Your ROI in leadership character

Part of the ongoing struggle to convince companies to invest in developing and preserving the character of their leaders is the difficulty in measuring ROI.

Thank you Fred Keil of KRW International for quantifying the value of good character in leadership. Thank you HBR for sharing his findings:

Character is a subjective trait that might seem to defy quantification. To measure it, KRW cofounder Fred Kiel and his colleagues began by sifting through the anthropologist Donald Brown’s classic inventory of about 500 behaviors and characteristics that are recognized and displayed in all human societies. Drawing on that list, they identified four moral principles—integrity, responsibility, forgiveness, and compassion—as universal. Then they sent anonymous surveys to employees at 84 U.S. companies and nonprofits, asking, among other things, how consistently their CEOs and management teams embodied the four principles.

Note the traits they identified as the most important:

• Integrity
• Responsibility
• Forgiveness
• Compassion

In THE SENSEI LEADER I organize them a little differently, but these characteristics are at the very core of what it takes to be a courageous and compassionate leader––and that makes you an effective leader.

I’ve been preaching the importance of these characteristics for some time now, and people are responding. It’s no accident that my message of character centered leadership resonates more with good organizations––organizations that already see the value in continual development of these core philosophical competencies.

I can’t fix rotten characters––neither can you.

I do, however, believe that most people can learn, assimilate, develop and expand these characteristics––but only if they’re willing.

If they’re not willing––they should be fired.

Again, the struggle I’ve always had is proving the tangible monetary value. I’m not a process guy. I’m not a numbers cruncher. My expertise is in helping people become better people.

So what, exactly, is that worth?

When it comes to leadership, Kiel demonstrates that it’s worth a lot!

The researchers found that CEOs whose employees gave them high marks for character had an average return on assets of 9.35% over a two-year period. That’s nearly five times as much as what those with low character ratings had; their ROA averaged only 1.93%.

The HBR article notes that Kiel and his team were not expecting those impressive results. I don’t think most people would have. It doesn’t surprise me at all.

We’ve known for some time what type of leader attracts and retains loyal and engaged followers. Loyal and engaged followers are the most productive employees and effective managers.

This does not happen by accident.

It starts with leadership by example. Then you’ve got to provide opportunities for your people to cultivate, practice and articulate these characteristics. This means training and continual perfection of best practices and techniques––in the mindset and character of your leaders.

I found this part of the article particularly telling:

Do leaders who need to work on their character know it? In most cases, no—they’re pretty deluded. When asked to rate themselves on the four moral principles, the self-focused CEOs gave themselves much higher marks than their employees did. (The CEOs who got high ratings from employees actually gave themselves slightly lower scores—a sign of their humility and further evidence of strong character.) Fortunately, Kiel points out, leaders can increase their self-awareness through objective feedback from the people they live and work with. But they have to be receptive to that feedback, and those with the biggest character deficiencies tend to be in denial.

Humility––authentic humility, that is, is a powerful indicator of character and one of the most important traits for an effective leader. In THE SENSEI LEADER I wrote:

Humility is a quiet expression of reserve. You might not know with certainty that you’re going to win the fight, but you damn sure know you deserve to be in the ring.

Tempered by humility, your confidence is independent of the desired or expected outcome.

Humility is the quality that keeps your mind and heart open to input from other people, even from the people who work for you.

This is just one example of how character translates to tangible value for your organization.

This is the type of confidence that makes a leader attractive—whether that leader is in a position of authority or command, or standing shoulder to shoulder with you in the trenches.

This is the type of confidence that will make you an effective person and an effective leader at any level, whether you want to work in command and control or on the front lines.

And as we’ve seen from Kiel’s research, that emphasis on character can translate into a 5 fold return.

That’s a great investment!

Read the full HBR article here …

Why leadership programs fail- response to a McKinsey article…

From an article in McKinsey Quarterly titled; “Why leadership development programs fail”…

“Becoming a more effective leader often requires changing behavior. But although most companies recognize that this also means adjusting underlying mind-sets, too often these organizations are reluctant to address the root causes of why leaders act the way they do. Doing so can be uncomfortable for participants, program trainers, mentors and bosses, but if there isn’t a significant degree of discomfort, the chances are that the behavior won’t change.”

That’s right, change is usually uncomfortable and looking in the mirror might be the most uncomfortable thing you’ll ever do.

I’m not just talking about correcting a bad behavior either; it’s uncomfortable to change the status quo, especially when you think it’s working- or when you don’t realize that it isn’t.

A leader is an agent for transformation. It is your responsibility to take individuals and transform their efforts into a collaborative force for success. The most effective way to transform others is to lead by example- to model the behavior and level of performance you expect, and hope inspire in others.

Start with that mirror and become comfortable with being uncomfortable. You can’t change without discomfort- not yourself and certainly not others. It takes courage.

A big part of the problem is our natural aversion to pain and discomfort. This is a hard-wired survival mechanism and it works great when we touch a hot stove or eat something that makes us sick.

The bad news is this aversion to discomfort can also prevent you from straying from your cave to hunt for food when it’s cold outside- and it can keep you from growing as a person and as a leader.

The status quo sucks!

Seriously- you didn’t get where you are by sitting on your ass, not if you’re a leader. If you want to maintain your position and truly inspire and lead others, you’ve got to keep learning, growing and moving forward. You’ve got to embrace the continual process of self-improvement.

“Perfection is not a destination- it’s a never-ending process!”

In The Sensei Leader I wrote:

“When you truly lead by example, you are always engaged in the natural cycle of transformation. This cycle is as critical to an organization as it is to an individual. The leader’s role is to engage others in that process.”

I also wrote that “people follow examples much more willingly than they do orders.” Do as I say and not as I do just doesn’t work well for adults.

You know in your heart as well as your mind that your organization’s success depends on continual growth, development and innovation. You need and expect your people to learn, grow and develop. You expect them to change, adapt to change and embrace change.

You’ve got to start with you!

The McKinsey article continues…

“Identifying some of the deepest, ‘below the surface’ thoughts, feelings, assumptions and beliefs is usually a precondition of behavioral change- one too often shirked in development programs.”

Not in mine!

We hold up the mirror and expect you to take a good look.

The entire focus of a Sensei Leader workshop is to identify the human qualities and interpersonal strategies that help you become a more effective leader and finding out exactly where you need to build some muscles.

You’ve got to be willing to take a good look in the mirror and you’ve got to be willing to embrace the discomfort of training to improve.

One more from the article:

“Just as a coach would view an athlete’s muscle pain as a proper response to training, leaders who are stretching themselves should also feel some discomfort as they struggle to reach new levels of leadership performance.”

Effective training is sometimes painful and even frustrating. But- frustration is the well from which all wisdom springs, and as Hemingway wrote about pain:

“The world breaks everyone, and afterward, some are strong at the broken places.”

We call those people…

…leaders.

Photo of thoughtful businessman courtesy of ImageryMajestic and FreeDigitalPhotos.net

SPECIAL BOOK REVIEW: Fiercely Loyal by Dov Baron

Much of the crises in leadership today is the result of a widening rift between managerial or organizational styles and the true human expression of leadership. Dov Baron’s latest book, Fiercely Loyal, is closing that gap.

Striking a masterful balance between engaging stories and irrefutable research, Dov creates a template you can use immediately to become an authentic leader and attract followers who are Fiercely Loyal.

Knowing Dov, it was no surprise to me that he places a tremendous emphasis on the same characteristics of effective leadership that I do. Two of the most important are compassion and genuine courage. I knew we were singing in the same choir when Dov dispelled the commonly held belief that being an open and vulnerable leader is a mark of strength, not weakness…

“Despite what you’ve been taught, vulnerability is the very opposite of weakness; in truth, it’s all about courage. Make no mistake, for someone to be truly courageous, vulnerability must come first…

“On the other hand, real courage requires vulnerability. Real courage requires us to step into something where we cannot predict the outcome; something that, in some way, seems terrifying, not because we could die, although that may be part of how we feel, but because we feel we might receive the most painful of punishments—that of being rejected, disowned, and ultimately isolated.

“That’s why I tell you that real courage cannot exist without the risk of vulnerability!”

Throughout the book Dov validates the leadership lessons I learned as a Sensei…

I don’t think I’ve ever asked Dov if he studied martial arts, but he certainly seems like a black belt to me when he talks about two other key characteristics of a genuine leader, purpose and Mastery:

“A way to internally define mastery is our urge to get better at something, and then when we get better at it, to see if we can keep getting better. Even though it may make no logical sense, people will play musical instruments for hours each night and on the weekend just to get better. Most of these folks are not planning on becoming professionals, or even hoping to make any money from their skill, yet they toil toward mastery.

“Looking purely from the position of economics, an economist would have to ask, ‘Why are they doing this?’ It’s awe inspiringly clear. Working through the challenge of mastery gives us a deeper sense of contribution, and when we combine the desire for mastery with making a contribution, we ignite a deep tribal desire. Once again, we are part of something bigger than ourselves; we belong and we have value. Simply put, we do it because it brings about the sense of personal satis- faction that happens when we overcome a challenge, because it is fun, and most important of all, because it gives our lives meaning—and meaning, as you will see, is vital to creating a culture where your top talent is Fiercely Loyal.”

Ultimately, that’s what leadership is all about. The primary roles of a leader are to inspire the best efforts of others, direct their collective efforts toward a larger, collective success and most of all- to be a living example of personal and professional excellence.

I’ve been instigating some trouble at my events by telling people I can’t stand “Undercover Boss.” It’s an entertaining show, but it actually pisses me off that so many executives have absolutely no connection to people on the front lines.

I may include this excerpt from Fiercely Loyal in my slide deck from now on:

“Business is now, more than ever, a process of relationship. However, as I’ve said many times before, those relationships must be transparent, authentic, and genuinely caring. This also means face-to-face business, not just with your customers, but with everyone in and on your team.”

Leadership is a human expression- to my mind leadership is one of the highest expressions of human interaction.

As a leader, you can only honor that expression through compassion and caring and by being fully engaged, on the most human level, with everyone you serve. That’s the point Dov drives home in his powerful book.

You need a copy of Fiercely Loyal in your library…

…today.

Learn more about Dov Baron and order Fiercely Loyal here…

We’re too dependent on leaders…

From the introduction to Jim’s upcoming book: The Sensei Leader…

I don’t believe we’ve entirely lost the spirit of rugged individualism- but it’s sure as hell on life support!

For the first time in history, a nation was organized on the fundamental principle that the individual is superior to the state. The United States was founded on the idea that you are endowed with “inalienable rights,” and that it is the purpose of the state to protect those rights, not the purpose of the individual to serve king and country.

Has this experiment failed?

If we don’t want to be ruled by kings, czars or dictators, then we’ve got to accept responsibility for ourselves. If we want to be citizens instead of subjects, we’ve got to govern and lead ourselves.

Most of all, we’ve got to stop depending on leaders, in the sense of “others,” to fulfill every need, grant every wish and solve every problem. Our founders had the courage to reject the notion of a “mother” country to lead and govern themselves.

We’ve got reject the entitlement culture that looks to others, especially in the form of government, to provide for every basic need, grant every wish and solve every problem.

After all, didn’t we once write a pretty impressive document that started with the words; “We the People?”

People who make the most effective leaders are usually people who don’t want or need overbearing, paternalistic or authoritarian leadership.

These days we seldom rally around a leader with the courage to be honest when times are tough, or the leader who calls on our ingenuity and grit when we’re faced with the most difficult challenges or choices. Instead, we flock to the leader that promises easy solutions- or the charismatic leader who satisfies some misplaced and distorted yearning for paternal guidance and security.

It’s time to stop being a society of children and start building a culture of leadership again.

SPECIAL GUEST POST: 8 Leadership Lessons from a Marine Corps Drill Instructor

Special Guest Post today by Earl Breon, Jr.- lead author and founder of The Layman Leadership blog…

Those gravelly voiced, spit projecting, smokey bear hat wearing men and women who made your life hell for so many weeks were actually sages in disguise and I bet you never realized it. I know I didn’t until many years later when a buddy and I were talking about some of the stuff our Drill Instructors would say. Now, I went to Marine Corps Recruit Depot Parris Island (where real Marines are made) and he went to MCRD San Diego (Hollywood Marines) but our DIs had a lot of the same wisdom to share. Here are the eight that are actually safe for public cons:umption.

The only bad mistake is one you make twice!

This is one of the first phrases out of my Senior Drill Instructors mouth upon receiving to the new platoon. Make no mistake, he demanded perfection in every little detail but when you messed up you had better learn from it. You will always make mistakes.

The person who wins is the one that makes mistakes, learns and adapts his strategy.

Dark green, light green, we are all green!

Many people don’t consider the military a bastion of diversity, but it really is. Heck, one of my boot-camp friends was a Muslim. I’ll never forget when I had to stay back with him so he could roll out his rug and pray. It was so foreign to me at the time but it is one of the reasons I make sure people throw in the word “extremist” when talking about Muslim terrorists.

Race, religion, or economic background don’t matter, we are all green! Feel free to pick your own color or logo for your organization. Just be unified.

Yes, Sir? No, Sir? Say something!

Communicate, communicate, communicate! There seemed to be no greater offense than not communicating. If you were asked a question and didn’t answer, and answer quickly, this was the phrase that followed rather quickly. It was usually said much more, hmmm, colorfully than this.

Communicate, and when you are communicated with then be sure to respond.

Know our history and know your future!

Marine Corps history was a huge focus during boot-camp. That’s right; it wasn’t all running and learning to kill. They taught us history and other topics, as well. Granted, they were all military oriented. But, history was by far the most important.

When you understand what those before you have endured it frames your perspective on your current situation. When you know that approximately 520 Marines and Sailors repelled an entire Japanese fleet for 15 days (Wake Island) then a jammed copy machine doesn’t seem like such a big deal.

Act like you have a sense of purpose!

This phrase came out anytime somebody looked lazy or lost. There is no room for lazy and lost in highly successful organizations. You must believe you have a sense of purpose and contribute.

If you don’t have a sense of purpose right now then act like you do and one will show itself pretty quickly.

When one of you fails, all of you fail!

Teams do not thrive on individual success. Sure, there may be one or two with more talent than others but teams fail or succeed together. There is no way around it. Even when you think of somebody like Lebron James in Cleveland, yes, he carries the team but without the four other men on the court he could not beat five men.

A chain really is only as strong as its weakest link. Build each link to be as strong as possible.

Sunday to Sunday and chow to chow. That is how you make it through anything!

Take life in smaller more manageable sections. Yes, plan big and plan long term but don’t miss a turn because you are focused on the finish line. It is easy to get distracted by final results and miss crucial opportunities along the way.

Break life and life goals down into smaller, more manageable steps and stay flexible enough to incorporate new opportunities along the way.

Stay motivated!

Proper motivation is extremely important. It is, many times, the difference between opportunity being taken or being allowed to pass you by. It is also a key difference between success and failure.

Stay motivated and focused and achieve things you never thought possible.

About Earl Breon, Jr…

“I am passionate about leadership. From my first job as a kid, to the United States Marine Corps and through a career as a federal servant I have seen first hand the magic of great leadership as well as the tragedy of poor leadership. These hard learned life lessons are what inspired me to start blogging on the topic and help others become better leaders. My goal is to change the world by spreading leadership fundamentals in order to inspire a growth of leadership skills across all sectors. Pure and simple, the only way any problem gets solved is through effective leadership. I want to help solve problems.”

Learn more about Earl here…

Leader vs. Dictator – Willing followers…

Today’s post is an excerpt from the soon to be released book: The Sensei Leader

A leader is someone who has the ability to attract willing followers- emphasis on willing.

A dictator is someone who commands through fear, force or coercion.

There are charismatic dictators, and it is sometimes necessary to employ authoritarian tactics in leadership, however, in the long run the leader is the person who earns trust and loyalty and attracts people who follow of their own free will. Here control is not as much of a factor. As we’ll soon see, comfort with uncertainty is a powerful advantage and a significant determining factor in the development and success of a leader.

By contrast, the dictator is someone who inevitably resorts to brute force, and intimidation to forward his or her own agenda. Out of necessity if not by design, control becomes the essential guiding principle.

The leader is one who places the needs and ambitions of others in equal, if not superior position to his own. The leader understands that his authority is a product of the trust and consent of the people under his responsibility.

The dictator places self-interest, personal safety and selfish expediency above the care of others. The dictator does not attract followers, he rules subjects.

I found this wisdom in the wonderful compilation of leadership philosophy, The Leaders’ Companion by J. Thomas Wren. John W. Gardner, whose leadership resume includes service to six presidents paraphrasing Georg Simmel wrote:

“Leaders cannot maintain authority…unless followers are prepared to believe in that authority.”

The dictator can gain authority by fear or force, by coercion or deception, but dictatorship is difficult and expensive and in the long run, unsustainable. Without willing followers, there is no leader.

Gardner continues…

“One reason corporate and governmental bureaucracies stagnate is the assumption by line executives that given their rank and authority, they can lead without being leaders. They cannot. They can be given subordinates, but they cannot be given a following.

“A following must be earned.” (Emphasis mine)

The authentic leader serves the people.

The dictator believes that his authority is granted by some power other than the consent of followers and that his subjects serve him.

Leadership and the courage of a 12 year old girl

Today’s post is an excerpt from the soon to be released book: The Sensei Leader

Let’s get one thing straight from the start…

Courage is not the absence of fear. The absence of fear is stupidity.

Everyone, especially rational people, experience fear.  It’s natural. Fear is part of our survival mechanism. Fear is what separates the brave from the foolish.

Without fear, there is no courage. Any idiot can charge into trouble with no awareness of the risk or danger involved. Without an awareness of the danger, there is no courage. Courage is defined by your awareness of the risk involved.

Courage is your ability to face your fear and do what needs to be done in spite of it. Of all the qualities of an effective leader, courage is the most iconic, and the most expected.
People will forgive mistakes and transgressions, sometimes to a surprising degree. They’ll also very often overlook shortcomings, lack of knowledge and sometimes blatant incompetence and even deception.

People never follow cowards.

Remember- courage is not the absence of fear. People expect you to be afraid at times, but they always expect to to keep moving when you’re afraid. They expect you to carry the flag when they’re afraid…

…and sometimes when you’re afraid, they expect you to act as if you’re not!

I won’t sugar-coat it, there are times the ability to look and speak bravely when you’re scared are tremendously useful talents for a leader. However, what you do in the face of fear is infinitely more important than what you say, how steely your countenance or how hard you thump your chest.

One of the most impressive acts of courage I’ve witnessed, and I’ve seen my share, was the action of a 12 year old girl in my martial arts program…

Jennifer and all her siblings were students in my program. On this particular afternoon, her two younger brothers were scheduled for private lessons.

About the time their lessons were supposed to start, Jennifer walked in the door to tell me that her mother was not feeling well and asked if they could reschedule the lessons. I said sure and that I hoped her Mom would feel better soon.

Jennifer said thank you, but she looked very upset and nervous. She was a shy girl, but was always a ray of sunshine. I’d never seen her this way. I asked what was wrong with her mother.
She said she wasn’t sure- that Mom had been driving them to the center and just started acting strange. She had started weaving on the road and was having a very hard time focusing on her driving. She had also started talking funny. Jennifer knew something was wrong, but just wasn’t sure what it could be. At any rate, since they were almost to the center, they had just decided to stop in and then they were heading home.

I asked Jen where her Mom was right now. She told me her mother was waiting in the car- Jen was worried because it seemed like Mom couldn’t stay awake.

I knew for a fact that Jennifer’s mother did not drink- even if she did, I could not imagine her endangering her children. She is the mother that every other mother should pattern herself after.
She had recently had another child. As I shared earlier, I had been an Emergency Medical Technician. Immediately, I suspected Jen’s Mom was having a stroke.

I went out to the car to see what I could make of the situation. Mom knew who I was, but was making no sense. It was obvious that she was in distress and everything I could see validated my suspicions- I believed this was a stroke.

I took Mom into the building and called for an ambulance. Meanwhile, I asked Jen if she could help with the baby and the other kids. At this point, she knew the situation was serious and she was doing her best to fight back tears.

I’ve seen adults go to pieces in similar situations. Jen rallied, got the baby from the car seat and organized her brothers and sisters in the lobby. In the midst of this, I asked Jen if she could call her Dad. Unfortunately, Dad was out of town on business. Jen suggested we call her grandmother.

As we waited for grandma and the ambulance to arrive, Jen was the embodiment of courage. She remained calm and did her best to comfort her brothers and sisters, who were all visibly shaken by the scenario.

As classes were about to start, I also asked her to send in the first parent who arrived so I could ask that person to post a message on the door to close the center and so I could stay and monitor Mom until the ambulance arrived. She handled the entire operation like a veteran.

That kid never shed a tear- until after the ambulance left and her grandmother arrived to pick up the family.

Jen’s mother eventually made a remarkable recovery. Talking with Jennifer after the incident I came to realize how terrified she was that day, and how aware she was that something very dangerous was happening.

As scared as she was, she managed her fear and did what needed to be done. In my opinion, she acted more courageously than most people- of any age.