PEOPLE-CENTRIC LEADERSHIP GOOD INTENTIONS ARE NOT ENOUGH Darden Alumni Weekend April 27, 2012 Ed Hess Professor of Business Administration Batten Executive-in-Residence Hesse@darden.virginia.edu www.EDHLTD.com OBJECTIVES: Share with you converging research on: High performance organizations (HPO) High performance leadership Manager best practices Begin thinking about what effective leadership means. Begin drilling down to the mission critical behaviors necessary for effective leadership. 2 THE REAL CHALLENGE Leadership attitudes and beliefs Leader values Leadership principles Leadership philosophy Behavior Most people figure out what leadership is Most people fail to execute Translating theory into consistent daily behavior 3 CLEAR AND COMPELLING $$$ Employees Clients 4 HOW DO YOU CREATE EMPLOYEE ENGAGEMENT? 1. 2. 3. 4. 5. 6. 7. 8. Is it your culture? Is it having fun? Is it $$? Is it perks? Is it hiring the right people? Is it being a great place to work? Is it charismatic leadership? Is it having the right mission? 5 #1: MOST CRITICAL: MOST IMPORTANT FACTOR Leaders OR Leaders OR Leaders 6 EMOTIONAL INTELLIGENCE RESEARCH CASE WESTERN 50-70% of how employees perceive their job can be traced to 1 person = their boss Does my boss: truly care about me ? help me grow and advance? give me feedback fairly and consistently ? listen to my opinion ? treat me as a person ? 7 THE “DOMINO EFFECT” OF LEADERSHIP Leadership cascades down an organization People think it is okay to treat their people like they are treated People imitate, role model acceptable behaviors 8 LEADERS Most people want to lead because of the: 5 Ps Power Prestige Pay Promotions Perks 9 LEADERSHIP PERSPECTIVE Is it all about YOU? OR Is it all about THEM? 10 LEADERSHIP PRINCIPLES Straightforward and simple, really only 4: Golden Rule Take care of your people Lead by example Do what’s right 11 LEADERSHIP PRINCIPLES Principles are Simple, Daily Execution is Hard Consistency Discipline Thousands of little acts Leadership fishbowl Expertise research 12 LEADERSHIP PRINCIPLES Communication happens through: 50% Body language 38% Tone 7% Words Professor Jane Dutton Energizing Your Workplace 13 HPLS OF HPOS 1. UPS 9. SAS 2. Best Buy 10. Walgreens 3. Tiffany & Company 11. Room & Board 4. Whole Foods 12. Levy Restaurants 5. Ritz Carlton 13. Starbucks 6. Southwest Air 14. Costco 7. Outback 15. McKinsey 8. Sysco 16. San Antonio Spurs 14 POSITIVE WORK ENVIRONMENTS PWE’s lead to better performance, creativity, decision making, and cognitive processing PWE’s are characterized as being positively energizing not energy draining : statements 5 to 1; inquiry to advocacy 1 to 1 Cameron, Positive Leadership ( BK, 2008) 15 EFFECTIVE LEADERSHIP EXECUTION Fight the Daily killers of Effective Leadership Five Steps Leadership Skills How to Lead Leader’s Self-management Tools Right Leadership Attitudes and Beliefs 4 Fundamental Leadership Principles 16