is why we have things like Sarbanes-Oxley. But if your energy is focused on making sure you are legally compliant, you’re already behind the eight-ball. Legislation – like SOX, or carbon emissions, or even seatbelt laws – are typically re-active to market events, not preventative. If you want to ensure your business is going to be legally compliant in the future, focus on the ethical implications of your business in social and environmental contexts. If you behave with moral and ethical integrity, you’re not likely to have to worry about legal compliance.

The Journey to Authentic Leadership

bill_george22.jpgWhen Bill George was conducting research and interviews for his book, True North, he sat down with Howard Schultz who tells a compelling story of how, as a child, he watched his father get fired and abused by company after company. He promised himself that if he ever had the opportunity he would build a company that respected employees and contributors and give everyone an opportunity to grow and develop in their roles.

It’s an important message and a recognition that everyone in the organization deserves key inalienable rights, aside from the life-liberty-justice stuff. The extrapolation of this story is clearly around respect for the people that make possible the function of business. Listen to Bill’s QuickTalk and also check my post on Jeffrey Pfeffer and his classic line: “if you intend to tell everyone what to do, hire idiots, they’re cheaper.”

How Starbucks Got into the Music Business

jim_donald.jpgIf you walked into Starbucks’ original store fifteen years ago you would enjoy the custom mix CD of the store manager who liked to listen to interesting music while he worked. Quickly customers wanted to know what they were listening to and how could they get a copy. In 1999 Starbucks purchased a little company called HearMusic and started publishing music. Music is, of course, core to the coffeehouse experience so it seemed a natural fit for Starbucks to pursue music offerings. But it was the sales blizzard of “Genius Loves Company” – the platinum collaboration with Ray Charles that really launched the Starbucks publishing name in the music business. Now Starbucks has regional and national competitions to help find and promote the next coffeehouse troubadour. You can vote here!

Turn into the storm

erik_w.jpgErik Weihenmayer is the only blind person to have climbed the “Seven Summits,” the tallest peak on every continent. He has scaled the 3000 foot rock face of El Capitan, skied down the tallest peak in Europe, and guided Tibetan blind teenagers to 21,500 feet on the north side of Mt. Everest. Erik is also a prolific speaker and author of two books. In his book, The Adversity Advantage, Erik uses a “seven summit” framework to weave personal stories of adversity and triumph to build seven key actions and behaviors to grow through confronting adversity. In his first metaphorical summit “Take It On”, Erik encourages each of us to turn into the storm of adversity and gather strength from it, recognizing the challenge has the power to help us grow.

erik_everest.jpgOn September 18, we were privileged to produce and broadcast a live, interactive leadership event featuring Erik and his remarkable stories. In this brief vignette, Erik tells the story of a man who lost a leg and then ran across Canada. Erik thinks there is a light inside us that can use frustration as fuel. The greater the challenge the brighter that light burns. These people are alchemists: the more lead you pile on them the more gold they produce. They seize the power of the challenge to propel themselves forward. They don’t find a way to win despite adversity; they find a way to win because of it. Think of adversity not as an impediment but as a pathway to greatness.

Change is a constituency of One

immelt.jpgIn 2004 Jeffrey Immelt went before his top executives at GE and said the company was going to drive a big environmental initiative – in renewable energy sources, in global emmissions reduction, in environmentally sound business practices and much more. The majority of his executives looked at him like he was nuts. According to Wikipedia:

“General Electric has a history of large-scale air and water pollution. The corporation is currently listed as the fourth-largest corporate producer of air pollution in the United States, with more than 4.4 million pounds per year of toxic chemicals released into the air. General Electric has also been implicated in the creation of toxic waste. According to EPA documents, only the United States Government and Honeywell are responsible for producing more Superfund toxic waste sites.”

So you can imagine how his top players might have reacted. But Immelt was undeterred. In this interview he states “I’ve worked for GE for 25 years and I’ve made a thousand mistakes but this isn’t one of them.” He recognized an emerging trend, culture, demand, zeitgeist and moved the titanic GE to stay ahead of the curve. Inspiring stuff. Oren Harari has a similar analogy about the precience of Willy Nelson and Madonna.