The Ten Virtues of Outstanding Leaders

Leadership and character are inseparable. In the Ten Virtues of Outstanding Leaders, philosophers Al Gini and Ronald Green, ask what is good leadership? They insist "that ethics, character, and virtue are essential to real leadership" and anything else is misleadership.

They define leadership as:

Leadership is not just a set of learned skills, a series of outcomes, a career, a profession, or a title. Leadership, at its core, is about character: specifically, a character attuned to its ethical responsibilities to others. The kind of character that, in regard to others, always tries to do the right thing, for the right reason, on purpose.

They suggest ten virtues or traits of character and as such they describe not just a leader's behavior but a clear sense of the way a leader thinks; the beliefs and motivations behind their actions. They note that these virtues are fragmentary in that they can exist apart from one another and rarely does any leader possess all of them.

1. Deep Honesty. Not just truth-telling but a bias for the truth. "It describes the leader's basic commitment to the truth, and a sense of shame or anger when deceitfulness replaces truth-telling." (James Burke, Johnson & Johnson)

2. Moral Courage. "Here one confronts a multitude of things that terrify people: fear of criticism or embarrassment; fear of poverty or job loss; fear of losing friends or being ostracized—even fear of being seen to be in the wrong. Overcoming self-doubt can be an expression of courage." Courageous leaders hold fast to their values and purpose even when there is no certainty that they will prevail. Courage is of particular importance because unlike the virtue of honesty, is not an aim in itself but it supports other moral claims. As such, philosopher Robert Merrihew Adams describes courage as a "structural virtue." (Abraham Lincoln and Rosa Parks)

3. Moral Vision. Great leaders not only "exhibit moral courage, they are also able to understand the meaning of the values they fight for and the importance of ethics in both human life and in the life of organizations and communities." They understand the consequences of ethical values and are able to share it with others. (Winston Churchill)

4. Compassion and Care. The ability to connect with and resonate to the needs of their followers. Leadership is a relationship. (Oprah Winfrey)

5. Fairness. Leaders should be fair in executing policies across the board. Fairness reinforces followers' trust. Everyone is special but not different. (Dwight D. Eisenhower)

6. Intellectual Excellence. Great leaders are teachable. They listen. "The vice that corrodes leadership, is self-sufficiency: a smug lack of interest in new information and the dismissal of others' opinions, especially when they challenge one's own views." (Franklin D. Roosevelt)

7. Creative Thinking. A tendency toward independence and creativity in thinking. It may show itself "in new ways of accomplishing organizational goals, and even of redefining those goals." In periods of great change a "premium is placed on leaders who can come up with original solutions or approaches." (Herb Kelleher)

8. Aesthetic Sensitivity. This virtue is not just an appreciation of the creation of beauty, but an ability to leverage it for the organizations advantage. "By paying attention to the aesthetic dimensions of their enterprise, outstanding leaders pioneer new products and services and actively shape the tastes of millions." (Steve Jobs)

9. Good Timing. This, like courage, is another structural virtue. It is necessary for the pursuit of any worthy goal. "Like deep honesty, good timing defies superficial outer appraisal. A leader who waits the precise moment to act may appear indecisive to those who urge a quicker response. Such a leader must also have the courage to weather criticisms." (Charles de Gaulle)

10. Deep Selflessness. The willingness to sacrifice oneself. In moments of great organizational uncertainty or crisis, a leader's self-sacrifice "could send a clear message as to what kind of conduct is needed to overcome the crisis and how earnestly the leader is committed to the cause of the organization. It conveys to followers the leader's strong conviction that 'we can do it,' and is an earnest invitation to participate." (Martin Luther King Jr.)

In the second part of the book they explore the meaning of each of these virtues through the lives of leaders that lived and exemplified them. "Virtue is learned," write Gini and Green, "by witnessing the deeds of others."

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Posted by Michael McKinney at 11:33 PM
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Three Rules to Deliver the Best Possible Performance for as Long as Possible

Michael Raynor and Mumtaz Ahmed went looking for those companies that were good enough for long enough to be considered exceptional and to rule out luck as the primary source of their performance. What they found they present in The Three Rules: How Exceptional Companies Think.

When they looked at behavior they found that the exceptional companies did better than the average companies because they did whatever they did "right." Not too helpful. But when they looked at what exceptional companies thought as opposed to what they did, a pattern emerged. They were able to identify a small set of decision rules implicit in the choices exceptional companies made that lower-performing companies did not seem to use. This forms the basis of The Three Rules.

Here are the three rules you can use to guide your own decision making:

1. Better Before Cheaper. Competing on non-price value, not price. When it comes to how you differentiate yourself from the competition, seek out a position based on non-price value. Do not compete on price. Price-based competition can work, but only rarely does it drive exceptional performance.

When the recession hit in 2008, Abercrombie & Fitch (one of their exceptional companies) was criticized for not cutting their prices as most other retailers did. And although their profitability suffered significantly in the short-term and full recovery remains an uphill climb, they are not struggling to cure their customers of a "discount addiction." "Those competitors that coped with the recession with price discounts are finding it difficult to increase their prices, having taught their customer that their T-shirts do not have to cost $30 after all."

Of course, no company can afford to ignore its relative price position. That's why the rule is "better before cheaper:" being price competitive is far from irrelevant, but when it comes to position in a market, exceptional performance is caused more often by greater non-price value rather than by lower price.

2. Revenue Before Cost. Outperforming through higher revenue rather than lower costs. When exceptional companies face a trade-off between increasing profitability by increasing revenue or by decreasing cost, they systematically choose increasing revenue even if that means incurring higher cost. Do not try to "cut" your way to greatness. Just like price-based competition, cost advantages can be effective, but only infrequently. Profitability advantages driven by higher revenue, even when they incur higher cost, prove to be more valuable than advantages driven by lower cost.

"To beat the odds," say the authors, "you want to focus on creating value using better before cheaper, and on capturing value with revenue before cost."

3. There Are No Other Rules. Whatever competitive or environmental changes or challenges you might face, do not give up on the first two rules. Everything else is up for grabs. Everything. The first two rules tell you what you should do. The third rule tells you what you should not do; namely think that anything else matters in a systematic, specifiable way. Change whatever you must about your business—your markets, your technologies, your people…anything. But no matter what, stick with better before cheaper and revenue before cost.

What sort of leadership contributes best to corporate success: charisma, hard-driving, larger than life CEOs who move the company forward seemingly by force of will, or humble, deliberate, share-the-glory servant-leaders? As far as we could tell, all that mattered consistently was whether or not leadership was focused on building a non-price position and revenue-driven profitability formula.

The idea here is that when faced with strategic decisions, ask yourself which option best conforms to the three rules. Use the rules like a compass to point you in the right direction. It's not a formula to follow but a way of thinking that informs your decisions. Ask yourself if your strategy is taking you in the direction of better and revenue or cheaper and cost. The authors have found that companies that consistently chose the former path deliver superior results.

The three rules are measurable and hence actionable. "Because you can measure the degree to which you are following the three rules, you can adapt your behavior to remain consistent with them."

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Posted by Michael McKinney at 12:02 AM
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Try to See Things My Way

This short film is from storyteller Jason Headley. It's titled It's Not About The Nail. "Don't try to fix it. I just need you to listen." Every man has heard these words. And they are the law of the land. No matter what.

Posted by Michael McKinney at 09:13 AM
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Balance: The Business—Life Connection

In Balance, James A. Cusumano reflects on his five careers as the lead singer of a rock band, an Exxon research scientist and executive, a Silicon Valley entrepreneur, a filmmaker and a luxury hotel owner. Through it all he points to people who helped him along the way and pointed him in the right direction. Their perspective helped keep his life in balance.

We can all make a unique contribution with the specific set of skills we came into this world with says Cusumano and "there is no greater personal satisfaction on this planet than being in the thick of doing so."

To find your passion and purpose, you have to answer four questions:

1. What do I love to do so much so that time passes incredibly quickly?
2. What work do I do or have done in the past that I do not consider work?
3. What could I do that would create the greatest value for the world around me, as well as the greatest personal satisfaction for the amount of time spent?
4. What is my unique ability, the skill or skills which, if truly actualized, could provide significant benefits to the organization for which I work and to me?

He believes that 80 percent of his success was based on his early discovery of his fundamental essence—his life purpose—that was fueled by the energy of passion and guided by the "giants" in his life.

Passion fuels your creativity and the process provides a deep sense of gratitude and "gratitude always leads to long-term fulfillment and happiness. The greater your sense of gratitude, the greater your level of happiness."

Cusumano provides eight principles for building a successful business:

1. Have a skilled CEO who embraces and is committed to Inspired Leadership*, and has a deep sense of how to create a challenging, far-reaching, yet realistic company vision and mission. The CEO creates the dream; committed employees embrace and embellish it.
2. Achieve passionate buy-in of this vision and mission from all key stakeholders—customers, employees, investors, suppliers, and the community.
3. Coach employees on developing corporate values to which they are firmly committed.
4. Hire the right people for the right positions at the right time—and compassionately and quickly ask those to leave who do not work out.
5. Address a growing market, better yet, create one. Don't waste your time on dying markets.
6. Focus strictly and passionately on the best opportunities. You can't do everything.
7. Plan for an early commercial success—even a modest one. Hit a few singles instead of trying for all home runs.
8. Have a strategic plan but stay flexible. For maximum effectiveness, the plan should be understood and embraced by all employees.

*Inspired Leadership is based on the CASTLE Principles, an acronym for Courage, Authenticity, Service, Truthfulness, Love, and Effectiveness developed by Lance Secretan. Inspired Leadership is a serving relationship with others that inspires them to grow and reach their innate human potential and in doing so they not only exhibit outstanding performance and thereby contribute much more to their company, but they also make the world a better place. Inspired Leadership is not a model, or a formula, or a system, or a process. Instead of doing something to someone, Inspired Leadership is a way of being and it comes from within.

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Posted by Michael McKinney at 11:30 PM
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The Clarity Principle

The Clarity Principle by Chatham Sullivan, is about a widespread issue facing many (most) organizations: who are we and what are we doing? What is our purpose? It is a vitally important question that is rarely answered—not really. It's a difficult question to answer and is the cause of much of the dysfunctional, painful and absurd activity in many organizations. Instead of leading we are being lead by the business we are supposed to be leading.

The Clarity Principle states that clarity is derived from purpose, and purpose from a pivotal act of choice that leaders make about the business. Sullivan says that the problem isn't that organizations define themselves incorrectly, it's that they don't choose at all. Choosing "is a risky prospect, fraught with personal, political, and cultural risks for the organization and its leaders." Leaders often "duck their responsibility for choosing because they cannot accept the tradeoffs, risk, and loss that accompany an act of commitment to choose one definition of the business over the other."

A purpose is not necessarily set in stone especially in today's business climate. "Companies do and should reinvent themselves. But there is a big difference between redefining your purpose and attempting to stitch together conflicting business models." He adds, "attempting to simultaneously preserve and replace the core is very likely a fool's errand. There is only so much artful balancing a company can endure. The goal of achieving balance between contradictory models often becomes the biggest excuse for failing to make the bigger choice."

We may avoid the choice out of a desire to protect the organization and its people—to maintain a perceived stability and collegiality. To address one choice over the other would disrupt the way in which people have become used to operating. But in the long run, this silence will end up hurting the organization.

Sullivan writes that "Leadership's primary responsibility is to define the purpose of the business. This means understanding and making choices to resolve strategic dilemmas confronting the organization."

We see dysfunctions in the business not merely as "people problems" but as upwelling expressions of larger foundational business dilemmas. Thus what may at first appear to be a turf battle between two departments is really descended from a persistent failure to clarify the company's purpose or a painful fight with a coworker is less a personal failure or conflict of styles than evidence of an important strategic dilemma.

Corporate life so often disappoints writes Sullivan, because "the loss of shared purpose makes the experience of business feel as though it's every man or woman for him- or herself. People who feel disconnected from the primary task of the business become isolated from one another."

Sullivan provides numerous examples of conversations that have gone on inside companies in search of their purpose. Their struggles can be quite enlightening and helpful in determining our own.

What if you're not the CEO? Take responsibility for those things within your ability to control.

Acts of small leadership can thus have outsized impact. They perform the role of making monumental undertakings more easily achievable. In truth, you don't have to be a top executive to resist, confront, and even reverse the contagious effects of a crisis. If the conflicts in the business can flow down from on high, generating breakdowns throughout the organization, so too can creative solutions and purposeful action flow upward to help resolve the crisis.

What you can do:

1. Be attuned to the dynamics unfolding around you
2. Feel a sense of responsibility to the community
3. Remain faithful to the principle of doing the right thing instead of just going along.

The issues addressed in this book will resonate with most of us. "The battle against ambiguity is never ending," says Sullivan. Choice defines and establishes that some things are more crucial than others. It's the leader's job.

Just when you think you have defined your purpose, a book like The Clarity Principle comes along and pulls you up short. Maybe you're not there yet. Turf wars, low morale, bad politics, and misguided strategies: these are issues that claim much of a leader’s time. But this parade of dysfunctions and messy “people” problems actually points to an organization confused about its core business, torn between competing ideas about what it is and wants to be—an organization facing an identity crisis.

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Posted by Michael McKinney at 11:36 PM
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First Look: Leadership Books for June 2013

Here's a look at some of the best leadership books to be released in June.

  How to Change Minds: The Art of Influence without Manipulation by Rob Jolles
  Icons and Idiots: Straight Talk on Leadership by Bob Lutz
  The Great Degeneration: How Institutions Decay and Economies Die by Niall Ferguson
  The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business by Rita Gunther McGrath
  Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry by David Robertson and Bill Breen



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Build your leadership library with these specials on over 120 titles. All titles are at least 40% off the list price and are available only in limited quantities.


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Posted by Michael McKinney at 10:05 AM
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LeadershipNow 140: May 2013 Compilation

Here are a selection of tweets from May 2013 that you might have missed:

• Why Managers Haven't Embraced Complexity by Richard Straub - HBR
• Leadership Lesson: The Difference Between Google and Apple by @mikemyatt
• Good advice from @wallybock: Ideas are like the rain
• Seven Tips for Taming Your Calendar by @scotteblin
• Making The Case For Creating Meaningful Work by @TanveerNaseer
• From @stratandbiz: Neuroscience insights into Decision-Making & Self-Awareness. A Mind-Set for Success
• From DDI > When It Comes to Leadership, All Conversations are Crucial by Mark Busine
• Why Your Team Matters More Than You - Forbes
• @edoakley: "What Managers Must Do" by @JohnBaldoni
• What We Don’t Know We Don’t Know by @LollyDaskal
• Mike Henry Sr: Innovation: a Case for Entitlement (really!)
• Knowing Yourself: Do you have the right (leadership) stuff? by @MartinaMcGowan
• FT: Walking away is often the best option
• What Do You Talk About With Your Team? by @stevefarber
• The Duality Of Leadership by @LollyDaskal
• From @wallybock: Leadership might be a bad choice for you if ...
• From @tomasacker: Do you want to succeed?
• How to Get Past Conversational Smoke and Mirrors by Susan Mazza
• 6 Things Exceptional Leaders Do Better from Inc.
• From @jamesstrock: Churchill's Leadership Moment May 10 1940 | One Day, One Man
• Dealing with Your Incompetent Boss
• Entrepreneurs: Step Away from the Energy Drinks by @BarbaraMendez
• Good Read > 10 Things I Learned the Hard Way About Leading by @artpetty
• Honor Yourself by @LollyDaskal
• Leadership Insights from 30 experts by @DebbieLaskeyMBA
• The Top 25 Most Engaged Brands On Twitter Today
• Nine of the Best Ways to Boost Creative Thinking
• So what defines global companies and leadership in the 21st century? by kjaerglobal
• How to be an Encouraging Leader? by @tshnall
• Don't Go with Your Gut by @leadershipfreak
• Don't Solve Your Problems by @LollyDaskal
• GE's Jeff Immelt on Leadership, Global Risk and Growth - Knowledge@Wharton
• 11 Profiles in Bad Leadership Behavior from @CIOonline

See more on Twitter.

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Posted by Michael McKinney at 12:41 AM
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5 Leadership Lessons: The Manager and the Monk

The Manager and the Monk is one of those books that comes along every now and again, that will shape and inspire your thinking. It is a deeply philosophical book with very practical applications. The book is essentially a conversation between Jochen Zeitz (@JochenZeitz), the former Chairman and CEO of Puma, and Father Anselm Grün, the financial manager of the Münsterschwarzach Abby near Würzburg, Germany. Zeitz is also co-founder and co-chair with Sir Richard Branson of The B Team.

Together Zeitz and Grün discuss important topics like success, culture, values, acting ethically, the environment, commerce, sustainability, strengths and weaknesses and awareness.

The book reflects their concern to think beyond the immediate concerns of business to how decisions could affect other people and the environment around them. "We should always be aware of the effects of our decisions." In the moment, it is often hard to remember that principle. Here are several thoughts from the book:

  On Leadership: Even in monasteries, one has the illusion that small communities need no authority and that they can lead themselves. But that's a mistake because where there is no clear structure, informal power structures will develop on their own. Then the most assertive Brother will assume leadership, but if his power is not clearly established, he will only exercise it when doing so benefits him. When he is supposed to assume responsibility for the community, however, he will refuse and draw back so that he has no official leadership role. Such unclear power structures are not good for either the community or a firm.

  On Culture: Regarding culture, in my opinion, the most important leadership goals include integration, an open exchange of ideas, building confidence, and striving for greater equality. A leadership culture also has to be fun, and it must promote meaningfulness and innovation, regardless of how close to the wind you may sail sometimes.

  On Hope: No one can lead a company or corporate group without having hope. Hope is something different from expectation, because the expectation I have for a person or a company can be disappointed. Hoping, on the other hand, means: "I am hoping for you and about you." Hope can never be disappointed, because I will not give up hope that another person will be able to change himself.

  On Acting Ethically: They think that I can solve all problems, that I have always been kindhearted and understanding in dealing with others, and that I am always in harmony with myself. I realize that I must protect myself against such projections, for they are not good for me. They idealize me. If I were to identify myself with these projections, I would become blind to my weaknesses and would come to a standstill.

  On Responsibility: Supervision limits the responsibility of every individual, but as human beings we cannot entirely do without it. Every person can and must have freedom in his work as in his life as a whole, in order to be able to assume responsibility. Every individual needs responsibility, for without it he loses interest and joy in his activities. We say that a person "takes on" responsibility. When we have the feeling that we can assume still more responsibility, then in my opinion we will find the means and ways to do this.

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Posted by Michael McKinney at 08:01 PM
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Change with Confidence

Change with Confidence by Phil Buckley is a great handbook for working through a big change project. The book is organized around 50 critical and practical questions change leaders ask.

The examples provided throughout the book mostly reflect his experience as co-lead in the global integration of Kraft and Cadbury. I think that this is some of the hardest change to lead because you are not just merging systems and processes but different organizational cultures. He reflects on the critical issues and the analysis is quite helpful.

Buckley's approach is people-centered and emphasizes the responsibility of change and organizational leaders. Not surprisingly, the first question considered is "What do I bring to the project?" Knowing the answer helps you bring confidence and resolve to the change project.

Buckley writes:

Many change leaders don't realize that the people who must adopt the changes are the ones who control the long-term success of the project, and if they don't take on new ways of working (and stick with them), the project will ultimately fail and most benefits will be lost. Therefore, the best strategy for ensuring success is to work with people and make sure they have everything they need—including respect, encouragement, information, tools, and the opportunity to shape the change to fit their environment.

If leaders don't change first, the people actually being asked to do the heavy lifting won't either. I have seen change leaders attempt to force changes through fear and threats. This might work in the short run but always fails over time. A forced change loses steam as soon as the pressure is removed.

Importantly, Buckley also deals with questions such as, "How do I manage my day job, change project and life?" Not only will change projects test you as a leader in both your abilities and self control, they will eat up as much time as you give it. "A reasonable life balance will help you stay focused on all of your priorities."

This book can help any change project from beginning to end and help you grow as a leader in the process.

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Posted by Michael McKinney at 11:50 PM
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