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Employees Must Have a Vested Interest in the Success of the Business

Robert Frost once said, “Isn’t it a shame that when we get up in the morning our minds work furiously—until we come to work.”

In the new economy, we need to equip people to think and act like owners. Everyone must come to work fully engaged and ready to make difference. A global revolution is under way, and it calls for gutsy leaders—people who can inspire knowledge workers idea merchants, and business innovator to exercise their own brand of leadership. The future belongs to those who use the power of culture to feed the entrepreneurial spirit.

Here are eight ways you can create a culture where people have a stake in the success of your business.

  • Employees Must Have a Vested Interest in the Success of the Business Recognize that ownership is more than a stock certificate. Ownership is a state of mind, a way of looking at the world and approaching work. Owners are people who step out from behind titles and job descriptions to act on behalf of the customer and the company. Non-owners hide behind position descriptions (“It’s not my job.”) and throw problems over functional walls (“Let me transfer you to…”) as an excuse for inaction. Owners cater to the purpose of the organization—its mission, vision, values, and strategy. Non-owners cater to the boss. Owners focus on the business results of their actions regardless of who is watching. Non-owners focus on the chain of command Owners ask the tough question: “How can we make it better?” Preoccupied with safety, non-owners gravitate toward the comfort of the status quo where things are more predictable and less disruptive.
  • Develop leaders who know how to liberate talent. Ownership is about giving people the freedom to act and removing the fears that cause lack of initiative. Unforgiving, zero-defect cultures foster cautious inactivity that kills the ownership mentality. People who don’t feel safe live under an umbrella of fear that makes them reluctant to make decisions, own problems, admit mistakes, take on projects, and act in ways that grow the business. When people cling to safety, they have no commitment to ownership; accountability vanishes, and self-preservation arises. Ownership is trusting that employees will operate with the company’s best interests in mind. Putting our trust in these people tells them that we think they are trustworthy. It suggests that we have faith in their character and competence. It boosts their self-confidence. Strengthen a person’s self-confidence and you strengthen his or her ability to think and act like an owner of the business. Herb Kelleher, Southwest’s chairman, says, “You build self-confidence when you give people the room to take risks and fail. You don’t condemn them when they fail. You just say, “We’ve just spent a good bit on your education; we hope to see you apply it in the future.”
  • Build a corporate culture of employee ownership Lay out the guiding principles. As a leader, you have to be confident that when the decisive moment comes, those who have assumed ownership will exercise common sense and good judgment. As the one assuming ownership, you have to be confident that what you are doing is the right thing because, after all, with ownership comes responsibility and accountability. Exercising good judgment and doing the right thing result from a clear understanding of the company’s guiding principles. Your firm’s business purpose and strategies, its mission, vision, values, and philosophy all define those principles. In essence, they create a set of helpful boundaries. When the boundaries are clear, employees have more freedom to step up, take action, and assume ownership for getting things done. When the boundaries are fuzzy, people get nervous and cautious. The result is a culture characterized by compliance instead of commitment.
  • Help people become business literate. When people understand how revenues and costs translate into profits, they become business literate. How many people on the front lines of your organization understand how the company makes money? How many of them are capable of reading a financial statement? If you asked them how much it costs to run their part of the business, could they tell you? How can we expect them to cut costs if they don’t know what those costs are to begin with? When people start asking cost questions, they are starting to think and act like owners of the business. The true experts are people at the point of action. Smart leaders open the books and equip these people with the financial information they need. When employees become business literate, they look for ways to drive costs down.
  • Make information relevant, fun, and interesting. The key to creating business literacy is getting people to internalize the information. If busy people do not see the information you put out as relevant, fun, and interesting, they are less likely to use it or be impacted by it. Information is relevant only when it is useful. If the salespeople at Sears knew that only three cents out of every dollar shows up as profit at the end of the day, they might be more passionate about watching costs and serving customers. Southwest Airlines’ annual profit-and-loss statement is written simply and illustrated with icons and cartoons, making it compelling to read and easy to understand.
  • 'The Truth About Employee Engagement' by Patrick Lencioni (ISBN 111923798X) Eliminate the “class” mentality. Leaders who are serious about leveraging the knowledge of every person must also eliminate the “class” mentality-socially prescribed or stereotypic boxes. This mentality undermines work in three ways. First, it strips the individual worker of his or her dignity and lowers morale. It essentially says, “We don’t believe in you enough to trust you with this information. It ensures that power resides at the top and widens the gap of inequality. Second, it doesn’t capitalize on people’s knowledge. The company pays for insight it never receives. Third, it crushes the entrepreneurial spirit. People stop caring, learning, and growing. When a financial statement is written so that only a CFO can understand it, forget about getting the frontline involved in a dialogue about cost containment. You breed compliance versus commitment. If your frontline people aren’t interested in reading a profit-and-loss statement, assess whether your information is too complicated or too mundane to capture their interest.
  • Show people how the business affects them personally. Most of the 18-year-old ramp agents at Southwest are business literate. They know that when they push a plane just 30 seconds late, that delay could translate into one hour and 45 minutes at the end of 11 flights in a day. Southwest would have to add 35 more planes at $30 million each to maintain its schedule. That could mean wage concessions, profit sharing, and lowered job security. They know how their job performance creates results, and how those results affect their lives. Southwest has made information relevant and interesting to its employees.
  • Give people a stake. Stock options and profit sharing can be powerful incentives to think and act like owners. However, just because people have stock options, they won’t necessarily think and act like owners. When you offer stock options and profit sharing without the culture to support these motivational tools it’s like putting new tires on a car that needs an alignment. When you add stock options and profit sharing to the rest of this list, you reward and reinforce people for behaving in ways that are consistent with an established culture. In doing so, you leverage the power of the incentive!

Build a corporate culture of employee ownership.

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Career Success Depends on Your Ability to Motivate Individuals and Teams to Get the Right Results

Nothing leaders do is more significant than getting results. But you can’t get many results by yourself—you need people to help you. And the best way to have others help you is by motivating them to accomplish results. The old paradigm, which says revenue growth and shareholder-value growth are interrelated, does not go far enough toward clarifying how the best companies produce value. Try using these three motivation principles.

Principle #1 of Motivation: Motivation is Material Accomplishment

Ways to Increase Employee Motivation “Motivation” has common roots with “motor,” “momentum,” “motion,” and “mobile.” These words represent movement and action. Motivation isn’t about what people think or feel but what they do. When motivating people to get results, challenge them to take those actions that will achieve desired results.

You will be more competitive when your people, instead of being ordered to go from point A to point B, want to go from point A to point B. They will “want to” when they believe in your leadership. This predisposition cannot be helped because of indispensable variances in the program designers’ backgrounds. But eventually, a single approach is too constricted. To design learning experiences that work, leadership training will have to integrate more meritoriously all four approaches into a solitary program. Consequently, leadership training has budged toward teaching managers and executives how to expect what is on their industry skyline and how to mobilize their organization to shape the future.

The first step in conscripting their belief in your leadership is for you believe in them and to value the work they do. Express your belief that they can get the results you are asking of them. Tell them how much you appreciate their hard work. For many companies, leadership training then basically befalls a quick-fix answer to greater problems.

But believing is not enough. Motivation means people take the precise actions they need to take to make happen what you want to have happen. Encourage people to write down three precise things that they need from you to help them get increased results.

Principle #2 of Motivation: Motivation is Propelled by Emotion

The Meaning of Motivation in Management Emotion and motion come from the same Latin root meaning “to move”. When you want to move people to take action, engage their emotions. People need a strong emotional commitment (motivation) to take action and realize the goal. The key is to visualize the future as having numerous possibilities and to develop intuition about relative probability by revealing ourselves to a wide gamut of successes and failures.

When I explained this to the chief marketing officer of a services company, he said, “Now I know why we’re not growing! We (senior leaders) established our marketing strategy in a bunker! He showed me his 40-page strategy document. The points were logical, consistent, and all-inclusive. It made perfect sense—to the senior leaders. But it did not make experiential sense to the people who had to carry it out. Since they had no input into the strategy, they disrupted the implementation in many innovative ways. Only when people are motivated—emotionally committed—to functioning the strategy, does it have a chance to succeed.

Principle #3 of Motivation: Inspiration is What Others Do to Themselves, Not What You Do to Them

You and I can’t motivate anybody to do anything. The people we want to motivate can only motivate themselves. The motivator and motivatee are always the same person. Leaders communicate, but individuals must motivate themselves. So, our “motivating” others to get results really entails our creating an atmosphere in which they can motivate themselves to get those results. On top of that, there is the very important role of setting direction and in communicating that direction.

Create the Right Climate to Motivate Employees For example, one leader almost encountered a mutiny when he presented next year’s goals—numbers much higher than the previous year’s goals. The staff went ballistic. “You expect us to get much higher numbers? No way!” He told me. “I know we can hit those numbers. I just have to get my people motivated!” I recommended that he create an environment in which his people could motivate themselves. So, he had them measure what activities got results. They discovered that they spent 60 percent of their time on work that had nothing to do with getting results. He then had them develop a plan to eliminate the pointless work. Once in charge of their own destiny, they got motivated! They established a great plan and started to get great results.

A good number of leadership programs have a half-life of a few days or weeks after the conferences close. Few have established passable transfer mechanisms to bring leadership skills back alive to the office, and most are captives of a single pedagogic method that imitates the teaching of their instructors.

Create the Right Climate to Motivate Employees

At the moment, there are adequate incentives for people to perform, based on the recognition that they accomplish what we thought they should to achieve. The point is that there are people to talk to who have an in-depth, long-term appreciation of the company and who know what is really going on.

Your career success depends on the ability of managers to motivate individuals and teams to get the results. The best ways to recognize others and celebrate accomplishments is best done by:

# setting high standards,

# discovering people doing things right,

# being innovative with rewards,

# acknowledging others in public, and

# personalizing rewards.

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Leadership Lessons from President Dwight Eisenhower

Leadership Lessons from President Dwight Eisenhower

President Dwight “Ike” Eisenhower, a graduate of the US Military Academy Class of 1915, set the benchmark for “Supreme Command” in coalition operations; the standards he articulated and personified in the 1940s continue to pilot senior military commanders. Even more profound than Eisenhower’s intelligence as a coalition commander was his impression in shaping state-of-the-art leadership principles for officers in militaries of a democracy.

One simple solution for surpassing limiting beliefs and making headway toward significant goals in our lives. Eisenhower knew what it took to lead soldiers and build cohesive units at the tactical level; he was passionate about leadership and leader development. Unity of Command was his simple establishing principle, but he knew that placing a single person in charge was insufficient to ensure unity. Today, leader advancement is the core mission component of the Academy.

Goals are about growing. A good goal causes us to grow and mature. That’s because every goal is about the journey as much as—even more than—the destination. And that’s exactly why setting goals outside the comfort zone is so imperative.

We gathered frequently in the dining room of Quarters 100—the elegant residence for 200 years of the Superintendent of the U.S. Military Academy at West Point—for spirited conversation on history, politics, and leadership. As the Academy Superintendent in the late 90s, we relished this give-and-take. We brought to the Academy some of the best thinkers on leadership; the supper conversation reflected the energy of the participants. A recurrent question was this: “Whom do you regard as West Point’s most distinguished graduate?”

Dwight Eisenhower: History, Politics, and Leadership

The menu of alumni was a rich one: Grant, Lee, MacArthur, Goethals, Groves, Pershing, Bradley, Patton, and Eisenhower, among others. The agreement seemed always to focus on one graduate: Dwight D. Eisenhower, USMA Class of 1915, for his intense command of allied forces in the European theater during WWII. Eisenhower set the standard for “Supreme Command” in coalition campaigns; the principles he expressed and personified in the 1940s continue to channel senior military commanders.

Dwight D Eisenhower: History, Politics, and Leadership Lessons Even more profound than Eisenhower’s brilliance as a coalition commander was his influence in shaping modern leadership principles for officers in armies of a democracy. The strength of a memory is also determined by the emotional state that accompanied the original event. Without question, Eisenhower had no equal in stroking, cajoling, and managing prickly alliance personalities like Churchill, Montgomery, de Gaulle, Admiral Darlan, and Italian Marshall Badoglio—to say nothing of his challenges with George Patton. He was the consummate Supreme Commander.

The eloquent text above is simply for your benefit. It’s not actually part of the template. These beings are kenned by the adepts to be magnetized toward certain quarters of the heavens by something of the same abstruse property which makes the magnetic needle turn toward the north, and convinced plants to comply with the same magnetization. In such a way there is impermanent meaning and true meaning.

Fear usually plays a part in the decisions we make. Probably the biggest fear that you will have to face when making a decision is that of failure. Obviously, the bigger the decision, the greater the downside if it doesn’t pan out. Eisenhower also knew what it took to lead soldiers and build cohesive units at the tactical level; he was passionate about leadership and leader development. As a result of his submissions to Army leaders, Eisenhower influenced not only the formal leadership program of the U.S. Military Academy, but also the leadership ethic for young officers commissioned after 1945. Likewise, feelings, recognitions, volitions and consciousness are empty.

Dwight D Eisenhower: Situational Leadership

Dwight D Eisenhower Situational Leadership

Dwight Eisenhower’s leadership was is often a value judgment that varies from person to person and for one person from situation to situation. We call it situational leadership:

  1. Be mellow in manner, tough in deed: Eisenhower had a paperweight conspicuously exhibited on his desk with a Latin engraving meaning “gently in manner, strong in deed.” These are known as secret or insight activities. This reflected his philosophy and style. He was not full of bluster. He never threatened. This is the way of insight.
  2. Be a guide, not an initiator: Eisenhower once expressed leadership as “the art of getting someone else to do something you want done because he wants to do it.” This is the field of merit of beings. By vigilant organization and a premeditated crafting of words to hit the right note. When practicing, it is sufficient to just keep your mind on the method. He knew the importance of words— specifically those spoken by the person in charge—to motivate and persuade. There is another problem with the first cause argument. He believed in planning. He thought it was dangerous for a leader to shoot from the hip. We should take this to heart.
  3. Don’t talk too much: Even with no infirmities, the life of beings is passing. Some people just can’t help themselves and simply start prattling (luckily this didn’t happen to me). Either they’re nervous about figuring out the right thing to say, or they’re panicky about saying the wrong thing. And this full clarity is beyond inner and outer. But, when you talk too much the anguished person will sometimes begin to feel that they must take care of you.
  4. Know what you don’t know: Eisenhower cherished that his completest resource was not his own brilliance but the talent of his team. It frees a tremendous energy. He once wrote this piece of advice: “Always try to associate yourself with and learn as much as you can from those who know more than you do, who do better than you, who see more clearly than you.” And he understood that autonomy can be defined as the ability to make choices according to one’s own free will. He was a collaborator; and if no such challenge developed in that time, he would presume to be there by right, even though he might not have any life story.
  5. Don’t let success go to your head: Eisenhower never considered himself to be a hero when compared with the men who landed at Normandy and met the enemy on the bloodstained fields of battle. Soon after the war, he called on General Douglas MacArthur, his old boss, in Japan. MacArthur, impelled up about their success, crowed that as vanquishers either one of them could surely be elected president. It was reported that Eisenhower left that meeting red-faced and angry. He loathed the hero label. When years later he did become president, he was repeatedly disapproved for not being personally dynamic or out in front. He was lavish about letting those around him take the recognition for his ideas. This approach paid off in allegiance and execution. And many made great sacrifices to attend, frequently working his way through military.

In both arenas—supreme command and officer leadership—Eisenhower was a revolutionary. Before him, no U.S. commander had been entrusted with coalition command. General Pershing fought to maintain the integrity of U.S. forces as commander of the American Expeditionary Force in WWI, but he was subordinate to the French Commander-in-Chief; Eisenhower led allied forces from fall 1942, and by war’s end, had over four million men from five nations under his command. His approach to combined command complemented a sophisticated coalition leadership model—a model employed to this day.

Dwight Eisenhower: Unity of Command

Unity of Command was his simple organizing principle, but he knew that placing a single person in charge was disappointing to ensure unity. This had to be exercised through “earnest cooperation,” earned through “patience, tolerance, frankness, and honesty.”

Unity of Command: Leadership Lessons from Dwight Eisenhower Commanders in the 1990s, General George Joulwan in Bosnia and General Wesley Clark in Kosovo, achieved coalition success despite intra-alliance arguments by sticking to Eisenhower’s maxims. Similarly, two Central Command combatant commanders, Generals Norman Schwarzkopf and John Abizaid, profited from the trailblazing experiences of Eisenhower. Schwarzkopf exhibited a knowledge of alliance understandings and alliance politics by deftly managing more than 30 combination partners in Desert Storm. He clearly personified unity of command. But he knew this could never be effectively exercised unless he had consent of those he led, particularly his Arab partners, and most visibly, the Saudis. Again, Eisenhower’s coalition leadership principles proved decisive—and enduring. And they are reflected in the leadership exercised in 2005 by the Coalition Commander in Iraq, General John Abizaid, a student of the leadership of Eisenhower. After his discussion, his wish got him thinking about which of the three ways we die is actually best.

That these practices are connected with the proper kinds of beings and times is important. Besides transfiguring the doctrine of collective command at senior levels, Eisenhower was zealous about leadership development for junior officers. What he observed in the behavior of many U.S. officers in the European theater disturbed him greatly. Too many officers never identified with their soldiers; they were too eradicated from the needs of their troops. Further, Eisenhower was appalled by the behavior of officers who substituted screaming, even physical abuse of subordinates, for positive leadership. Eisenhower said, “You don’t lead by hitting people over the head; that’s assault, not leadership.” Life cannot be real if relationships are not real.

West Point Curriculum: Practical and Applied Psychology

Eisenhower felt that the West Point curriculum should include coursework in practical and applied psychology to “awaken the cadets to the necessity of handling human problems on a human basis,” and thereby improve leadership in the Army.

Eisenhower’s suggestion was soon followed by the establishment at the Academy of the Department of Behavioral Psychology and Leadership. For more than 50 years, it has instilled in cadets the principles of small unit leadership.

Instead of ignoring parts of the orchestra, a symphonic life of Dwight Eisenhower consists of five habits that ensure harmony:

  1. Anyone who has the self-control to steep his noetic conceptions in them may be sure that in a shorter or longer time they will lead him to personal vision.
  2. If your culture supports open dialogue and learning from mistakes, public commitments and public results can fire up morale.
  3. Contrary to the popular exhortation, people do judge books by their covers. That’s why it’s important we select the right one for this book.
  4. The moments of break-through where real change happens aren’t typically instant and extraordinary. They usually happen gradually in the ordinary course of our lives.
  5. One of the most obvious things about the future is that we are not there yet. The question for us as we start a small unit leadership is whether to drift or direct our lives where we want them to go.

U.S. Military Academy at West Point Today, leadership development is the core mission component of the Academy. The emphasis is on values, inspiration, and imagination. Eisenhower knew these could not be created in the cerebral equivalent of a strait jacket, with rote, mechanical instruction disconnected from the human problems of the individual soldier. In other words, we need to think about what we want to be true of us when it’s all said and done. Once that picture is in mind, we review the steps that journey requires and live them forward. Then comes the hard part.

The Supreme Commander who associated with his troops shaped the leadership ethic of my generation. Eisenhower took the time to write to parents of his soldiers, to talk to 101st Airborne Division paratroopers prior to their DDay jump, to prescribe leadership doctrine while he commanded millions. He was, in short, encouraging. And he personified the essential bond—trust. His soldiers trusted him because he exuded the values of integrity and respect—values that remain the core of our Army’s leadership principle.

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Adapting to Change and Managing the Transition Successfully

Life is about adapting to change and ever-increasing demands. William Bridges was right: “It’s not the changes that do you in. Ifs the transitions.”

Organizations must continually change. The question is “how?” The leader’s task is to make change work by helping others through transition.

A successful transition …

  • Explains what is and what isn’t over. Some things never change: You will continue to serve customers and produce products. What changes is not what you do but how you do it. Help people identify what is and is not over.
  • Respects the past. The practices that frustrate you today were someone’s innovative solutions of the past. Do not criticize widely accepted practices. Accept them as right for that time while recognizing that times change.
  • Ensures the “important stuff” continues. What is the important stuff to you? Service? Ethics? Whatever it is, it must continue. Involve others in defining the “important stuff” and ensure that the change does not disregard them. This increases support for the change.
  • Sets the stage for the future. Today’s change will open your eyes to new opportunities. As you evolve, set goals for what you want to achieve. Measure and evaluate progress. And, show others how the change will move them toward a positive future.
  • Recognizes its day will end. Don’t assume that today’s solution will work forever. And don’t think that this will be the last change.

Long-term success depends on anticipating and responding to change and making the transition.

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