Lumber Business Builds Beyond Tradition - Assessments

The
LEADERSHIP
MANAGEMENT®,
INC.
eadership
ournal
"A Progressive Journal
for Effective Leaders”
CLIENT SHOWCASE:
IN THIS ISSUE:
• The Top 10 Leadership
Books of the 1990s
• Innovative Leadership:
A Portrait of Edwin H. Land
• Making Decisions: Intuition
and the Search for Full
Potential
• New Millennium, New Challenges: A Leadership Creed
for the 21st Century
• Success Through People:
An Organizational Model
Premier Issue
Lumber Business Builds
Beyond Tradition
hen Schutte Lumber Company citing. It changes every single day,” says
first opened in 1880, the lumber Schutte president Bill Egner. “Our job is to
business was pretty cut-and-dried. keep up with change.”
The lumber business didn’t change a
And the Kansas City-based specialty lumgreat deal during founder Victor Schutte’s ber company does a good job of keeping up.
tenure as owner and president. Through Already, their products can be found in such
the Depression and
exotic emporiums
two World Wars,
as Home Depot
Schutte Lumber aland Lowe’s, and
ternately struggled
Internet shoppers
and prospered in
can browse offersync with the rest
ings on the Schutte
of the country. The
website.
company carved
Bill Egner’s faa unique niche
ther had been viceby providing spepresident of the
cialty lumber –
company from
large timbers and
1977 to 1981. Afexotic hardwoods – Schutte Lumber owner Dan Fuhrman (left) and president ter the death of
to builders and Bill Egner stand in front of their Kansas City facility.
family
owner
homeowners in
Carolyn Schutte
Kansas, Missouri, and three surrounding in 1993, the senior Egner actually ran the
states. In those years, most of the business business until 1997. The senior Egner had a
was wholesale, and end suppliers were typi- somewhat autocratic management style –
cally lumberyards or contractors within a and with good reason. He had inherited an
250-mile radius.
underperforming company in decline, bur“Now, the lumber business is really ex– continued on page 4 –
W
™
2
The Real Meaning of Success
sk five people to define success, focused on their most important activities
and you’ll likely get five differ- – tasks Meyer calls “high payoff activient answers. Strange, isn’t it? ties.” “Goals serve as a filter to eliminate
The one thing most of us seek cannot be extraneous demands,” Meyer says, adding,
defined by a clear, generally-accepted “Goals bring order to life, and meaning
standard...until now.
and purpose which sustain motivation over
Paul J. Meyer is the man who took a long period of time.”
the confusion out of success and develIf success can be defined by goals, and goals
oped the first systematic approach to achieved through a process of personal managepersonal and organiment and goal setting,
zational achievewhy are not more people
ment. Meyer, who “Success is the progressive re- uniformly successful?
founded Leadership alization of worthwhile, prePaulMeyersaysmany
Management,® Inc.
avoid the goal
determined personal goals.” individuals
in 1966, defines sucsetting process because
– Paul J. Meyer they don’t understand it.
cess as the “progressive realization of
“The steps in the process
worthwhile, predeare simple but not simtermined personal goals.”
plistic,” he maintains, “and the process is compreSuccess at any level doesn’t come by hensive but not complex. Many people lack the
accident. You cannot buy success, marry patience and open-mindedness required to watch
into it, inherit it, or stumble upon it. an overall activity pattern unfold.”
Success, according to Meyer, depends
Although many worthwhile achievements come
on the process of progressive realiza- about as side effects of some other activity or
tion. Goal setting is the most powerful purpose, they are, nevertheless, a direct conseforce available to improve personal pro- quence of the pursuit of predetermined goals. The
ductivity. And personal productivity, full, ultimate effect of goal achievement is not
in turn, actually triggers success.
always clearly visible when the achievement plan is
Meyer believes that productivity and set in motion, but achievement and increased persuccess are a direct result of a conscious sonal productivity invariably rise as a direct conseand deliberate goal setting practice, quence of striving toward predetermined goals.
coupled with appropriate planning and
“Individual pace can vary,” Meyer believes, “but
action. “Without planning and goal set- the sequential process of goal setting and personal
ting,” Meyer points out, “all the desire achievement does not. When you internalize the
that can be aroused in the limitless goal
setting
potential of the human spirit is wasted process, your goals create a magnetic atlike the random lightning of a summer traction that draws you toward their
storm.”
achievement.”
The message is simple enough: Human desire and individual potential go
Meyer’s goal setting process is the foundation of best-selling
unharnessed and unused; their poten- LMI programs like Effective Personal Productivity. For more
tial power is wasted without the direc- information on this and other LMI programs, call 1-800tion provided by goal setting and care- 568-1241.
ful planning.
Meyer believes goal setting – supported by careful planning – provides a
sense of direction to keep individuals
A
Why
Written Goals?
Almost every success and leadership authority talks about the power
of written business and personal goals.
But why? Aside from the fact that
written goals help identify potentially
meaningful achievements, why are
written goals so helpful?
Part of the answer lies in the physical act of writing. Writing crystallizes
thought, which motivates action. And,
a written goals program is also a basis
for measuring progress. Definite plans,
after all, produce definite results. Indefinite plans, in contrast, typically
produce little or no results!
Other benefits from written goals
include:
Time savings. Written goals save time
because you always know what to do next.
Motivation. Each time you review a written goal, you become more excited about
working toward the objective.
Conflict reduction. Written plans and goals
help identify conflicts between various
priorities, heading off energy-draining confrontations and crisis. Conflict and frustration are eliminated through the creation
of a written plan for achievement.
Sequential action steps. Written goals form
a basis for action through the inclusion of
a sequential plan of action – a step-by-step
approach to the achievement of the objective. These action steps move you from
daydream to the reality of solid accomplishments. Without written plans, there
is no springboard to action, and thus, little
in the way of success or increased productivity.
Visualization. Written goals stimulate visualization. Definite plans help your mind’s
eye visualize future results clearly and easily.
3
From the President
elcome to the premier issue of The Leadership
Journal, a bi-monthly publication from Leadership
Management®, Inc. For more than 30 years, LMI
has produced cutting-edge, results-based materials, assessment
tools, and processes to help individuals and organizations
develop and use more of their potential. Our track record of
proven leadership development can provide you with a wealth
of information. The Leadership Journal is a conduit to help us
enrich your leadership experience.
Around the world, LMI supports highly trained franchise
and affiliate partners who specialize in all areas of individual
and organizational leadership development. The Leadership
Journal is designed as a resource for both new and existing
LMI clients. Its purpose is to inspire, encourage, and enhance
the LMI process. Clients may use The Leadership Journal to
learn more about the significance of leadership development
and its application in their field of work, and any reader with
an interest in self- or organizational improvement will find
valuable resources in The Leadership Journal.
Success is a measurable progression defined by a criteria of
specific, pre-determined goals. Successful leaders master the
process of setting, tracking, and achieving goals. True leadership, whether indi“For more than 30 years, LMI
vidual or within an organization, is emhas produced cutting-edge, rebodied in the daily pursuit of pre-detersults-based materials, assessmined, worthwhile goals. In essence, leadment tools, and processes to help
ership is a measurable skill and can be
individuals and organizations
developed given the appropriate process.
Beginning with an outstanding client
develop and use more of their
showcase
article and ending with a terpotential. ”
rific article by guest author Patrick Below, this issue of The Leadership Journal
covers many facets of effective leadership. The centerpiece of
The Leadership Journal is the “LMI Top 10.” This month, the
“LMI Top 10” provides a valuable summary of the best leadership and management books of the past decade. In this premier
issue, you’ll find many other articles to file away for future
reference and inspiration.
Please share your feedback with us. Like you, we are
committed to a process of continuous improvement. We
welcome the opportunity to partner with you in an exploration of your leadership potential.
W
Successfully,
David Byrd
President, Leadership Management®, Inc.
TABLE OF CONTENTS
2
The Real Meaning of
Success
2
Why Written Goals?
3
From the President
6
Innovative Leadership:
A Portrait of
Edwin H. Land
7-8
The Top 10 Leadership
Books of the 1990s
9
Making Decisions: Intuition
and the Search for Full
Potential
10
Good Leaders Plan for the
Unexpected
11
The Need for Feedback
12
Charisma is Overrated
13
New Millennium, New
Challenges: A Leadership
Creed for the 21st Century
15
Success Through People:
An Organizational Model
This newsletter is published for Leadership
Management®, Inc., P.O. Box 2503, Waco,
Texas 76702-2503, 1-800-568-1241,
E-mail: [email protected], by Rutherford
Publishing, Inc., P.O. Box 8853, Waco, Texas
76714,
1-800-815-2323,
E-mail:
[email protected]. Copyright © 2001
Rutherford Publishing, Inc. All rights reserved.
Material may not be reproduced in whole or
part in any form without the written permission
of the publisher. Subscription price (6 issues),
$49.95 per year in U.S.
Publisher: Ronnie Marroquin
Managing Editor: Kimberly Denman
Editor: Jim Moore
Contributing Editor: Elizabeth Browning
4
Lumber Business Builds Beyond Tradition
Schutte Lumber for the better part of a century.
“We focused on team cohesion, communication
dened by an unmotivated workforce,
styles, and lowering stress,” recalls Donna, “as
poor equipment and a contentious union.
well as pumping up the bottom line, delegation,
New Owner,
and focusing on high-payoff activities.”
New Attitude
The effect was dramatic. “The process adEgner’s son, Bill, came on
vanced us a light year from where we had been,”
board after a successful career with
Fuhrman remembers. Donna followed up with
department store giant Macy’s.
LMI’sOrganizationalNeedsInventoryand then helped
The lumber business was new and
Fuhrman and Egner create a Strategic Plan Team.
incredibly foreign, but Bill Egner
The team meets quarterly, and department manstayed and learned from his father.
agers come to the table with reports of their
“I enjoyed working with my dad,”
area’s progress. Together, they review plans for
Egner says. “He was a great
the next quarter and make adjustments. Emteacher.” Bill’s father revamped
ployee representatives help facilitate team memSchutte’s outmoded wholesale
ber buy-in at every level.
distribution techniques and got
“Communication and sharing of inthe company back to solid ground. Bill Egner poses with one of Schutte’s delivery trucks. Egner’s
formation, especially our financial inHe retired in 1999, but he still buy-in to a planned growth process was critical to Schutte’s
formation, was very powerful,”
consults with his son Bill and continued success.
Fuhrman says. “Each department is emSchutte’s new owner Dan
powered to manage their own expenses.
Fuhrman.
company back on track, one question remained: They were shocked by how much it
When Fuhrman bought the company in Where do we go from here?
took to operate their profit center. The
1997, every staff member stayed on board. Dan
end result is that they are now helping us
spent the first year or so just “cleaning things up”
find ways to cut expenses.”
and began creating a new and dynamic sales team.
This openness has helped create renewed
He has 10 salespeople now, and Schutte is
focus on company objectives. “The overall foaggressively developing a network of dealers as
cus,” Fuhrman says, “is commit and deliver.” To
well. This is a radical departhat end, Schutte has
ture from past marketing
partnered with local
styles.
“If
chain Westlake
“We focused on team cohesion, communicawe want to survive,”
Hardware, which
Fuhrman says, “we have tion styles, and lowering stress, as well as
owns and operates
to change with the pumping up the bottom line, delegation, and
100 local stores.
focusing on high-payoff activities.”
times.”
Sales through Home
Fuhrman had been in
-Donna Craig,
Depot and Lowe’s
and out of several busiare booming, and
LMI Representative
nesses – everything from
the Internet is bring
sporting goods sales to golf
ing in widespread
course development – and
customers as well.
Bill Egner (left) and Dan Fuhrman review product
had no lumber experience.
Fortunately, Bill Egner had the specific knowl- Working Together samples in Schutte’s recently refurbished
showroom.
edge and lumber experience Fuhrman lacked.
Leadership ManageFuhrman put Egner’s strength to best use – he ment®, Inc. representative
made Egner president of the company. Then, Donna Craig helped the Schutte management team
Fuhrman applied himself to managing the carve out their own answer. She took the sixgrowth of the business.
person executive staff through anEffective Personal
“I told Bill that controlled growth required Productivity program in early 1999, which began to
careful planning and delegation,” Fuhrman re- address some issues that had been festering within
– continued on page 5 –
– continued from page 1 –
members. Bill began looking for someone to help
with the planning process; Fuhrman sat back and
waited. “Bill’s buy-in was critical,” Dan says. “We
just needed to find someone who could provide us
with the tools to create a workable, strategic plan.”
Indeed, once Egner and Fuhrman had put the
5
meeting each week for company employees
ranging from foremen to the showroom man– continued from page 4 –
ager. “The end result,” according to Fuhrman,
“We even ship prod“is that about 80 percent of our people are really
ucts to Hawaii,”
working together as a team.”
Fuhrman laughs.
“We’re bringing more employees
He and Egner
into a position where they have ownerfocus on updating
ship in our processes,” Fuhrman says.
Schutte’s Internet
“Before, our company was driven by
presence, and they
just one person. We don’t run that way
are
constantly
anymore. We need everyone working
searching for new
together toward a common goal if we’re
and
innovative
to be successful. The LMI process proproducts to bring to
vided the framework to set goals, track
market.
our progress, and learn along the way.”
Market presence The Schutte team immediately following the completion of a meeting to
Learning is critical in an industry
is a key concern for update progress on the company’s strategic plan. Bill Egner is just right of
beset
by what Fuhrman calls “infinite
Fuhrman as he and center in front; to his left, Schutte CFO Stacy Fyock; Sales and Marketing
change.” He and the Schutte team must
Egner
manage VP Bob Bridgham is at far left; and Dan Fuhrman stands second from right
work closely with conservationists, for
Schutte’s far-reach- in the back row.
example, and continually monitor the use of
capabilities. When homeowners or con- alternate materials in residential construction.
tractors search for ironwood decking or
“Every new day brings a new challenge,”
“Before, our company was driven
exotic moldings, Schutte is frequently says Fuhrman. The chain-store market, alby just one person. We don’t run
enough the last stop.
though a boon to the bottom line, can be tough
that way anymore. We need evto manage. Sales representatives call in with new
Delivering the Product
eryone working together toward
The LMI process has done much to crises and challenging opportunities. A growa common goal if we’re to be
facilitate Schutte’s marketing efforts. LMI ing legion of upscale homeowners want somehas also played a key part in creating and thing new and unique. “We have to handle all of
successful. The LMI process prodelivering the product as well. “Those it,” Fuhrman says. “And above all, we have to
vided the framework to set goals,
continue to change,
assessments
track our progress, and learn along
grow and innoprovided us
the way.”
vate.”
with the be– Dan Fuhrman ginning of
The lumber industry isn’t cut-andour team netdried anymore. As a
ing sales network. Fuhrman hosts a quar- w o r k , ”
player in a game
terly meeting with the reps, emphasiz- F u h r m a n
where change is an
ing the company’s commitment to de- says, “and
unremitting contwo
liver innovative products within a defi- with
stant, Schutte
nite time frame. Frequently enough, the unions repreLumberhaslearned
reps themselves provide ideas for new sented onthe necessity of
products. “They’ve bought into us, and site, that kind
building beyond
we’re committed to providing whatever of teamwork
tradition.
they need to be successful,” Egner says. b e c o m e s Schutte president Bill Egner asked LMI affiliate Donna
After spending a century mired in pretty criti- Craig to facilitate Schutte’s strategic planning process.
“The biggest question we faced,” Egner remembers, “was
traditional marketing methods, Schutte cal.”
LMI as- where do we go from here?”
Lumber is fast becoming an innovator
in an industry that now thrives on inno- s e s s m e n t
vation. Schutte’s lumber remanufac- tools helped members of the Schutte team
turing facility is special in itself; only learn to trust each other. “We now review
one other lumber company in the coun- and attain our goals together,” Fuhrman
try has an on-site mill with the same says. He runs a one-hour management
Lumber Business Builds Beyond Tradition
JIM MOORE ON INNOVATIVE LEADERSHIP
INNOVATIVE LEADERSHIP:
A Portrait of
Edwin H. Land
ven if the name Edwin Herbert Land is unfamiliar to
you, odds are you’ve used something he invented.
Maybe you have a pair of polarized sunglasses in your
car or a Polaroid camera at home. Dr. Land, the second-most
prolific inventor America has ever known, obtained more than
500 patents during his lifetime. His most important invention,
however, was the Polaroid Corporation, which he built from
the ground up.
Land’s fascination with science began in early childhood
and followed him into the adult world of work. He was the first
to develop sheet polarizer, used in industry to untangle waves
of light. He tried unsuccessfully to interest the automotive
industry in polarized headlights, but auto safety had not yet
become a real concern in Detroit. Polarizers found their way
into such diverse products as aviation goggles and 3-D movie
glasses.
It was Land’s invention of the instant photographic process
that was to bring him and his company to the forefront of
American technological expansion. Polaroid photography was
a national craze in the 1950s and reached its zenith with Land’s
introduction of the SX-70 camera in late 1972. At that time,
many observers believed Polaroid owned the greatest technological monopoly on earth.
E
The Polaroid Experience
Land led his company by sheer force of will. He attracted
supremely qualified scientists and businesspeople to Polaroid
not by paying them more – a good many employees left betterpaying jobs to work for Land – but by challenging them more.
“You want to work here because we’re doing exciting things,”
he told one prospective laboratory assistant. The comment
was more statement of fact than inducement. Indeed, Land
knew his greatest value to his company lay in the area of
product development. Although he consulted with Polaroid
officers on advertising campaigns and product introductions,
he felt most at home in the lab, where he might work several
days without a break.
So intently did Land focus on each new endeavor that, for
a time at least, the particular product or project became the
center of the Polaroid experience. The SX-70 project, for
example, dominated the entire company for almost a decade.
The final result, the SX-70 camera and instant photographic
system, was quite possibly the most elegant photographic
product ever introduced. Land, for all his effort, would have
had it no other way.
A Harvard dropout – the “Doctor” was an honorary title –
Land knew better than most entrepreneurs that finding ways
6
to challenge himself and his team was by
far the best method for building a prosperous business. He developed a penchant
for demanding the accomplishment of
the impossible, and he and his staff almost
always succeeded.
Frustrated Analysts
You do not build a giant corporation without developing some
powerful enemies, however. Land’s
worst nemeses were Wall Street
A rare autographed photo of analysts, who still remain someEdwin Land, circa 1965.
what mystified by Polaroid’s continued
existence. Because Land saw the success of each new Polaroid product as
essentially a sales job, he paid little attention to the balance sheet. This
frustrated analysts, who were – and are – perpetually concerned with the
“bottom line.”
“The bottom line,” Land told one exasperated stock analyst, “is in heaven.”
Land’s response is a window to the heart of his leadership
style. He believed strong top-down leadership was a moral
imperative. While he empowered his employees to use their
creative talent, Land believed he knew best what was right for
Polaroid. Similarly, he made decisions about Polaroid’s product line based on what he believed was right for the consumer.
The fact that he was right more often than not owed itself
to Polaroid’s unique product and the exciting times in which
Land and his company rose to worldwide prominence. What
really drove Land and Polaroid was the exhilaration of transforming the mind’s eye into commercial reality. Land had the
ability to focus on the challenge rather than the choices.
His passion for excellence remains something for all of us
to emulate.
What can we learn from Edwin Land’s leadership style?
Three things: First, positive attitude toward company, product, and consumer is vitally important. Second, innovation
requires energy and talent, and both demand the channeling
influence of strong leadership. Third, a properly articulated
vision is bound only by the dictates of a marketable product.
Edwin Land died in 1991 at the age of 82. His company
survives him, but even those who think tenderly of the
Polaroid Corporation admit the business has lost some of its
innovative edge simply because other companies are now
innovating so well. Many of these cutting-edge companies
have tried to follow Polaroid’s innovative leadership style.
Land would have thought this the ultimate compliment. n
Jim Moore is the author of six books, including several political and
business biographies. He is Communications Director at Leadership
Management®, Inc.
Additional Reading: Insisting on the Impossible , by Victor K.
McElheney; Land’s Polaroid, by Peter Wensberg; and The Instant
Image, by Mark Olshaker.
LMI’S TOP 10
7
The Top 10 Leadership Books of the
1990s
electing the top 10 leadership books of the last decade was not an easy task. So many of the leadership books on the
market today can enhance leadership abilities and educate leaders on how to become more effective and successful.
To identify the top 10 leadership books of the 90s, we surveyed leaders across America to develop the list below. Your
favorite may or may not be one of these 10, but odds are you have read many of the books listed.
S
LMI believes every leader can benefit from reading them all!
Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in
Your Life
By Spencer Johnson
Who Moved My Cheese? focuses on the simple, yet profound message that things change. Life always
has changed and always will change. Change can be viewed in one of two ways – as either a blessing
or a curse – but not an option. Johnson observes that while there is no single way to deal with
change, the consequence of pretending change won’t happen is always the same: The “cheese”
eventually runs out.
The Seven Habits of Highly Effective People
By Stephen R. Covey
This book broke new commercial ground when it first appeared in 1990, and it continues to be a
business best-seller with more than 10 million copies sold each year. The Seven Habits of Highly Effective
People is a classic in the world of personal development. As a respected leadership authority, Covey
continues to help readers claim victory in both the personal and business arenas.
Life Strategies: Doing What Works, Doing What Matters
By Phillip C. McGraw, Ph.D.
Author Phillip C. McGraw is a psychologist who calls himself a strategist, and he showcases his unique
perspectives in this book. Life Strategies can help readers shape their lives to fit their goals rather than
simply react to what happens to them. McGraw encourages readers to be personally accountable for
every element of their life. He stresses that you can erase negative “epidemic behaviors” in your life
and ultimately reach your goals.
The Balanced Scorecard: Translating Strategy into Action
By Robert S. Kaplan and David P. Norton
The Balanced Scorecard is essentially an accounting text for people without a strong business background who have a high threshold for tedium. However, Kaplan and Norton have created a successful
system to measure and manage corporate goals such as mission statements, customer satisfaction, and
employee fulfillment. Based on a long-term study of five different companies, the “balanced
scorecard” can serve as a performance benchmark for any organization.
You can find these books and other helpful resources at your local bookstore or library.
8
The Goal: A Process of Ongoing Improvement
By Eliyahu M. Goldratt and Jeff Cox
Many managers buy books for appearance or show, but readers ofThe Goal are hard-pressed to put the book down. Goldratt
and Cox’s system helps readers coordinate the efforts of workers and production supervisors to eliminate bottlenecks in
manufacturing. This book is a must-read for leaders who desire to improve productivity.
Leading Change
By John P. Kotter
In Leading Change, Kotter suggests that change often fails in corporations because change itself does not alter behavior. He
identifies the most common mistakes in implementing change and offers eight steps for leaders to overcome obstacles.
Kotter notes that substantive change requires true leadership, not merely an elitist autocracy. In his view, businesses that
emerge as winners in the new millennium will be those that have outgrown their rivals.
The Fifth Discipline: The Art and Practice of the Learning Organization
By Peter M. Senge
Senge popularized the notion of responding to change with this book.The Fifth Discipline is based on the fruits of Senge’s meditations
in the fall of 1987, when he first conceived of a “learning organization” using “systems thinking” as the root of a new and vibrant
management philosophy. While the text may be somewhat long for some readers, its principles are virtually timeless and remain
incredibly relevant to business cultures in the new millennium.
The Leadership Challenge: How to Keep Getting Extraordinary Things Done in
Organizations
By James M. Kouzes, Barry Z. Posner, and Tom Peters
The new edition of this book expands its research base to some 60,000 leaders. At its heart, however, the book is still the distilled
essence of Tom Peters’ popular training program. It does a good job of emphasizing leadership as a critical and often missing
element in human organizations. The broadened scope of the book provides a fresh perspective to leaders facing 21st-century
concerns such as e-commerce and public cynicism.
Every Business Is a Growth Business: How Your Company Can Prosper Year After
Year
by Ram Charan and Noel M. Tichy
Charan and Tichy assert that no business can be fully mature and still continue to survive. Continued business growth requires
adherence to two principles: strategy from the outside in and changing the genetic code. As most people know, corporate culture
is a tough thing to overhaul. In response, this book offers a series of concrete steps to promote continued growth and survival
in a changing business world.
Becoming a Person of Influence: How to Positively Impact the Lives of Others
by John C. Maxwell and Jim Dornan
Considered by many to be John C. Maxwell’s finest effort, this book has a unique and eloquent soul. Maxwell and Dornan mix humor,
heart, and personal insight as they share their best lessons from decades of experience in the business and nonprofit arenas. They
offer practical and easy-to-apply strategies that will help enable readers to develop their full leadership potential in every area of life.
9
MAKING DECISIONS:
Intuition and the
Search for Full
Potential
he majority of leaders thrive on left-brain thinking.
That portion of the brain, of course, excels in number
skills and logic. The right brain, on the other hand,
contributes largely to insight and imagination, which
surprisingly few leaders consider to be valuable decisionmaking skills.
Left-brain thinkers can “balance” their minds by learning to
access their imagination and become more sensitive to the wisdom – the required and often missing element in the process of decisionissues surrounding them. But can this “balancing act” have a making.
positive affect on decision-making?
Yes. Intuition is simply the innate ability to make good Using Intuition
Mere understanding and acceptance of the mental process of
decisions with less-than-complete data. Spinoza, the 17thcentury philosopher, called intuition a “superior way of know- intuition doesn’t make it easier to follow innate wisdom or
ing ultimate truth without the use of prior knowledge or instinct. This difficulty – the constant battle between the need
reason.” Leaders, perhaps by necessity, tend to overemphasize for reason and logic and the desire to follow one’s instincts – led
scientist Albert Einstein to hang a sign in his Princeton office.
facts, reason, and logic.
Unfortunately, logic and analysis can only go so far. In The sign read, “Not everything that counts can be counted, and
many cases, the use of personal intuition is the only way to not everything that can be counted counts.”
Whether you prefer to call it a “gut feeling,” “a hunch,” or
increase available options. Beyond the boundaries of so-called
“business instinct,” you probably use intuanalytical thought, intuition can draition in decision-making on a fairly regular
matically increase your personal efbasis. Ray Kroc, who initially balked at the
fectiveness. But how?
“Facts and figures eventually 2.7 million-dollar price tag for the
Part of the answer comes from an
run their course. Often, you McDonald’s franchise, said his “funny bone
understanding of the intuitive prohave to rely on intuition.”
instinct” urged him to go ahead and close the
cess. In a typical business scenario,
– Bill Gates deal. The question begs itself: Can your intuintuition is actually created or sparked
ition make you another Ray Kroc? Perhaps!
by a combination of three events.
By creating a greater awareness of your own
First, a question, problem, or crisis
intuitive nature, you can learn to trust your
arises, or a decision is required. The
instincts,
even
when
you have evidence to the contrary.
second element is the increased awareness of a clearly defined
Start with some quiet time alone. A quiet mind gives way to
goal. The third element is a sensitivity to situations and
patience
and relaxation. None of us likes to make decisions
circumstances that affect the decision you face.
under
pressure;
this practice tends to thwart your intuition and
By comparing your problem or situation with your intention or objective, you heighten personal receptivity to new forces you to rely solely on incomplete, mismanaged, or
thoughts and solutions. This process helps determine whether misunderstood data. Seek intuitive “impressions” that you can
one direction will better suit the achievement of your goals, or examine, study, and ponder. As you increase your awareness of
whether another path will lead to a different and more desir- clearly defined goals, the central problem comes into sharper
focus. This process is the genesis of your intuitive “edge,” and
able outcome.
Adding awareness of a clearly defined goal brings a whole the more you seek and trust it, the harder and more successfully
new level of reasoning. Increased awareness facilitates the it will work for you.
Most leaders and managers have a hard time with this first
recognition of factors that might contribute to a given situation or a specific solution. Awareness acts on both problem and step. After all, experience has taught the value of making careobjective, serving to more clearly define both elements. The
– continued on page 10 –
end result of this mental “melding” process is innate, intuitive
T
CHARLES G. WILLIAMS
Intuition and the Search for
Full Potential
– continued from page 9 –
ful decisions based on sound data. As Bill Gates points out, at some
point the data finally runs out. What do we
do then?
Deciding to Decide
Many individuals in positions of leadership react to a
lack of data by deciding not to decide. A target date is the
best and easiest cure for this sort of procrastination. When
the deadline rolls around, you’ve committed to making a
decision. Meanwhile, your intuitive “edge” may have provided the best answer.
The real issue, however, is developing a greater level of
self-reliance. Psychologist Herb Goldberg blames past conditioning for the
general lack of
self“If you tune into the integ- executive
“The
rity of your own vision, your reliance.
struggle to learn
own desire, and your own to listen and
creativity, you can achieve respect intuitive,
inner promptwhatever you want.”
– Laura Day, ings,” Goldberg
“is the greatIntuition Specialist says,
est challenge
of all. Conditioning has been so
powerful that it has all but destroyed our ability to be
self-aware.”
Intuition Specialist Laura Day maintains that, in business, individuals are most successful when they simply try
to be themselves. “If you tune into the integrity of your
own vision, your own desire, and your own creativity,”
Day says, “you can achieve whatever you want.”
The process of “tuning in” is as individual as each of us.
For example, Thomas Edison was famous for retiring to
take a nap when faced with a particularly vexing problem.
The inventor would often jerk awake with a solution to his
difficulty. His assistants wondered aloud how Edison ever
got anything done. To them it seemed as though he slept all
the time!
Edison’s example proves a vital point: Every great
inventor, innovator, thinker, businessperson, or leader has
been considered a fool at one time or another. What
transformed these individuals into the people we strive to
emulate was their ability to move ahead by trusting their
intuition, insight, and faith in themselves.
10
Good Leaders Plan for
the Unexpected
he failure to plan for the unexpected is one of the biggest
mistakes people and companies make when working on
their strategic and tactical plans. It’s evident in
many areas, including their short- and long-term planning and
in both their personal and business plans. Here are
a few examples:
Budgeting for expenses. It’s amazing how many people don’t budget for the
unexpected expenses that occur almost every month. Because of this,
they often experience a shortfall at the end of the month. It’s not
unusual to see this lack of planning result in a 10 percent or more
shortfall during any given month. This in turn has a compounding
effect. When you overspend the budget in one month, you start the next
month in the hole!
Planning to be somewhere on
time. The number-one reason
why most people don’t arrive on
time is that they don’t plan for
the unexpected, such as traffic
delays, weather, or last-minute
phone calls. They end up 15 to 30
minutes late – often with a room
full of people waiting or an important sales call being missed.
A business downturn or problem. Most people
don’t want to anticipate future problems. They consider it to be negative. Well, negatives occur every year
in business, and if you don’t plan for them to happen, you may be caught
short.
Here’s a specific example of how the unexpected can be planned for and
even eliminated: A business owner had a difficult time meeting his annual
goals for revenues and profit because something happened every year that
caused a down month. In this situation, the unexpected became the
expected, but there was no strategy to overcome the problem until he
devised a special plan.
Every month, the owner planned to accomplish 110 percent of the goals for the year. Before the year was out, the entire
company had reached 100 percent of its goals for the year. Any
extra revenue became the “whipped cream” on top of the cake.
Even with unexpected downturns, which did occur during the
year, the company achieved and actually exceeded both its
revenue and profit goals because the business owner planned
for the unexpected.
T
By Charles G. Williams, owner of Creative Business Concepts, Inc., a
company dedicated to helping organizations improve the bottom line by
using planning and goal-setting.
11
DIANNA BOOHER ON FEEDBACK
The Need for Feedback
s a busy professional constantly
balancing schedules, deadlines,
and priorities while dealing with
a vast variety of personalities, there’s
an often-neglected resource that can
make the difference between success
and failure and between conducting
business with relative strangers or
trusted partners.
This resource is feedback – and it’s
a marketing tool worth its weight in
gold if mined consistently and
effectively.
While many professionals spend
time assimilating, assessing, and acting upon information after a project
or event, relatively little time is spent
reviewing, reevaluating, and reorganizing information during the project
or event. Those who want to stay
ahead in this ever-changing Information Age see constant and comprehensive feedback not as a luxury, but
as a necessity. Here’s how you can
utilize feedback:
Take the initiative. Most people mistakenly
assume that feedback will automatically appear on their desk, in their E-mail, inbox, or
in person. While they sit on their hands
waiting and wondering, more insightful and
opportunistic professionals know that most
feedback has to be extracted, digested, and
analyzed. Avoid leaving the responsibility
to others. It’s your job, so take the initiative.
You have too much to lose if you don’t get
feedback and so much to gain if you do.
Ask the right people the right questions. Many
times it’s not that people don’t ask for
feedback, but that they ask the wrong person or the wrong question. As a result, they
end up with gossip or guesswork. You may
ask associates for information only clients
would know, clients about things only vendors would know, and vendors for data only
associates would know. To get the right
response, you have to ask the right person.
It’s your responsibility to phrase your questions so that others understand the content
and scope of your request. Do you want
A
general or specific information? Personal opinion or survey data? Selected input or overall
consensus? The more focused your requests,
the more precise and comprehensive your responses will be.
Follow up with smart questions. After you’ve
initiated and sought out the right people, interpret and analyze what they’ve said. Does their
feedback need your feedback? “I was expecting
more help from your support staff” or “I didn’t
follow all the points of your presentation” are
potentially helpful comments, but they need
further explanation. Was your staff unavailable? Unwilling to help? Or unaware they were
needed? Did you need to provide additional
information in your presentation? Define things
more clearly? Bring demos? Provide specs from
the manufacturer? If you don’t probe deeper
into unclear feedback, you’ll be left with mere
complaints.
Draw on expertise from your partners. Most of
the professionals you work with are just that –
professionals – experts in their fields of finance,
public relations, travel coordination, or meeting planning. Of the myriad of decisions you
face daily, few of them haven’t been heard of and
successfully dealt with by others. Instead of
insisting on a 5:30 p.m. start for your downtown mixer, ask the shuttle company for the
preferable times and routes. Though you used
a particular design for your brochures last year,
see if the printer has any creative alternatives.
When setting up a room, get suggestions from
the hotel staff as to the most effective ways to
do so. Be careful not to have your mind set so
firmly that you can’t entertain better or newer
suggestions.
As with medicine, apply liberally to the affected
area. After you solicit and understand specific
feedback, evaluate it in light of your personal
goals and methods. Is it an accurate assessment or a subjective opinion? Is the person
in a position to know what he or she is
talking about? Is a change in your style or
method worth the effort? Will this change
contribute to your long-term personal or
professional growth? Granted, not all feedback is created equal. But don’t just stand
there – do something. Evaluate. Reconsider.
Modify. Reaffirm. But do something!
Whether you’re dealing with caterers or clients, entertainers or executives, accountants or
advertisers – or all of them at once – feedback is
a great barometer for not only knowing where
you are and where you’re heading, but also for
where your efforts should be focused next time.
Author/speaker Dianna Booher is CEO of
Booher Consultants, a Dallas-based communications firm. Her programs include communication (writing, oral presentations, interpersonal, customer service, gender, listening, meetings, conflict) and life balance/productivity.
She has published 39 books, including E-Writing: 21st-Century Tools for Effective Communication, Communicate with Confidence! and
The Worth of a Woman’s Words. Several have
been major Book Club selections. For information, visit www.booherconsultants.com.
JOHN MAXWELL ON CHARISMA
Charisma Is Overrated
nglish novelist Anthony Trollope
once said, “Marvelous is the power
which can be exercised, almost
unconsciously, over a company, or an
individual, or even upon a crowd by one
person gifted with good temper, good
digestion, good intellect, and good looks.”
What Trollope described is commonly
called “charisma.” It is the ability to
attract others to ourselves.
When you talk about leadership, most
people automatically think about charisma. In fact, many people believe that
charisma is the most important aspect of
leadership. After all, is it not charisma
that wins the election for the politician,
gets recognition for the action, and provides the general with loyalty from his
troops? Is it not the quality that makes
the businessperson successful?
E
ability to lead and influence others is anemic. What is it about character that really
makes a difference?
1. Character Sets You Apart. There was
a time when people who lacked integrity
stood out from the crowd. Now the opposite is true. When you exhibit solid character, people take notice. As time goes by,
your credibility grows. So does your ability to positively impact the lives of others.
It is true that charisma can make people
stand out for a moment. But character can
set them apart for a lifetime.
Charisma Attracts
It is true that charisma attracts people.
Often, it can be the quality that will get
you in the door. But charisma does not
help a person get the job done, and alone
it doesn’t make enough of an impact for
lasting leadership. It does not provide the
kind of substance that sustains leadership day in and day out. The only way to
influence others in a positive way and to
continue doing it over the long term is to
cultivate character.
When it comes to lasting leadership,
nothing is more important than character. As Robert A. Cook said, “There is no
substitute for character. You can buy
brains, but you cannot buy character.”
Character Sustains
Character embodies all of who you
really are. It is the inner fiber of your
being. It is your inner self in action. It
reveals what you are truly made of. It is
your substance. It is, as D.L. Moody said,
“What you are in the dark.”
If you have charisma without character, it is only a matter of time before
people find you out. Without character,
you cannot sustain meaningful relationships. And without relationships, your
2. Character Creates Trust. Leadership
functions only on the basis of trust. Charisma can draw people to you, but it gives
them no reason to trust you. It provides no
foundation for the future. But with character, you build trust with others each
time you choose integrity over image,
truth over convenience, and honor over
personal gain. When is the last time you
had a healthy growing relationship with
someone you didn’t trust?
3. Character Promotes Excellence. If
you lead people, good character sets a
standard for everyone who is following
you. People eventually become like their
leader. If leaders compromise on their
standards, cheat the company, or take
short cuts, so will their followers. When a
leader makes character and personal excellence the goal, it creates organizational
excellence. No team is better than its coach,
and no business is better than its leader.
4. Character Gives Staying Power.
During the tough times that all leaders
face, character has the ability to carry you
12
through, which is something charisma
can never do. When you’re weary and
inclined to quit, the self-discipline of
character keeps you going. When loneliness threatens to make you compromise, character provides you with perseverance. When temptation comes, as it
always does to leaders who have power,
it can only be counteracted by integrity.
Your values and personal standards –
not your ability to make others like you
– are the only things that will provide
you enough fuel to keep you going in all
types of circumstances.
5. Character Extends Influence. Charisma, by its nature, does not last long or
extend very far. It is like a flash of
gunpowder. It produces a quick blinding light, but then it’s gone. The only
thing left is smoke. Character, on the
other hand, is more like a bonfire. Its
effects are long lasting. It produces
warmth and light. As it continues to
burn, it gets hotter. Given fuel, it burns
brighter. As it continues to burn, people
continue to be attracted to it. And its
light and warmth can extend to many
people. Charisma alone is like watching
fireworks. The people who witness it
may be impressed for the moment, but
there’s no heat, and the light fails to stay
with them.
What Are You Relying On?
If you are leading people, you probably have some measure of both charisma and character. The question is,
which one are you relying on to lead?
Without character, leadership becomes harder to sustain. You constantly
have to perform to get people to notice
you. But with character, as time goes by,
leadership strengthens, builds, and continues to attract people.
Dr. John C. Maxwell, founder of
The INJOY Group, is dedicated
to helping people maximize their
personal and leadership potential.
He has authored numerous books
including the New York Times
bestsellers The 21 Irrefutable Laws of Leadership
and Failing Forward. He can be found on the
web at www.injoy.com.
13
NEW MILLENNIUM, NEW CHALLENGES:
A Leadership Creed for the 21st Century
he new millennium offers unparalleled opportunities for growth and prosperity. But the challenging times in which we live also pose grave dangers for
leaders and managers who refuse to grasp the necessity for
change. The plain fact is that none of us can afford to manage
in the same way we did 10 or 20 years ago; society, as we well
know, exacts a heavy toll on businesses and organizations that
are unwilling to grow and improve.
Over the past few decades, leaders at all levels have substituted “fad” management skills for leadership essentials. What
we need – and what the times demand – is a return to
principled, skilled management based on timeless leadership
principles. These principles are inherently difficult to master,
which is why many leaders look for easier paths. We believe
that sooner or later leaders must return to the sound thinking until one has mastered the more essential elements, and in our experience,
and basic management philosophies that will, in the end, many leaders and managers have not bothered.
enable us all to take longer strides.
But if change for the sake of change is not an answer, what
However, adapting basic leadership tenets to the demands is? In a word, purposeful and deliberate change must supplant
of the new millennium is only a part of the equation. In terms the eagerness to embrace every new cause or crusade. Just as
of change, selectivity is equally important. The emergence and each of us seeks a reason for existence, productive change
rapid decline of many Internet-related companies clearly dem- demands reasons of its own.
onstrates that grasping at business
The new millennium demands
and management fads is not a substileadership
that is both time-tested
“The problem lies not with our detute for leadership or a cure for manand
cutting
edge. The heavy-handed
sire to grow and become more than autocratic management
agement ills. While keeping up with
techniques of
we already are, but rather in our a generation ago are gone forever. In
emerging technologies is an essential
element of business, the leader who
tendency to readily accept, embrace, their place are loosely defined manchooses to chase technology does so
and apply flawed and simplistic agement styles that require the supat great risk. The Internet, for exsolutions to vexing and complex porting structure of a leadership creed.
ample, is here to stay, but it will not
Businesses and organizations who opproblems.”
yet serve many of the purposes enviwithin the confines of this lead– Drayton McLane, Former erate
sioned for it as recently as a year ago.
ership creed will survive and prosper.
Wal-Mart Vice-Chairman Leaders and managers who choose
Tendency to Accept
Former Wal-Mart Vice-Chairman
not to embrace it will likely be swept
Drayton McLane wrote, “The problem lies not with our desire from the stage of business history.
to grow and become more than we already are, but rather in
The basic elements of this leadership creed are timeless, but
our tendency to readily accept, embrace, and apply flawed and they demand the best that modern organizations and team
simplistic solutions to vexing and complex problems.”
members can offer. At LMI, these five elements have been the
The sad fact is that many leaders tend to eschew proven cornerstone of our process for nearly four decades. Successful
principles for leadership success, claiming that these age-old leaders and managers make these five elements a part of
creeds offer nothing new or that they are “too basic.” The real everyday thought and long-term plans of action. Meanwhile,
problem lies in the fact that many of these individuals have those who continue to look for shortcuts and simple solutions
never learned to practice the most basic elements of their will find them in ample supply, though few will work long-term and none
profession. New information is an almost useless commodity will create permanent change.
T
– continued on page 14 –
14
A Leadership Creed for the 21st
Century
for your dream as you do. Offering buy-in involves offering challenges and
choices; team members will appreciate the opportunity to help decide their
– continued from page 13 –
own destinies.
The fourth element: Confidence in your venture. The
Elements of the Leadership Creed
American psychologist, William James, told us 100 years ago
Element one of the leadership creed is clear thinking.
that the one thing which would guarantee successful compleLeadership and management efforts must be well thought-out.
tion of a doubtful undertaking was faith in the beginning that
Managing on-the-fly will no longer suffice. At every level of
it could be accomplished. Without this sort of faith, your
leadership, clear thinking helps us determine exactly where we
enterprise will probably not withstand the challenge of the
are taking ourselves and our organization. Once we know
times. Those who believe in what they are doing will crowd
exactly where we intend to go, it is easy enough to develop a
out those who don’t; their triumph, in the final analysis, is
concise plan to get there.
more a triumph of the will than of strength or stamina.
That’s element two: Careful planning. Many leaders and managers
The final element of the leadership creed is
have grown accustomed to giving less
raw determination. Challenges will never
thought to designing their success than
fade away and will seldom diminish. Determinathey do to a New Year’s Eve party, for
tion – the refusal to quit – is required to survive
“
Never
give
in.
Never,
never,
never.”
example. To survive in the new millen– Winston Churchill and grow. Because change is now an unremitting
nium, that trend must change and change
fact of life, determination is – and probably
quickly. Progress does not necessarily rely
always will be – an essential element of any
on hour-by-hour planning, but some sort
leader’s personality. “Never give in,” Winston Churchill advised, “Never,
of day-to-day agenda is required to stay on course. The alternative is the
never, never.”
aimless drifting evident in so many organizations that refuse to plan and
The challenges Churchill and his contemporaries faced in
thus sow the seeds of their own demise.
their era were far different from the challenges of the new
The third element of the leadership creed involves organimillennium. Today, leaders and managers must battle largely
zational buy-in. Whatever your mission, passion, or purpose,
internal foes. Today’s leadership creed charts a new channel
you probably cannot achieve it alone. Some managers have
for a timeless river. Those who choose to ply the older streams
become quite jaded about the notion of creating buy-in; insemay eventually find themselves lost and alone. For those who
cure leaders see it as a shortcut to allowing employees to run the
can adapt and overcome, the reward is the promise of the great,
business. Nothing could be further from the truth. Done
vast tomorrow.
correctly, buy-in is the method by which you motivate others to work as hard
Looking for a
Personal Management System
that works like you do?
1-800-876-2389
15
PATRICK J. BELOW ON SUCCESS THROUGH PEOPLE
SUCCESS THROUGH PEOPLE:
Once these leaders are identified
and developed, the organization is
well-positioned to achieve its
planned results.
An Organizational
Model
he measure of organizational success is always the same:
consistent achievement of anticipated results. Regardless of the size of your organization, certain objectives
and performance targets must be achieved. Let’s focus on the
two most important elements for achieving planned results:
organizational leaders and results-based planning.
Management and leadership exist to bring out the best in
people. Good managers are both results-oriented and peopleoriented; they’ve learned to focus team members’ mental, emotional, and spiritual abilities on the achievement of organizational goals. Good managers realize that organizational performance is best attained by developing team members in the
context of a results-based planning process.
T
Types of Leadership
Leadership may be broken down into two types: personal and
organizational. Personal leadership involves understanding and
motivating oneself. Organizational leadership, of course, involves understanding, involving, and leading others. Managers
and supervisors are organizational leaders, but they represent
only about 10 percent of the people in an organization.
If the organization is to succeed, the ranks of organizational
leaders must expand. At a minimum, a quarter of the people
working in a company need to function as organizational leaders.
But such leadership does not necessarily involve a title or
position; organizational leaders simply think and act in the best
interests of the organization. These individuals want to be
challenged, and they have lots of ideas. They know how to make
things happen and want to play a more active role in helping the
company to grow and improve.
Leadership Management®, Inc.
P. O. Box 2503
Waco, Texas 76702-2060
Website: www.lmi-inc.com
Dual Role
Organizational leaders have a
dual job. First, they play an active
role in helping put together plans
focused on the entire organization.
This overall plan then fosters the
development of unit and individual
plans. Second, organization leaders
inspire and lead team members,
helping them use their knowledge and skills to carry out those
plans. This dual approach ensures an organization-wide commitment toward the achievement of the organization’s
objectives.
But organizational leaders are not born – they must be continuously trained and developed. Jack Welch, the respected CEO
of General Electric, described a big part of his job as simply
“people development.” “What great companies need,” Welch
says, “are great leaders who have the ability to energize others.”
It takes a combination of solid results-based plans and outstanding leaders to achieve superior organizational results. The
bonding agent in the process is the team of organizational
leaders. To achieve organizational success, these team members
must be recruited, trained, and rewarded for outstanding results...
but the investment will be worth it!
PatrickJ.Below isfounderofBelowandAcombManagementConsultants,Ltd.,inMadison,
Wisconson. The firm specializes in strategic and operational planning with small- and
medium-sized companies. Below earned an MBA from Indiana University and is the author
of two books, The Executive Guide to Strategic Planningand The Executive Guide to
OperationalPlanning.
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IN OUR NEXT ISSUE:
• Client Showcase:
Success with Citibank
• The Art of Disciplined
Leadership
• Innovative Leadership
Profile: Elizabeth the
Great
• Patrick J. Below on
Strategic Planning