CHAPTER ONE
Developing a Leadership Vision
(It’s not What You Think!)
 
 
 
Look at any list of great leaders of the twentieth century, and you will find these five people at the top:
• Mohandas Gandhi
• Nelson Mandela
• Mother Teresa
• Martin Luther King, Jr.
• Franklin Roosevelt
At first blush, these people had more things not in common with one another than they had in common. They came from vastly different parts of the world: India, Africa, Germany, and the United States. They had different religious viewpoints: two were Protestants, one a Hindu, and one a Catholic. And they had vastly different economic and educational backgrounds.
Yet each one of these leaders started movements that still exist today and delivered sustainable results that any executive would envy. How? By the one thing they did have in common with one another: commitment to a cause. Deep in their soul was a vision for what they believed in and a dedication to see that vision lived in real, tangible ways. Although Martin Luther King, Jr. was the only orator of the group, “I have a dream . . .” could be words that introduce each of these five’s life’s work.
We tend to think of vision differently in business, and that is not a good thing. Too often we define a “good leader” simply as someone who sets a big, measurable goal for a company. The problem is an organization may meet the goal but not grow in its character, undermining the ability for continued goal achievement. In others words, goals, as important as they are, must have a deeper why or they are not sustainable. There must be an engine that drives them, commitment to a cause that is bigger than just raw market share.
In coaching executives on the issue of tying vision and values together, you may experience significant push-back. Talking about values in today’s postmodern work environment is often seen by hard-charging personalities as soft and unrelated to the bottom line. Nothing could be further from the truth. Values-based vision is the essential foundation for enduring success, not just a good quarter or two, as evidenced by the research that follows.

A BUSINESS CASE FOR VALUES-BASED VISION

In 1982, Thomas Peters and Robert Waterman wrote a groundbreaking business book titled, In Search of Excellence. It quickly became one of the best-selling business books of all time, making phrases like “management by wandering around” and “stick to your knitting” a permanent part of our corporate lexicon. Peters and Waterman examine in this book the practices of America’s best-run companies and reach this final conclusion:
Let us suppose that we were asked for one all-purpose bit of advice for management, one truth that we were able to distill from the excellent companies’ research. We might be tempted to reply, “Figure out your value system. Decide what your company stands for. . . .”
Every excellent company we studied is clear on what it stands for, and takes the process of value shaping seriously. In fact, we wonder whether it is possible to be an excellent company without clarity on values. (Peters and Waterman, 1982, pages 279, 280)
Twelve years later, in 1994, Jim Collins and Jerry Porris conducted a similar six-year research project of companies that had achieved long-term corporate success, and another business classic was born: Built to Last: Successful Habits of Visionary Companies. What Peters and Waterman called being “value-driven,” Collins and Porris refer to as having a “core ideology.” Either way, Built to Last concludes as well that this is key to a company’s success:
Contrary to business school doctrine, we did not find “maximizing share-holder wealth” or “profit maximization” as the dominant driving force or primary objective through the history of most of the visionary companies. . . . Through the history of most of the visionary companies we saw a core ideology that transcended purely economic considerations. And—this is the key point—they have had core ideology to a greater degree than the comparison companies in our study. (Collins and Porris, 1994, page 55)
Fast-forward another decade to yet another business best seller, The Leadership Challenge, by Jim Kouzes and Barry Posner. More research on this subject yielded the following real-world results:
Shared values make an enormous difference to organizational and personal vitality. Research confirms that firms with strong corporate culture based on a foundation of shared values outperform other firms by a huge margin. Their revenue grew four times faster, their rate of job creation was seven times higher, their stock price grew twelve times faster, and their profit performance was 750 percent higher. (Kouzes and Posner, 2002, pages 80, 81)
What would these numbers do for the companies you serve? Clearly this issue has application beyond that of religious organizations and social movements. Here’s why.

THREE REASONS VALUES-BASED VISION IS CRITICAL TO ORGANIZATIONAL SUCCESS

REASON ONE: Values Give Your People a Cause to Live for Instead of Just a Job to Do

The human spirit yearns to contribute to something that is bigger than itself. Human beings have an amazing ability to sacrifice almost anything for something they believe in. Individuals and organizations that think more deeply about their work, and the greater good it serves, tap this power of the human spirit and unleash its potential to deliver extraordinary results.
Consider the difference between these two statements, a first and second draft of a real mission statement for a local organization:
Statement One: To provide affordable housing for the citizens of Wayne County.
Statement Two: To raise the dignity of the families and children of Wayne County by providing affordable housing.
Which one moves you? Why? The first statement gives you a job, providing affordable housing, but the second statement gives you a cause, raising the dignity of families and children. Yes, you need a job to fulfill a cause, but it is a cause that will drive you to do the job to the best of your ability and overcome all its obstacles along the way. Effective organizations and effective leaders help their people understand that they are not just laying bricks, as the well-worn story goes, they are building a great cathedral. And that makes all the difference in the world.
Walk into any Starbucks and you will find the lush aroma of fresh ground coffee, a friendly greeting—by name if you’re a regular—and a values statement. Prominently placed in every Starbucks is a 12-panel color brochure titled, “Social Responsibility.” On that brochure is a list of Starbucks’s core values, things like fair trade, the environment, social responsibility, and employee health insurance. But the brochure’s title is “Social Responsibility,” so in addition to these topics, specific, measurable steps of action for each value are enumerated for all to see. One of the reasons for Starbucks’s meteoric rise in the industry is that working there is not just a job, it’s a cause, a cause their employees fervently believe in and give their best effort to support.
In the war for top talent that hiring has become today, values-based vision also sets you apart. The best and brightest want to work for a company that is a making a difference in the world, not just making money. Your values, your core ideology, your commitment to a cause will make your organization an employer of choice and attract the very best candidates to the hiring table.

REASON TWO: Values Give Your Associates Principles to Apply Instead of Just Policies to Enforce

One of the most infuriating customer service experiences is to be told by someone that your reasonable request cannot be met because “it’s not our policy.” Many companies develop policy manuals as a rule book to keep people in line and keep customers from stepping out of line. Leading companies, however, do not throw rules in your face, but teach their people values that can be applied in any situation to serve the customer.
Visit any Marriott hotel and you will experience this phenomenon. “Do whatever it takes to take care of the customer” is their mantra and they live it every day. The heroes at Marriott are frontline employees who give money out of their own pocket to help with a guest’s cab fare or take special care of a package so that a traveler’s child receives it on her birthday. “Do whatever it takes to take care of the customer” drives fanatical care for their properties with extraordinary attention to detail and personal pride in their appearance. Not surprisingly, this also affects the bottom line. Marriott consistently stands as one of the most profitable businesses in the hospitality industry and in 2005 won an award for best customer service for any hotel chain in the United States.
Rules take you only so far with people. Principles like service and social responsibility learned and lived by everyone in your organization deliver an unparalleled customer experience that keep people coming back again and again and again. And the really good news is that this loyalty, once gained, makes price irrelevant. Clearly, Starbucks doesn’t sell the cheapest cup of coffee you can buy, nor does Marriott have the cheapest room in town. “Why would I go somewhere else just to save a few dollars,” your customers will say to themselves (and others), “when they treat me so well?”

REASON THREE: Values Produce Leaders with Relational Authority and Not Just Positional Authority

There are two kinds of authority that leaders can possess: positional authority and relational authority. Positional authority is the authority of title, rank, or status within an organization. It is the authority that is conferred on us by virtue of moving up the organizational ladder. A second kind of authority is relational authority. This is authority that is given to us, not by words on a business card or a sign on the door, but by the relationship we have with real people. It is the authority we earn from others over time and is measured by the trust and respect they have for us. These two kinds of authority put together determine our effectiveness as leaders.
We have all worked for bosses who had positional authority without relational authority and remember how painful the experience was. They could tell us what to do, and did so repeatedly at various volume levels, but never won our respect, because on a personal basis, they were so offensive. We couldn’t wait for them to move on, very often further up the organizational ladder. This kind of leadership ultimately derails as everyone tires of its tone.
Those of us who have sold for a living know well the person who has relational authority without positional authority within an organization. She is the executive assistant who does not appear on any flowchart but knows everyone in the company and is trusted explicitly by all. These unofficial leaders have great power, and you cross them at your peril, for they can kill any sale at its inception. Yet, as many a sales professional has found out, this person often has no vote on a final decision because she is not in the room when it is made. Their leadership influence, while real, is limited by their lack of positional authority within the company.
The most effective leaders have both positional authority and relational authority. They have the character that complements their rank and status. People follow them—and give them their very best effort—not because they are ordered to but because they want to. What they say they believe and how they actually live are in congruence, and that congruence earns our trust and respect. Emotional intelligence gurus Richard Boyatzis and Annie McKee call this dynamic “resonant leadership” and state in their book by the same name, “We trust—and follow— people who are real, who are consistent, whose behavior, values, and beliefs are aligned. We trust people whom we do not constantly have to second-guess.” (Boyatzis and McKee, 2005, page 120)
A young Abraham Lincoln first ran for elected office at the age of 23. He did so with this pledge, “I have no other ambition so great as that of being truly esteemed of my fellow men by rendering myself worthy of their esteem.” (Oates, 1994, page 22) Over 30 years later he remained true to this pledge and died in large part because of it. The shadow of his leadership looms large across the pages of history as the greatest example of positional authority and relational authority working in concert.
Two Kinds of Authority
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Leaders who effectively lead others have a clear understanding of the way in which they will lead, the values that are at the core of their being. This is their vision, the cause to which they are committed. Goals come and go, as do sales contests and marketing strategies. Leaders who build enduring organizational capacity base their leadership on a clear set of values that drive them in everything they do.

BUSINESS COACHING EXERCISE: VALUES AND VISION

How do we develop these kinds of leaders and create these kinds of organizations? We do it by starting with a leader’s vision: identifying core values, defining them, and doing what it takes to live in line with them, both now and in the future. Here are four steps for doing just that:

Identify Your Core Values

On the following page is a list of 60 values. Read through the words or phrases and pause to reflect on each. Circle 10 that you would say are your top values. This may take a few minutes, so don’t rush it.
Core Values Master List
© 2007 Leadership Link, Inc. Used by permission.
AbundanceAuthenticityHarmony
AchievementBalanceWell-Being
AcceptanceCommitmentHonesty
ContentmentCare for othersHumor
CompetenceOrderDependability
QualityCourageKindness
EffectivenessCreativityKnowledge
DiversityEmpathyLoyalty
FunExcellenceOpenness
InnovationFairnessPassion
FitnessFaithPerseverance
GratitudeFamilyRespect for others
SimplicityFreedomResponsibility
PeaceFriendshipSecurity
Self-RespectGenerositySerenity
SuccessPeaceService to others
WisdomIndependenceSpirituality
DisciplineCooperationLove
EqualityStabilityWinning
TeamworkSelf-ControlJoy
Look at the list and the top 10 values that you have circled. Here comes the hard part. Cross out six of the top 10 that you have circled, leaving four values that you would say are at your very core. Crossing out a value doesn’t mean you don’t believe it; you are just saying that another word or phrase more accurately describes what you truly believe and makes it to your final four.
Look at this list in another way. Pretend your retirement dinner is next week and you will be presented with a very, very expensive gold watch for your years of faithful service. On the back of the watch is enough room for only four words. What four words would you want etched there as the legacy you leave for your life and leadership?

Personally Define Each of Your Core Values

Now ask yourself the question, what do these four values mean to me? Write an action-oriented definition, not from the dictionary, but from your heart. Focus on the positive things you will do to apply your values. In 25 to 30 words, define each of your top four values.
 
 
 
VALUES EXERCISE
Value: Success
I am passionate about getting things done. Big things, important things. I will set challenging goals and see them through to completion; earning, investing, and spending wisely so my family is financially independent.
VALUE: Well-Being
I will be a whole person, healthy in body and soul, staying fit physically and staying refreshed mentally and emotionally. I will always take the time to do the things I love.
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Envision What It Means to Live Your Values

Up to this point, this exercise has been fairly theoretical. But values are useless unless they are lived. This next step requires self-reflection and honesty. How do your actions line up with what matters most to you? Here is a series of questions to help you create a practical vision for the application of your values:
• What would your organization or department look like if you consistently led people based on the four values you have chosen? How do you see people working together, treating one another, serving the customer, and communicating differently because of them?
• Write this vision for your organization down on a sheet of paper. Be very, very concrete and specific.
• How does your current leadership style and behavior support the values and vision you have for the future of the organization?
• How does your current leadership style and behavior detract from the values and vision you have for the future of the organization?
• What are three specific steps of action you can take in the next 30 days to more fully implement your values and vision? How will you know if these steps are working? Who will hold you accountable for taking them?

Check Your Vision with Current Reality

It is critical that we see ourselves as others see us or we will live in the world out of touch with reality. As uncomfortable as the feedback process may be, it makes us a better person. “As iron sharpens iron,” the proverb goes, “so one man sharpens another.”
Choose three people you trust to tell you the truth. Share with them your final four values and the personalized definitions you have written. Also share your vision for how you intend to live out your values within the organization. Then ask for feedback. How are you currently doing this? How are you not doing this? Where do you need to grow to ensure that you are true to what matters most to you? This is a powerful exercise that people take very seriously and will give you great positive affirmation and caring, constructive input for your life and leadership.
BUSINESS IMPACT STORY: HOW A CLEAR SENSE OF ONE’S VALUES CREATES LOYALTY FROM THOSE WHO WORK FOR YOU
The presidency of Harry Truman was perhaps the most tumultuous in modern history. After serving only 82 days as vice president, Truman came to the White House as Franklin Roosevelt’s fourth term of office ended with a cerebral hemorrhage. America was waging war on two fronts and the atom bomb, a weapon Truman had no knowledge of, was nearing completion. In a matter of weeks, Truman, a farmer from Missouri without a college education, was negotiating the terms of postwar Europe with Churchill and Stalin.
What followed these talks was the unconditional Nazi surrender, the dropping of the atom bomb, the Berlin airlift that saved Germany, and the start of both the Cold War and the Korean war. Along the way Truman was reelected against overwhelming odds—remember the headline “Dewey Defeats Truman”—and endured the slurs of McCarthyism. There were scandals as well that seem to afflict every president. None that Truman was personally connected with, but many that brought down close cabinet members and personal aides. Truman added to the tension by occasionally putting his foot in his mouth in very public ways.
What is remembered about Truman in the midst of this drama is that he was an authentic human being. He was plainspoken, honest, and real, unaffected by power or popularity, faithful to his home and family. Hardworking, he stayed true to his farming roots, rising early for morning walks and taking on tough tasks because they were jobs that had to be done. “The buck stops here” was coined by Truman as well as the Truman Doctrine and the Marshall Plan that decades later resulted in the fall of the Iron Curtain.
Here is the point of all this history. The people who worked for Truman were fiercely loyal to him because of the kind of man he was. His character produced a trust and respect that was unparalleled inside or outside of government. Even when he made mistakes, his staff stood by him and defended him vigorously. When Truman decided not to run for a third presidential term and to return to private life, he told his staff four months before his public announcement so they could find other work. He only asked that they not tell anyone else. For four solid months, not one person breathed a word of the news. Loyalty of this kind is unheard of in politics, both past and present, earned by a leader who first and foremost led with his life.

TOP 10 WAYS TO USE THIS TOOL

1. For the first 30 days after doing this exercise, read through your values every day until you have them committed to memory. Then read them once a week. Do not put these nice words and phrases away in a file drawer and never think about them again! Constantly ask yourself, “How can I live these values?”
2. Many times, organizations are willing to invest in coaching or training for new managers to avoid costly mistakes at the start of their tenure. Make the Values Exercise tool a key piece in working with new managers and have them share these values with their new team. It will put them on a solid footing with those they are beginning to lead.
3. Established managers often have eroded followership. The honeymoon is over with their people and reality has set in. This Values Exercise is a great way for managers to reconnect with their team. Have them openly share what their top four values are, what they mean personally, and how they intend to live them. This act of vulnerability is incredibly powerful and builds deep loyalty. For established managers, the way up is down.
4. The Values Exercise can also be helpful in hiring. Identify the core values of your organization or group and summarize them in a paragraph or two. Ask open-ended questions about these values during candidate interviews and mentally check off whether this person is a good fit for the culture of your company.
5. Revisit your company’s mission statement. Is it just a functional definition of what you do or a rallying cry to support an important cause? What would it take to add a core value or two, a deeper why, to the stated purpose of your organization?
6. Use the Values Exercise as your initial free coaching consultation. Have prospective clients pick their top 10 values before your free consultation and have them choose the final four in your appointment with them. Then begin to form actionable, personalized definitions. This demonstrates the quality of coaching content you will bring to the table and the impact it can make. Ask, “What would it be worth to you to have someone help you apply these values in your life and leadership?” Professional coaches report having a higher prospect-to-client-close ratio when using a method like this.
7. The Values Exercise is a great team-building activity. Have each member of a team identify his or her top four values and share what they mean with the group. Relationships are strengthened, and by extension, performance increased, as this team gets to know one another better and trust one another more. By flip-charting each team member’s values and identifying the top one or two team values, the team can define what it is committed to as a group. Individual values become a starting point for group values that will drive the entire team, giving the group a bigger why to pursue than just the what of their work.
8. “How do you make decisions around here?” is one of the most powerful coaching questions you can ask and will yield clear insight into the inner workings of an organization. You can use the Values Exercise in seeking to help a department or leadership team answer that question better. By identifying their core values, you can help them make better decisions that are in line with their center instead of just throwing a dart at the wall.
9. Stress and burnout often come from living out of alignment with our values. Like uneven wear on a tire or static on the radio, when we are not in tune with our inner core, we experience distress. One’s work and life balance is an important topic in corporate life today and one that many are willing to address. The Values Exercise, with important steps of action that you keep your client accountable for taking, is a powerful way to approach this topic.
10. Use storytelling to reinforce a company’s core values. When you see an associate living a core value, talk about it publicly, send out an e-mail, print it in your newsletter. Make the ones who live out their values heroes of the organization. Make customers and business partners heroes too. When you see them living a value, tell their story as well. Use social events, year-end banquets, and award ceremonies to tell these stories.
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