The Five Dysfunctions of a Team Jim Alampi March 21, 2016 Return on Capital Invested “In a study of 3,000 companies, researchers at the University of Pennsylvania found that spending 10% of revenue on capital improvements boosts productivity by 3.9%, but a similar investment in developing human capital increases productivity by 8.5% - more than twice as much.” Fast Company August 2003 2 Copyright © 2009 Alampi & Associates, LLC Agenda • • • • • • • • Level 5 Leadership as a Prerequisite for a Team The Value of Values Model Smart and Healthy Executive Leadership Teams The Four Disciplines of Executive Leadership Teams The Five Dysfunctions Model Team Assessment and Report Tools Stop Doing/Keep Doing Exercise 3 Copyright © 2009 Alampi & Associates, LLC Leadership Teams Start with Understanding Level Five Leadership 4 Copyright © 2009 Alampi & Associates, LLC Level 5 Leadership • What is it? • Is it possible? • Is it fair? • Are you up to the task? “You can accomplish anything in life, provided that you do not mind who gets the credit” Harry S. Truman 5 Copyright © 2009 Alampi & Associates, LLC Level 5 Leaders Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company. It’s not that level 5 leaders have no ego or self interest. Indeed, they are incredibly ambitious – but their ambition is first and foremost for the institution, not themselves. Source: Good to Great, Jim Collins 6 Copyright © 2009 Alampi & Associates, LLC Level 5 Hierarchy Level 5 Level 5 Executive - Builds enduring greatness through a paradoxical blend of personal humility and professional will. Level 4 Effective Leader - Catalyzes commitment to and vigorous pursuit of a clear and compelling vision stimulating higher performance. Level 3 Competent Manager - Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Level 2 Contributing Team Member - Contributes individual capabilities to the achievement of group objectives and works effectively with others. Level 1 Highly Capable Individual - Makes productive contributions through talent, knowledge, skills and good work habits. 7 Copyright © 2009 Alampi & Associates, LLC Level 5 Leaders • Unwavering resolve to do what must be done • Every Good to Great company had a Level 5 leader during the pivotal transition years • They are cut from a different cloth • Jim Collins was not looking for this, he discovered it • George Cain of Abbott Labs fired family members 8 Copyright © 2009 Alampi & Associates, LLC Level 5 Leaders • Darwin Smith of Kimberly Clark, a stodgy old paper company, decided to “Sell the mills” and become a world class consumer paper goods business • Humility + Will = Level 5 • It’s about the cause, the work & the mission -not about the individual 9 Copyright © 2009 Alampi & Associates, LLC Level 5 Leaders (It’s Easier to Tell Who Isn’t) • Who first, then what – The genius with 1,000 helpers • David Packard and Bill Hewlett – “A” Players • Charisma is a disease – Strong standards – Not strong personality • We keep promoting the opposite • People – bus – seats 10 Copyright © 2009 Alampi & Associates, LLC How do You Become Level 5? • • • • • • • It’s an iterative process Fork in the road (1 you, 2 the cause) What would a Level 5 do? Track your question-to-statement ratio Be the last to speak Make sure everyone has answered your question Level 5 is a series of Level 5 decisions… 11 Copyright © 2009 Alampi & Associates, LLC Level 5? Look for one opportunity where you are confronted with a decision, where there is a fork in the road, and you have to decide about you or the greater good – take the Level 5 road… 12 Copyright © 2009 Alampi & Associates, LLC Healthy executive teams do not require every member to be a Level 5 leader. But the more each member understands what Level 5 is and undertakes the journey, the greater chance there is of a high-performance executive team. 13 Copyright © 2009 Alampi & Associates, LLC Leadership Teams Start with Level Five Leaders Who Have the Right Values 14 Copyright © 2009 Alampi & Associates, LLC Why Core Values? • Guidelines to behavior • “Moments of Truth” decision-making • Hiring 15 Copyright © 2009 Alampi & Associates, LLC Values-based Hiring Matrix H Values Alignment L H Experience & Skills 16 Copyright © 2009 Alampi & Associates, LLC Why Core Values? • • • • Guidelines to behavior Moments of Truth decision-making Hiring Annual performance appraisal 17 Copyright © 2009 Alampi & Associates, LLC Four Types of Values 18 Copyright © 2009 Alampi & Associates, LLC The Values Model Aspirational Core Values 19 Copyright © 2009 Alampi & Associates, LLC Leadership Teams Start with Leaders Who Understand Level Five, Have the Right Values and Focus on the Healthy Side of Their Companies 20 Copyright © 2009 Alampi & Associates, LLC Executive Leadership & Teams An organization needs to be both to be successful Smart Healthy -Strategy -Marketing -Finance -Technology -Less Politics -Less Confusion -Higher Morale -Higher Productivity -Lower Turnover * Source: Patrick Lencioni, The Table Group, Inc. 21 Copyright © 2009 Alampi & Associates, LLC Leadership - The Four Disciplines 3: OverCommunicate Organizational Clarity 1: Build and Maintain a Cohesive Leadership Team 4: Reinforce Clarity Through Human Systems 2: Create Organizational Clarity * Source: The Four Obsessions of An Extraordinary Executive, Patrick Lencioni, The Table Group, Inc. 22 Copyright © 2009 Alampi & Associates, LLC Teams Copyright © 2009 Alampi & 23 Who Said You Have to Be a Team? • • • • • • • • No requirement to be a team It’s very hard work Natural state is to be dysfunctional True teams make willing sacrifices to one another to achieve common goals that lead to joint rewards Teams confront behavioral issues readily Teams engage in positive conflict to get the best solution and gain commitment Teams keep their egos in check Teams put the success of the organization above any individual’s 24 Copyright © 2009 Alampi & Associates, LLC The Five Dysfunctions Copyright © 2009 Alampi & 25 Five Dysfunctions Overview Evidence Inattention to Status and Ego Results Avoidance of Accountability Lack of Commitment Fear of Low Standards Ambiguity Artificial Harmony Conflict Absence of Invulnerability Trust 26 Copyright © 2009 Alampi & Associates, LLC The Online Assessment www.tablegroup.com 27 Copyright © 2009 Alampi & Associates, LLC Team Assessment Source: www.tablegroup.com 28 Copyright © 2009 Alampi & Associates, LLC Team Effectiveness Exercise What does each of your colleagues do well (keep doing) and how could they make improvements for the team to be more productive. Name Do More Of/Keep Doing Needs to Improve/Stop Doing Feedback from my peers 29 Copyright © 2009 Alampi & Associates, LLC Summary • • • • • • • • Level 5 Leadership as a Prerequisite for a Team The Value of Values Model Smart and Healthy Executive Leadership Teams The Four Disciplines of Executive Leadership Teams The Five Dysfunctions Model Team Assessment and Report Tools Stop Doing/Keep Doing Exercise 30 Copyright © 2009 Alampi & Associates, LLC Sources • The Four Obsessions of an Extraordinary Executive, Patrick Lencioni • The Five Dysfunctions of a Team, Patrick Lencioni • Good to Great, Jim Collins • Built to Last, Jim Collins 31 Copyright © 2009 Alampi & Associates, LLC Contact Information Alampi & Associates, LLC 248.349.6045 office 248.869.6016 fax 248.342.7207 cell jim@alampi.com www.alampi.com 32 Copyright © 2009 Alampi & Associates, LLC