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ACHIEVING BUSINESS EXCELLENCE Understanding the Pattern of Business Success

Achieving Business Excellence - OPIE Choice Network · Achieving Business Excellence Adapted from: The Five Dysfunctions of a Team by Patrick Lencioni The first dysfunction is a lack

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Page 1: Achieving Business Excellence - OPIE Choice Network · Achieving Business Excellence Adapted from: The Five Dysfunctions of a Team by Patrick Lencioni The first dysfunction is a lack

ACHIEVING BUSINESS EXCELLENCE Understanding the Pattern of Business Success

Page 2: Achieving Business Excellence - OPIE Choice Network · Achieving Business Excellence Adapted from: The Five Dysfunctions of a Team by Patrick Lencioni The first dysfunction is a lack

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Achieving Business Excellence

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II>EI

THE 4 P’s OF EXPERTISE

P

P

P

P

THE FORMULA FOR BUSINESS EXCELLENCE (Talent + Culture + Extreme Customer Focus) X Disciplined Execution = Business Excellence

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Ignorance

Inflexibility

Indifference

Inconsistency

HOW TO AVOID THE 4 I’s 1 = awful 3 = poor 5 = average 7 = good 10 = world-class

1. Aggressive external market focus

2. Ridiculously high level of customer focus

3. Keep the "Main Things" the main things

4. Bullish on knowledge sharing and learning

5. Teamwork is mandatory – not optional

6. Passion and commitment at all levels

7. Foster a healthy paranoia

8. Drive change

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Achieving Business Excellence

ORGANIZATIONAL EFFECTIVENESS AUDIT

1 = strongly disagree 3 = disagree somewhat 5 = not sure 7 = agree somewhat 10 = strongly agree

1. We have a clear and detailed vision for the direction of our company that is very wellcommunicated throughout the entire organization:

2. Every employee has clear/quantifiable/observable performance objectives:

3. There is a high level of very open and honest communication throughout theorganization:

4. I have a high level of trust in the skills, abilities, and integrity of my co-workers:

5. There is a high sense of urgency within the organization to get things done:

6. We have only highly competent people in all areas of the organization:

7. We focus very intently on the needs of our customers: _____

8. There are no politics, rumor-mongering or finger-pointing within our organization:

9. Our key leaders operate as a highly-effective team:

10. There is a high level of both personal and mutual accountability within the organization:

11. People display a positive, enthusiastic attitude throughout the organization: _____

12. We are superb at collecting and using feedback from our customers: _____

13. Our organization displays great discipline in pursuing our focused business objectives:

14. I am very pleased with where our organization is in the marketplace today:

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Achieving Business Excellence

Adapted from: The Five Dysfunctions of a Team by Patrick Lencioni

The first dysfunction is a lack of trust, which leads to a lack of candor where people are unwilling to say what is really on their mind, meaning that they often commit to things in public which they privately do not think is a good idea, so they are not personally committed and because they are not genuinely committed, they do not want to be held accountable for results, so they don’t hold anybody else accountable, which means that the lack of trust inevitably leads to a lack of results.

THE FIVE KEY ELEMENTS OF TRUST

1. Connection2. Concern3. Competence4. Character5. Consistency

Connection: a genuine desire to truly understand and empathize with the other person. People don’t trust you until they understand that you understand them.

Concern: caring about the other person, understanding their needs and often putting their needs above your own. A good example would be the idea of servant leadership.

Competence: demonstrating deep expertise and continuous learning. In other words; be so good they can’t ignore you.

*A phrase that captures the essence of competence and concern is “I’m good at what I doand I do it because I care about you.”

Character: the number one factor in character is honesty, tell the truth all the time. Another word here would be integrity.

Consistency: people need to see where you stand and have the confidence that you will be even- keeled and consistent in your values, behaviors and actions.

**Special note: most people try to lead with number three, but if you don’t start with numbers one and two, people don’t really care about number three.

TRUST Candor Commitment Accountability Results

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Achieving Business Excellence

Google Spent 2 Years Studying 180 Teams. The Most Successful Ones Shared These 5 Traits

Over the years, Google has embarked on countless quests, collected endless amounts of data, and spent millions trying to better understand its people. One of the company's most interesting initiatives, Project Aristotle, gathered several of Google's best and brightest to help the organization codify the secrets to team effectiveness.

Project Aristotle has managed to study 180 Google teams, conduct 200-plus interviews, and analyze over 250 different team attributes. Unfortunately, though, there was still no clear pattern of characteristics that could be plugged into a dream-team generating algorithm. It wasn't until Google started considering some intangibles that things began to fall into place.

As they struggled to figure out what made a team successful, the group kept coming across research by psychologists and sociologists that focused on what are known as "group norms" - the traditions, behavioral standards, and unwritten rules that govern how teams function when they gather... Norms can be unspoken or openly acknowledged, but their influence is often profound.

With a new lens and some added direction from a research study on collective intelligence (abilities that emerge out of collaboration) by a group of psychologists from Carnegie Mellon, MIT, and Union College, Project Aristotle's researchers went back to the drawing board to comb their data for unspoken customs. Specifically, any team behaviors that magnified the collective intelligence of the group.

What they discovered were five key characteristics of enhanced teams.

1. DependabilityTeam members get things done on time and meet expectations.2. Structure and clarityHigh-performing teams have clear goals and have well-defined roles within the group.3. MeaningThe work has personal significance to each member.4. ImpactThe group believes their work is purposeful and positively impacts the greater good.5. Psychological SafetyWe've all been in meetings and due to the fear of seeming incompetent, have heldback questions or ideas. I get it. It's unnerving to feel like you're in an environmentwhere everything you do or say is under a microscope. But imagine a differentsetting. A situation in which everyone is safe to take risks, voice their opinions, andask judgment-free questions. A culture where managers provide air cover and createsafe zones so employees can let down their guard. That's psychological safety.

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Achieving Business Excellence

SIX KEY ELEMENTS OF HIGH-PERFORMANCE TEAMS

Direction: clear, vivid, compelling and shared

Measurements: specific, well understood, binary

Competence: best possible people

Communication: open, honest, robust and transparent

Mutual accountability: personal, mutual, reverse

Discipline: making sure that you build these into the culture of your team

10 KEY TEAM COMPETENCIES How well do your teams currently do these things? 1 = awful 3 = poor 5 = average 7 = good 10 = world-class

1. Setting specific and measurable goals

2. Making assignments extremely clear and ensuring required competence

3. Establishing 100% accountability for high performance across the entire team

4. Running effective team meetings

5. Building very strong levels of trust

6. Establishing open, honest, frank and safe communication

7. Managing conflict effectively

8. Creating mutual respect and collaboration

9. Encouraging prudent risk-taking, creativity and innovation

10. Engaging in ongoing team building activities

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Achieving Business Excellence

29% of employees are engaged 45% of workers are not engaged 26 % of workers are actively disengaged

The key drivers of employee disengagement are:

•Relationship with direct manager: 8 out of 10 employees dissatisfied with the directmanager were disengaged.•Belief in senior leadership: 7 out of 10 employees who were not confident in theabilities of senior leadership were not fully engaged.•Pride for working for the company: Roughly 5 out of 10 employees who take pridefor their organization’s contributions to society were engaged.

The Seven Defining Elements of a Winning Culture from Bain & Company/Harvard

1 = strongly disagree 3 = disagree somewhat 5 = not sure 7 = agree somewhat 10 = strongly agree

1. Honest. There is high integrity in all interactions, with employees, customers, suppliers,and other stakeholders _____

2. Performance-focused. Rewards, development, and other talent-management practicesare in sync with the underlying drivers of performance _____

3. Accountable and owner-like. Roles, responsibilities, and authority all reinforce ownershipover work and results _____

4. Collaborative. There’s a recognition that the best ideas come from the exchange andsharing of ideas between individuals and teams _____

5. Agile and adaptive. The organization is able to turn on a dime when necessary and adaptto changes in the external environment _____

6. Innovative. Employees push the envelope in terms of new ways of thinking _____

7. Oriented toward winning. There is strong ambition focused on objective measures ofsuccess, either versus the competition or against some absolute standard of excellence

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Achieving Business Excellence

ELEMENTS OF A WINNING CULTURE from John Spence

• People enjoy the work they do and the people they work with

• People take pride in the work they do and the company they work for

• There are high levels of engagement, connection, camaraderie

• There is a culture of fairness, respect, trust, inclusiveness and teamwork

• The leaders walk the talk, live the values and communicate a clear vision and strategy for growth______

• Lots of open, honest, robust and transparent communication across the entire organization _____

• The company invests back in employees; there is a commitment to learning and development______

• There is a bias for action, employees have an ownership mentality and strive to give their best _____

• There is high accountability and a strong focus on delivering the desired results _____

• There is ample recognition and rewards and mediocrity is not tolerated

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Web of value = Voice of the Customer (VOC) – Moments of Truth(MOT) – Word of Mouth

What are all the ways you currently listen to the VOC? Ways to listen to the voice of the customer include: customer surveys, new customer surveys, VIP customer surveys, surveys of customers that have left you, net promoter score, observation, mystery shoppers, point of sale, email and web forms, customer advisory panels, focus groups, social media, taking key customers to lunch or dinner.

Are there new ways you can add?

The Four Customer Questions

1. Why, specifically, do you do business with us? What are the top three or four reasonsyou chose our company?

2. What can we do to make it easier to do business with us?

3. What would it take to earn more, or all, of your business?

4. What would we do that would cause you to fire us right away?

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Achieving Business Excellence

Moments of Truth

What do you believe are the top three to five key moments of truth for your customers?

Do you have a robust system/process in place to ensure repeatable success in delivering these moments of truth flawlessly to every customer?

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Achieving Business Excellence

Word of Mouth The Five Keys to Referability

THE 4 + 2 FORMULA

THE FOUR PRIMARY MANAGEMENT PRACTICES

1. Strategy: Develop and maintain a sharply focused, wellcommunicated vision and strategy for growth

2. Execution: Develop and maintain flawless operational execution

3. Culture: Develop and maintain a performance-oriented culture

4. Structure: Build and maintain a fast, flexible, flat organization

THE FOUR SECONDARY MANAGEMENT PRACTICES

1. Talent: Hold on to talented employees and find more

2. Leadership: Key leaders are truly committed to the business

3. Innovation: Make innovations that are industry transforming

4. Mergers and Partnerships: Work with others to increase company growth

Based on: "What(Really) Works” by Joyce

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Achieving Business Excellence

Key Drivers of Business SuccessFrom: Practice What You Preach by Maister

CR=104.12

Quality P&S &

Customer Relationship

CR= .404

Employee Satisfaction

CR=.277

CR=.275 CR=.249

CR=.334

Empowerment CR=.280 Coaching High Standards

CR=.285 CR=.371 CR=.365 CR=.191 CR=.247

Long-term Orientation

Enthusiasm, Commitment,

Respect

Training & Development

Fair Compensation

Financial Performance

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Here is a checklist of actions that led these companies to bring in financial returns that were often as much as 20 times greater than their competitors...

1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure

7 = Agree Somewhat 10 = Strongly Agree

• We have an uncompromising determination to achieve excellence in everything we do:

• We have a real commitment to high-quality work and tolerate nothing less:

• We have a real commitment to high levels of customer service and tolerate nothing else:

• In this company we set and enforce very high standards for performance:

• Management gets the best work out of everybody in the company:

• The quality of the work performed by our employees is consistently high:

• We make our customers feel as though they are very important to us:

• Customer satisfaction is a top priority in our company:

• We listen very well to what the customer has to say:

• We are extremely good at building long-term customer relationships:

• The people in our company do "whatever it takes" to do a good job for the customer:

• We do a good job of resolving customer problems when they occur:

• The level of quality service delivered by our organization is consistently high:

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Achieving Business Excellence

Adapted from Scaling Up by Vern Harnish

• The executive team is high-functioning and aligned

• Everyone is aligned with the number one thing that needs to be accomplishedthis quarter to move the company forward

• Communication and information flows through the organization accurately and

quickly

• Every facet of the organization has a person assigned with accountability forensuring goals are met _____

• Ongoing employee input is collected to identify obstacles and opportunities _____

• Reporting and analysis of customer feedback data is as frequent and accurate asfinancial data _____

• Core values and purpose are “alive” in the organization ______

• Employees can accurately articulate the key components of the company strategy ____

• All employees can answer quantitatively whether they had a good day or week _____

• The company’s plans and performance are visible to everyone _____

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IDEAS INTO ACTION

Go back page-by-page and carefully look through the entire book. Compare and contrast your scores on the various audits and re-read any notes you wrote. What are the themes that emerge… the patterns? Look for any scores below a 7 as an area that needs improvement and anything in the 1-5 range as a serious problem that needs attention.

The goal here is to really dig into these topics so you can take an honest look at the actual current state of your organization. This is a rare opportunity to take a critical look at how well your organization is truly operating and specifically what must be done to improve it. Take this exercise very seriously and push yourself to really understand what these scores and everything you learned today about world-class organizations could mean to your business.

STRENGTHS What was the pattern of high scores? In what major areas did you seem to have as strengths where you scored an 8 or higher across all the workshops?

WEAKNESSES What was the pattern of low scores? In what major areas did you seem to have as weaknesses where you scored a 6 or lower across all the workshops?

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Achieving Business Excellence KEY STRATEGIES Based on everything you have learned here today and your own personal business experience, what do you believe are the top strategies your organization must focus on to build and sustain success? What are the three to five most important ideas that will drive your organization’s future?

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Achieving Business Excellence ORGANIZATIONAL ACTION STEPS Please list at least four specific, measurable, observable and BINARY action steps your organization can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can be done right away to take the lessons of this class and put them into positive action for your organization?

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Achieving Business Excellence PERSONAL ACTION STEPS Please list at least four specific, measurable, observable and BINARY action steps you can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can you do to make a more positive impact on your organization’s success?

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Achieving Business Excellence NOTES:

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Achieving Business Excellence

In your teams, share what you just wrote in the previous workshop. Make sure each person takes time to explain their findings and recommendations. Then combine all your answers in order to create a group answer to the following questions:

What does your team feel are the three major strengths of your organization now?

What does your team feel are the three major weaknesses of your organization now?

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Out of everything you have written, what are your teams top three recommended action steps that the organization should take immediately?

To expand on the ideas presented today and to access additional resources, visit the client portal created for you to use

and share Johnspence.com/OPIE

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NOTES:

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Achieving Business Excellence

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NOTES:

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NOTES:

Page 26: Achieving Business Excellence - OPIE Choice Network · Achieving Business Excellence Adapted from: The Five Dysfunctions of a Team by Patrick Lencioni The first dysfunction is a lack

How to Create a Culture of Disciplined Execution and

Accountability

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Execution and Accountability

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Roadblocks to a High Accountability Culture

• Past mistakes: the organization doesn’t learn from past mistakes and, even worse, leaders keeprepeating them. If there is any improvement, it’s typically incremental.

• Poor execution planning: most of the planning time is spent crafting a strategy and only a little onpreparing the execution.

• Strategies are overbroad and not prioritized.

• Strategy requires a long-term perspective, but the business is being managed for short-term results.

• Execution never goes according to plan. There are major changes in the organization or marketplace,yet leaders often fail to adjust the execution plan accordingly.

• Too much change: the plan never gets traction because the leaders keep changing the strategy.

• No follow-up occurs. Fantastic strategy retreat, nothing different six months later.

• Culture does not support the execution: there are no negative consequences for not delivering on theplan.

• Top-heavy strategy: the plan is created by the senior management team without input from otherlevels in the organization.

• Leaders underestimate the execution challenge: leaders are unprepared for the amount of resistanceand or apathy around execution of the plan.

• Not my job to execute: we build a plan – they make it happen.

• Too many objectives/goals: employees are overwhelmed by the number of goals and strategies andI’m sure how to prioritize their work.

• Communication poor and inadequate: leaders underestimate the challenge of communicating thevision, mission, strategy and goals. Every strategic plan also needs and execution plan and acommunication plan.

• No support given by bosses: here are all the new goals and priorities that I expect you to deliver, butI’m not taking anything else off your plate or giving you any more resources – good luck!

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All the audits in this workbook are scored on a 1 to 10 scale, with 10 being world-class and 1 being very poor.

1. Our organization sets clear goals for the near-term (one – five years) that are supported by ourstrategy and the way we measure performance_______

2. Management exhibits discipline and resolve in achieving goals _______

3. Our systems provide information on goals, including who is accountable for meeting them _______

4. Goals are created in a way that makes it clear whether they are reached or not _______

5. Measurements are created in a well-developed process that makes who, what, how, how much, andwhen easy to understand _______

6. We know how to measure the right things to predict success and avoid pitfalls; we understand thekey performance factors for the organization _______

7. Our strategy lays out a clear path for us to reach from where we are, to where we want to be _______

8. Management is clear on the strategy, and when strategy changes, we have a repeatable process formaking necessary adjustments to goals and metrics _______

9. We have the systems, data, and ability to design strategy based on solid information _______

10. Our company culture, as it is today, is well-suited to carry out our strategy and works well within ourstructure _______

11. Managers and leaders are active in shaping the culture of the organization in effective ways _______

12. Our culture is a competitive advantage for us because of the way it attracts and motivates peoplewith the skills we need _______

13. Our information systems breakdown organizational barriers by openly sharing information across thebusiness boundaries _______

14. The strategy of the organization is clear and well understood by peoplethroughout the organization _______

15. People in the organization have a clear sense of what they can do to support strategy _______

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In life and in business, you get what you tolerate. In this workshop, I want you to list everything that you currently tolerate in your business and the things you absolutely refuse to tolerate. Here are several examples of things that you should consider:

We do/do not tolerate

We currently tolerate…

• Coming in late• Leaving early• Taking overly long breaks• Turning work in late• Turning in mediocre work• Not collaborating with others• Rumormongering• Creating office politics• Emotional outbursts• Lack of respect• Missing deadlines• Lying• Violating the core values of the

organization

• Being rude to other team members• Being rude to customers• Being rude to vendors/suppliers• Complaining about customers• Complaining about other employees• Consistently negative attitude• Not being responsive to voicemails/texts• Too much time on social media• Blaming others• Not taking accountability• Not learning and constantly improving• Not following the basic rules of the

organization

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We refuse to tolerate…

What needs to change and how will you change it?

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The Five Levels of Commitment

1. Apathy: neither for or against the strategy. No interest. No energy. “Is it 5 o’clock yet?”

2. Noncompliance: does not see the benefits of the strategy and will not do what’s expected. “I won’t doit, you can’t make me.”

3. Grudging compliance: does not see the benefits of the strategy, but also doesn’t want to lose job.Does enough of what’s expected, but also lets it be known that he/she is not on board.

4. Formal Compliance: Sees the benefit of the strategy. Does what is expected and no more.

5. Commitment: owns it, will make it happen.

What is the compelling purpose of your business that would get your people to be fully committed to achieving their goals and being highly accountable?

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The Five Keys to Accountability

1. 100% clarity plus the appropriate authority and resourcesIt is critical that you have a very clear conversation about exactly what outcomes are expected. Theperson needs to know what KPIs (Key Performance Indicators = metrics/measurements) they will bemeasured by, what the due dates are, the budget, deliverables, resources available, decision rights…EVERYTHING you can possibly explain to help them understand fully and completely exactly whatthey are going to be held accountable for. It is also essential when creating the KPIs that they bebinary. There can be no ambiguity about whether someone achieved what they were supposed to ornot. In this way you can be rigorous about holding people accountable, without being ruthless. Clear,unambiguous KPIs remove opinion, personalities, politics and emotions from the accountabilityprocess. The person either achieved the KPI or they didn’t, no guessing.

2. 100% agreementNext, the person you are going to hold accountable must demonstrate clearly that they understandeverything you have just told them accept 100% accountability for delivering the required outcomes.The best way to do this is to create an “Accountability Agreement,” a document where you and theperson together, write out exactly what is expected, what the KPIs are, what resources they haveavailable, how much authority they have… EVERYTHING you have discussed about the project andthen both of you sign it. It clearly lays out what they are accountable for delivering and what you willdo to support them and help them achieve their goals. This document can be used as a coaching toolduring meetings to make sure that the person stays on track and is making progress to deliver therequired results.

3. Track and postOnce you have completed the Accountability Agreement, transfer the KPIs to some sort of trackingsystem (a computer dashboard, whiteboard, Excel spreadsheet). Two key ideas here are to make ithighly visible and extremely easy to understand. You want to post the major KPIs for every singleemployee in the company, where every single employee in the company can see them all, and use avery simple method to display how people are doing against their KPIs (most organizations use green,yellow, red).

4. Coach, mentor, train and supportMost people think that organizations use tracking for punishment, so the idea of posting all of theirKPIs so that everyone in the organization can see them can be quite intimidating. So to turn thinkingaround, when someone slips from green to yellow, instead of getting in trouble, you give them helpand support. When focus on the team see that they have slipped from green to yellow, they come inand ask what they can do to assist them. Do they need more resources, training, a mentor,equipment… and eventually they learn that tracking does not equal punishment – tracking equalshelp. Once they understand that, most people embrace the tracking and feel like it is a useful tool tohelp them achieve their goals.

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Characteristics of an Effective Coach

Positive • Your job is NOT to find fault, correct mistakes, assess blame and “put people in their place.”• Your function is to achieve productivity goals by COACHING your people to peak performance

through sharing best practices and developing value-added solutions.Supportive

• Your job as a coach is to get your people what they need to achieve their productivity goals,including resources, training, tools, time, answers to questions and the removal of anybarriers that stand in the way of them delivering on their goals.

• You are there to HELP and SERVE.Observant

• Being observant means more than just keeping your eyes and ears open.• You need to be aware of what isn’t being said… of body language and facial expressions… of

discomfort and unease.• If you are paying close attention and being highly observant you won’t have to wait for

someone to tell you about a problem.

5. Reward success/deal decisively with failureWhen someone consistently delivers on their KPIs it is very important that’s reward positive behaviorwith positive reinforcement. I’m not saying you must throw money at them, it could be a gift card,dinner out with their significant other, trophy, employee of the month, a handwritten note, anythingthat clearly links accountability to success in the organization. On the other hand, if someone isconsistently yellow-red, yellow-red, yellow-red and your coaching, mentoring, training and supportingthem, and they’re not getting any better – it will be easy decision to remove them from theorganization. Also, when you work with the person to try to get them back in the green, and make alot of effort to help them, and you have to fire them, it will be apparent to everyone that you wereextremely supportive and fair.

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A Key to Execution and Accountability: Meeting Cadence The major reason that organizations fail to execute their strategy is lack of focus on their strategic plan and rigorously holding people accountable for delivering on their KPIs. The best way to keep people focused is to keep the strategy and KPIs top of mind by talking about them often. To do this, the best companies in the world create a reliable rhythm of carefully structured meetings. According to several of the world’s leading experts on execution, here are the meetings your company should be having.

A Daily Huddle A 10 to 15-minute meeting, typically held at the start of the business day, to give very brief progress updates and discuss any critical issues. The goal of this meeting is to talk about the main things that need to get accomplished that day. Many companies run these as a standup meeting (and/or by conference call), and the more people you can get involved the better. It is very important to keep the meeting on track, moving quickly and only covering the most important things that need to be addressed that day to keep the organization running smoothly.

Weekly Meeting A 60 to 90-minute meeting for your team (management team, departmental team, cross functional team) to discuss any critical issues, measure current performance against the strategic plan and KPIs, and strategize about how to continuously improve your performance.

Monthly Management Meeting A half-day meeting where all key managers in the company focus on organizational performance as measured against the strategic plan and KPIs, discuss any major issues, talk about customer feedback and changes in the market, and make any key decisions about how to push the strategy forward for the next month.

Quarterly Management Meeting A half or full day meeting for all key managers to focus on organizational performance as measured against the strategic plan and KPIs, and discuss any major issues that must be addressed. This meeting is more strategic than the monthly meetings and focuses on major issues in the 1-3 year time horizon.

Annual Meeting This is an intensive two to three-day off-site meeting for the senior leadership team to review and reset the strategic plan.

Based on the work of Vern Harnish

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Leading Execution and Accountability

• A lot of people are depending on you, it is your job to create a strong competitive strategy for the

future of the business.

• If people don’t have a say in the outcome, they won’t have a stake in the outcome. Involve all levels of

the organization in assisting to create the strategy and strategic plan.

• It is critical that you spend as much time and effort on building the strategic execution plan as you do

on putting together the strategic plan.

• If the leaders are not focused on execution and accountability, no one else in the organization will be

either. All senior leaders must be a living example of what they want the rest of the organization to

behave like.

• When you feel like you have talked about the mission, vision, values, strategy and strategic plan to the

point where you are about to get sick to your stomach, only 10% of the organization has heard you. It

is literally impossible to over communicate on these topics.

• Higher, on-board, train, promote and terminate based on disciplined execution and accountability.

• Ambiguity breeds mediocrity. Create a clear and focused strategic plan with binary KPIs.

• Create a meeting cadence to keep strategy, the strategic plan, KPIs, disciplined execution and

accountability at the forefront of everyone’s mind. Build it into the DNA of the company.

• An important part of being a great strategic leader is figuring out what to say “no” to.

• The main thing is to keep the main thing the main thing. You cannot have 17 strategies and 200

priorities.

• The three watchwords of strategic success are: Focus + Discipline x Action. Focus relentlessly on the

strategy and strategic plan, create a culture of disciplined execution and accountability, apply massive

action to achieve your vision.

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This workbook was created based on more than 25 years of my personal business experience and a massive amount of research and study. Many of the core ideas in this workbook were taken directly from these superb books, which I highly recommend you read.

Accountability: Getting a Grip on Results – by Klatt, Murphy and Irvine Scaling Up – by Vern Harnish Creating the Accountable Organization – by Mark Samuel Execution – by Bossidy and Charan Strategy Execution Heroes – by Jeroen De Flander Ruthless Execution – by Amir Hartman Executing Your Strategy by Morgan, Levitt, Malek Successful Strategy Execution – by Michael Syrett Closing the Execution Gap by Richard Lepsinger Six Disciplines Execution Revolution – by Gary Harpst

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ADVANCED LEADERSHIP

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LEADING PEOPLE Rosen & Brown Penguin Books THE EIGHT PRINCIPLES OF LEADING PEOPLE VISION Leaders see the whole picture and articulate that broad perspective with others. By doing so, leaders create a common purpose that mobilizes people and coordinates their efforts into a single, coherent, agile enterprise. TRUST Without trust, vision becomes an empty slogan. Trust binds people together; creating a strong, resilient organization. To build trust, leaders are predictable and they share information and power. Their goal is a culture of candor. PARTICIPATION The energy of an organization is the participation and effort of its people. The leader’s challenge is to unleash and focus this energy, inspiring people at every level of the enterprise to pitch in with their minds and hearts. LEARNING Leaders need a deep understanding of themselves. They must know their strengths and shortcomings, which require a lifelong process of discovery and they must be able to adapt to new circumstances. They must promote constant innovation and leaders must encourage their people to refresh their skills and renew their spirits. DIVERSITY Successful leaders know the power of diversity and the poison of prejudice. They understand their own biases and they actively cultivate an appreciation of the positive aspects of people’s differences. In their organizations, they insist on a culture of mutual respect. CREATIVITY In a world where smart solutions outpace excessive work, creativity is crucial. Leaders pay close attention to people’s talents, leaning on their strengths and managing around their weaknesses. They encourage independent, challenging thinking and they invest in technologies that facilitate the efforts of their people. INTEGRITY A leader must stand for something. As a public citizen and a private person, he/she knows what is important in life and acts by deep-seated principles. Every wise leader has a moral compass, a sense of right and wrong. Good leaders understand that good ethics is good business. COMMUNITY Community is mutual commitment and it inspires the highest performance. It is human nature to go the extra mile for one’s neighbors and fellow citizens and a mature leader stresses the organization’s responsibility to the surrounding society. A leader also acts as a steward of the natural environment.

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THE LEADERSHIP CHALLENGE Kouzes & Posner Kouzes Jossey-Bass

THE FIVE FUNDAMENTAL PRACTICES OF EXEMPLARY LEADERSHIP

CHALLENGE THE PROCESS Those who lead others to greatness seek and accept challenge. They are pioneers – people willing to step out into the unknown. They are willing to take risks, to innovate and experiment in order to find new ways of doing things. But leaders need not always be the creators or originators of new products, services or processes. In fact, it’s just as likely that they’re not. Product and service innovations tend to come from customers, clients, vendors, people in the labs and people on the front lines, while process innovations tend to come from the people doing the work.

The leader’s primary contribution is in the recognition of good ideas, the support of those ideas and the willingness to challenge the system in order to get new products, processes, services and systems adopted.

INSPIRE A SHARED VISION Leaders have a desire to make something happen, to change the way things are, to create something that no one else has created before. In some ways, leaders live their lives backward. They see pictures in their mind’s eye of what the results will look like even before they have started the project. Their clear image of the future pulls them and their people, forward.

People must believe that leaders understand and have their best interests at heart. Only through intimate knowledge of their dreams, their hopes, their aspirations, their visions and their values is the leader able to enlist support. Leadership is a dialogue – not a monologue.

ENABLE OTHERS TO ACT Leadership is a team effort. After reviewing more than 2,500 “personal-best” cases, we developed a simple test to detect whether someone is on the road to becoming a leader. That test is the frequency of the use of the word – “We.”

Leaders enable others to act. They know that no one does his or her best when feeling weak, incompetent or alienated; they know that those who are expected to produce the results must feel a sense of ownership. Leaders involve, in some way, all those who must live with the results and they make it possible for others to do well.

Leadership is a relationship built on trust and confidence. Without trust and confidence, people don’t take risks. Without risks, there’s no change. Without change, organizations die.

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MODEL THE WAY Leaders go first. They set an example and build commitment through simple, daily acts that create progress and momentum. Leaders model the way through personal example and dedicated execution. Leaders need operational plans. They must steer projects along a predetermined course and take corrective action. Yet the personal-best cases we examined included very little about grand strategic plans and massive organizational changes; they sounded more like action-adventure stories. They were about the power of little things piled one on top of the other until they added up to something really big. Concentrating on small wins, leaders build confidence that even the biggest challenges can be successfully met. ENCOURAGE THE HEART The climb to the top is arduous and long. People become exhausted, frustrated and disenchanted. They are often tempted to give up. Leaders encourage the heart to carry on. It is part of the leader’s job to show people that they can win. Encouragement is curiously serious business. It’s how leaders visibly and behaviorally link rewards with performance. When striving to raise quality, recover from disaster, start up a new service, or make a dramatic change of any kind, leaders make sure people benefit when behavior is aligned with cherished values.

TEN COMMITMENTS OF LEADERSHIP 1. Search out challenging opportunities to change, grow, innovate and improve. 2. Experiment, take risks and learn from the accompanying mistakes. 3. Envision an uplifting and ennobling future. 4. Enlist others in a common vision by appealing to their values, interests, hopes and dreams. 5. Foster collaboration by promoting cooperative goals and building trust. 6. Strengthen people by giving power away, providing choice, developing competence, assigning critical tasks and offering visible support. 7. Set the example by behaving in ways that are consistent with shared values. 8. Achieve small wins that promote consistent progress and build commitment. 9. Recognize individual contributions to the success of every project. 10. Celebrate team accomplishments regularly.

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Google Employees Weighed in on What Makes a Highly Effective Manager.

Google is widely known as an advocate of data-based decision making. So, it came as no surprise when they looked to their statisticians to help them decode the secret formula to effective management.

After gathering and analyzing 10,000 manager observations, including performance reviews, surveys, and nominations for top-manager awards and recognition, Google stumbled upon a realization that surprised many--even their Ex Senior Vice President of People Operations, Laszlo Bock.

In a New York Times article that revealed the findings, Bock acknowledged that the company had historically hired managers or promoted people who exhibited a higher level of technical expertise than others. "It turns out that that's absolutely the least important thing," Bock says. "It's important but pales in comparison. Much more important is just making that connection and being accessible."

Bock's team didn't stop there. Upon further analysis of the findings, they narrowed in on the "Eight Habits of Highly Effective Google Managers." Although technical skills made the list, it came in dead last. Here is a complete list via Business Insider (listed in order of importance):

• Be a good coach

• Empower your team and don't micromanage

• Express interest in employee's success and well-being

• Be productive and results-oriented

• Be a good communicator and listen to your team

• Help your employees with career development

• Have a clear vision and strategy for the team

• Have key technical skills, so you can help advise the team

If those weren't shocking enough, upon further examination of the most important habits of effective managers, Bock's group came to the following conclusions.

1. What employees valued most were even-keeled bosses

We've all had bosses lose their cool. Although no one is impervious to the occasional stress overload, the truth is even a single occurrence can add layers of unnecessary anxiety to your employees' already overloaded mental bandwidth. With the amount of variability and craziness that already comes with work, employees appreciate managers who are patient, poised, and positive. In environments that already lend themselves to stress, bosses who are regularly intense, high-strung, and impatient intensify challenging professions.

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2. Managers who helped people puzzle through problems were more effective

The transition to leadership also requires a transformation of thought. Managers have to redirect their focus from the "work" to their people. Effective managers take care of their people, understanding that their people take care of the work. This is the key to scaling your technical-self as a manager.

Although he's not typically associated with management best practices, Benjamin Franklin showed mastery with this quote, "Tell me and I forget, teach me, and I may remember, involve me, and I learn."

Yes, I know it's time-consuming. I know you have a million other things on your plate. However, collaborating and supporting your employees in this way pays dividends with each "puzzle" you help them solve. Not only is the work done consistently with your expectations, but your employees observe skills and traits vital to their success. Think of each "puzzle" as an investment in your employee's future.

3. Top performing managers took an interest in employees' lives and careers

Great managers earn your respect, engagement, and outstanding effort. Great mentors and friends gain your trust, loyalty, and appreciation. Now imagine these roles fused together (Yep, Super Boss). Now, I'm not saying you have to be best buddies with your employees. However, managers who truly care about their employee's success and well-being take an interest in their lives.

Imagine how far someone would go for a "Super Boss."

Although promotions usually come as a result of technical mastery, to be effective in your new role as a manager, you'll have to wear a different hat. Shift your focus to your people, and I promise, you'll see a significant return.

A BRIEFING FOR LEADERS Dilenschneider Harper Business HOW A LEADER SETS DIRECTION

• Create a strong vision • Articulate a clear course • Bias the organization toward action • Lift up the organization • Practice excellent personal communications • Earn conviction • Sustain the vision • Create unity of purpose • Leverage the strength of the culture • Support positive rituals • Harmonize vision and culture • Train people to focus

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THE SEVEN LESSONS

LEADERS DON’T WAIT They are proactive – they want to produce victories. Waiting for permission to begin is not characteristic of leaders. A sense of urgency combined with disciplined execution is.

CHARACTER COUNTS We call it the first law of leadership: if you don’t believe the messenger – you will not believe the message! People expect leaders to stand for something and to have the courage of their convictions. Therefore, the first milestone on the journey to leadership is clarity of personal values.

LEADERS HAVE THEIR HEAD IN THE CLOUDS AND THEIR FEET ON THE GROUND Not only do we demand that leaders be credible; we also demand that they have a clear and compelling vision of the future.

SHARED VALUES MAKE A DIFFERENCE As important as it is for leaders to have a clear vision and values, what they say must be consistent with the aspirations of their followers. Followers have needs and interests, dreams and beliefs of their own. Leaders must be able to gain consensus on a common cause and a common set of principles. They must be able to build a community of shared values.

YOU CAN’T DO IT ALONE Leadership is not a solo act. Winning strategies are always based on a “we,” not an “I,” philosophy.

THE LEGACY YOU LEAVE IS THE LIFE YOU LEAD Followers are moved by deeds. They expect leaders to show up, to pay attention and to participate directly in the process of getting extraordinary things done. Leaders take every opportunity to show others by their own example that they are deeply committed to the aspirations that they espouse. Leading by example is how leaders make vision and values tangible. It is how they provide evidence that they are personally committed.

LEADERSHIP IS EVERYONE’S BUSINESS There is a myth that assumes that when you are on top you are automatically a leader – this simply is not true. Leadership is earned – not bestowed. It is not a title – it is a responsibility.

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Insights on Leadership – Spears - John Wiley & Sons From a global study of leading CEOs, these were identified as the key characteristics for organizational success:

• Service to the customer is the keystone of the company’s mission. • Core values shape the culture and provide liberating support to associates. • Value is placed on community service in the communities in which the corporation operates. • The enterprise is viewed as a learning organization. Everyone is challenged to stretch toward his

or her individual potential. • Value is placed on the initiatives of associates to continuously improve the system. • Emphasis is placed on teamwork and alignment. • From the CEO and throughout the organization, extreme importance is placed on walking the

talk.

The leadership growth model that emerged from this study includes the following stages: 1. First, the leader must achieve a high level of self-mastery. This stage also requires a self-assessment of one’s own personal system including the values that shape the individual’s unique approach to leadership. 2. The second stage includes attention to a deeper level of communications. This means a serious commitment to cooperation and behaviors congruent with core values. 3. At the next level, the leader must practice transformational leadership. This dimension of leadership includes attention to releasing human potential and high levels of interaction and alignment.

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THE UNDERSTANDING AND PRACTICE OF SERVANT LEADERSHIP Spears Servant Leadership Research Roundtable 1. LISTENING: Leaders have traditionally been valued for their communication and decision-making skills. While these are also important skills for the servant-leader, they need to be reinforced by a deep commitment to listening intently to others. The servant-leader seeks to identify the will of a group and helps clarify that will. He or she seeks to listen receptively to what is being said (and not said!). 2. EMPATHY: The servant-leader strives to understand and empathize with others. People need to be accepted and recognized for their special and unique gifts. One assumes the good intentions of co-workers and does not reject them as people, even while refusing to accept their behavior or performance. The most successful servant-leaders are those who have become skilled empathetic listeners. 3. HEALING: Learning to heal is a powerful force for transformation and integration. One of the great strengths of servant-leadership is the potential for healing one’s self and others. Many people have broken spirits and have suffered from a variety of emotional hurts. Although this is a part of being human, servant leaders recognize that they have an opportunity to “help make whole” those with whom they come in contact. 4. AWARENESS: General awareness, and especially self-awareness, strengthens the servant-leader. Making a commitment to foster awareness can be scary—you never know what you may discover. Awareness also aids one in understanding issues involving ethics and values. It lends itself to being able to view most situations from a more integrated, holistic position. 5. PERSUASION: Another characteristic of servant-leaders is a primary reliance on persuasion, rather than using one’s positional authority, in making decisions within an organization. The servant-leader seeks to convince others, rather than coerce compliance. This particular element offers one of the clearest distinctions between the traditional authoritarian model and that of servant-leadership. The servant-leader is effective at building consensus within groups. 6. CONCEPTUALIZATION: Servant-leaders seek to nurture their abilities to “dream great dreams.” The ability to look at a problem (or an organization) from a conceptualizing perspective means that one must think beyond day-to-day realities. For many managers, this is a characteristic that requires discipline and practice. The traditional manager is focused on the need to achieve short-term operational goals. The manager who wishes to also be a servant-leader must stretch his or her thinking to encompass broader based conceptual thinking. 7. FORESIGHT: Closely related to conceptualization, the ability to foresee the likely outcome of a situation is hard to define, but easy to identify. One knows it when one sees it. Foresight is a characteristic that enables the servant-leader to understand the lessons from the past, the realities of the present, and the likely consequence of a decision for the future.

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8. STEWARDSHIP: Peter Block (author of Stewardship and The Empowered Manager) has defined stewardship as “holding something in trust for another.” Robert Greenleaf’s view of all institutions was one in which CEOs, staffs, and trustees all played significant roles in holding their institutions in trust for the greater good of society. Servant-leadership, like stewardship, assumes first and foremost a commitment to serving the needs of others. It also emphasizes the use of openness and persuasion rather than control. 9. COMMITMENT TO THE GROWTH OF PEOPLE: Servant-leaders believe that people have an intrinsic value beyond their tangible contributions as workers. As such, the servant-leader is deeply committed to the growth of each and every individual within his or her institution. The servant-leader recognizes the tremendous responsibility to do everything within his or her power to nurture the personal and professional growth of employees. In practice, this can include (but is not limited to) concrete actions such as making available funds for personal and professional development, taking a personal interest in the ideas and suggestions from everyone, encouraging worker involvement in decision making, and actively assisting laid-off workers to find other employment. 10. BUILDING COMMUNITY: The servant-leader senses that much has been lost in recent human history as a result of the shift from local communities to large institutions as the primary shaper of human lives. This awareness causes the servant-leader to seek to identify some means for building community among those who work within a given institution. Servant-leadership suggests that true community can be created among those who work in businesses and other institutions.

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THE TRUTH ABOUT LEADERSHIP Kouzes, and Posner Jossey-Bass The first truth is that You Make a Difference. It is not a question of “Will I make a difference?” Rather, it’s “What difference will I make?” Whether you lead one person or hundred thousand your leadership, positive or negative, will make a difference in their lives.

The second truth is that Credibility Is the Foundation of Leadership. It turns out that the believability of the leader determines whether people will willingly give more of their time, talent, energy, experience, intelligence, creativity, and support. Only credible leaders can earn commitment, and only commitment builds and regenerates great organizations and communities.

The third truth is that Values Drive Commitment. People want to know what you stand for and believe in. Having clear personal values that are fully aligned with the organizational values and living them every day is essential to being a credible and trusted leader.

The fourth truth is that Focusing on the Future Sets Leaders Apart. The capacity to imagine and articulate exciting future possibilities is a defining competence of leaders. You must take the long-term perspective.

You Can’t Do It Alone is the fifth truth. Leadership is a team sport… What strengthens and sustains the relationship between leader and constituent is that leaders are obsessed with what is best for others, not what is best for themselves.

Trust Rules is the sixth truth. Trust is the social glue that holds individuals and groups together. And the level of trust others have in you will determine the amount of influence you have. You have to earn your constituents’ trust before they’ll be willing to trust you. That means you have to give trust before you can get trust.

The seventh truth is that Challenge Is the Crucible for Greatness. Great achievements don’t happen when you keep things the same. Change invariably involves challenge, and challenge tests you. Leaders don’t just embrace change, they drive change.

Truth number eight reminds you that You Either Lead by Example or You Don’t Lead at All. Leaders have to keep their promises and become role models for the values and actions they espouse.

Truth number nine is that The Best Leaders Are the Best Learners. Leaders are constant improvement fanatics, and learning is the master skill of leadership.

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The tenth truth is that Leadership Is an Affair of the Heart. It could also be the first truth. Leaders are in love with their constituents, their customers and clients, and the mission that they are serving. Leaders make others feel important and are gracious in showing their appreciation. Love is the motivation that energizes leaders to give so much for others. You just won’t work hard enough to become great if you aren’t doing what you love.

**** You have just read excerpts from some of my favorite leadership books. I recommend you go out and buy these books and read them. A quick overview, like the one I have provided, is great to get a very general idea of the major themes of these books, but these are extremely talented authors who have a wealth of knowledge and valuable information to share in these books.

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PERSONAL LEADERSHIP COMPETENCY MODEL Based on the presentation, all the materials you have read and your personal experience, please create a detailed outline of your own “Personal Leadership Competency Model.” What are the specific skills, abilities and attitudes you feel you must have to become the sort of leader you aspire to be? Please be as precise as possible, listing measurable and observable behaviors whenever possible. I am not looking for just a few bullet points here, I want you to give this some serious thought and describe in clear detail what your personal leadership philosophy is built upon. What are the most essential things you need to do every day to be a living example of an excellent leader? *After this page, there are two blank pages, so be thorough in listing and explaining your model*

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NOTES

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IDEAL LEADER COMPETENCY MODEL In your work groups, let everyone share the “Personal Leadership Competency Model” you each created. Ask them to explain why they have listed certain characteristics, challenge them and yourself to explore these ideas more deeply, do not rush. Then, as a group, create a list of what you believe are the FIVE most important characteristics of a highly effective leader. Push yourself hard to develop a list that all of you feel very confident about. Please have someone in your group serve as a scribe and make sure you also have someone who is willing to present your list. Each group will have approximately three five to present their findings.

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Personal Core Values What are your personal core values? What are the values that you believe form the foundation of your life? Write them down in priority order if possible and it is best to try and keep the list to seven or less.

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Personal Core Values – part two For each of your core values, write out a very strong and clear sentence about why this value is so important to you. Here are some examples of how you might write these sentences: I must live the value of _____ in my life because… The core value of _____ is essential to the life I want to live and the person I want to be because… I value____ in my life because… _____ is one of my core values because…

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NOTES

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Legacy Find a quiet place where you won’t be disturbed and set aside at least an hour to do this workshop. It is critical that you push yourself hard and be 100% honest with yourself. This can be a life-changing exercise if you approach it seriously and thoughtfully. Family Legacy Imagine attending your own funeral. Now that your life has passed, what would you hope your family would say about you at the funeral. What legacy do you want to leave for the people that you love most dearly? Community Legacy What would you hope that your friends and other people from across the community would say about you? Business Legacy What legacy do you want to leave in your organization? What would the people you work with say about you at your funeral? What sort of things would you have done to impact the organization long-term?

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Family Legacy

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Community Legacy

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Business Legacy

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Legacy on Purpose Now, go back and carefully look over what you have created and ask yourself this question: What do I have to start doing today to make sure that I create the legacy I want to for my family, in my community and for my business? Most people worry about what legacy they are going to leave when they get near the end of their life, but the truth is you can and should start building your legacy today. You can begin right now doing the things that are necessary to be a living example of your values, successfully lead your family, community and business, and leave your legacy on purpose.

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NOTES

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DYNAMIC FOLLOWERSHIP

I must follow the people. Am I not their leader? Benjamin Disraeli, 19th century British prime minister

You must learn to follow before you can learn to lead.

Leadership is often associated with persons in positions of authority, and followership with people in subordinate positions. This is not the correct view of the leader/follower relationship. There are no leaders who are not followers, nor followers to are not leaders; both need to learn what and how to follow – that is, to lead themselves and others.

THE IMPORTANCE OF TRUST IN THE LEADER FOLLOWER RELATIONSHIP

1. Character: honesty, integrity, clear core values

2. Connection: they understand that you understand them

3. Competence: you are good at what you do

4. Concern: you have their best interests at heart

5. Consistency: you have demonstrated the previous qualities over time

LEADERSHIP AND FOLLOWERSHIP CHARACTERISTICS ARE SIMILAR – BUT NOT THE SAME

This is a list of some of the attributes I have heard from other groups

• Want to be there – be engaged

• Be highly capable and competent

• Support the vision

• Know the vision, mission and goals of the company

• Hold yourself highly accountable

• Ask for help when needed

• Work to support the leader and the team

• Give loyalty – but not blind loyalty

• Challenge the leader’s ideas when appropriate, but with respect

• Be proactive, don’t wait to be told what to do

• Have an ownership mentality

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HERE ARE SOME OTHER ATTRIBUTES TO CONSIDER INDIVIDUAL WORKSHOP Based on the presentation, what is listed above, and your personal experience, what do you believe are the most important attributes, characteristics, behaviors of a highly effective follower? Please take your time and be very thoughtful in your answer. Think about other people you have worked with that are great followers, or others who created problems because they could not follow effectively. As a leader, what would you look for in your ideal follower?

Dependable Purpose driven Supportive Communicative Helpful Cheerful Loyal Supportive Vision / mission oriented Considerate Defender Accountable Team oriented Respectful Handles conflict well Self-assured Critical thinker Competent Reinforces leader’s perspectives Compliments leader’s weaknesses Excellent Communicator

Thoughtful Passionate Fun to work with Reliable Dedicated Committed Open to feedback Lifelong learner Disciplined Organized Attention to detail Strategic thinker Proactive Driven Ambitious Compassionate Eager to serve The courage to challenge Persistent Diligent Curious

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DYNAMIC FOLLOWER COMPETENCY MODEL In your work groups, let everyone share the dynamic follower list that you each just created. Ask them to explain why they have listed certain characteristics, challenge them and yourself to explore these ideas more deeply. Then, as a group, create a list of what you believe are the FIVE most important characteristics of a highly effective follower. Push yourself hard to develop a list that all of you feel very confident about. Please have someone in your group serve as a scribe and make sure that you also have someone who is willing to present your list. Each group will have approximately three minutes to present their findings.

To expand on the ideas presented today and to access additional resources,

visit the client portal created for you to use and share Johnspence.com/

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NOTES