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1 1 Leadership Evolution: From IQ → EQ → CQ Character Matters in Leadership Your Leadership Matters Inc.© 2 LEADERSHIP EVOLUTION: IQ → EQ → CQ Your Leadership Matters Inc.© 3 LEADERSHIP EVOLUTION: IQ → EQ → CQ Leadership Is: Direction & Guidance toward a desirable outcome Influence Inspiration & Vision Motivation of Others Wisdom to Know Where to Go Your Leadership Matters Inc.©

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Leadership Evolution: From IQ → EQ → CQCharacter Matters in Leadership

Your Leadership Matters Inc.©

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LEADERSHIP EVOLUTION: IQ → EQ → CQ

Your Leadership Matters Inc.©

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LEADERSHIP EVOLUTION: IQ → EQ → CQ

Leadership Is:

• Direction & Guidance toward a desirable outcome

– Influence

– Inspiration & Vision

– Motivation of Others

– Wisdom to Know Where to Go

Your Leadership Matters Inc.©

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Character Quotient (CQ) - CQ represents the element of a person’s profile revealing their underlying attitudes, beliefs and commitments that shape their behaviour.CQ

Intellect – Education – Reasoning Abilities – Job Skills Proficiency IQ

EQSelf Awareness – Self Management

Social Awareness – Relationship Management

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LEADERSHIP EVOLUTION: IQ → EQ → CQ

Your Leadership Matters Inc.©

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LEADERSHIP & IQ

IQ = Intelligence Quotient

• Intellect

• Problem solving skills

• Ability to learn and comprehend quickly

• Logical reasoning skills

• Ability to understand complex issues

• Planning skills

Your Leadership Matters Inc.©

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LEADERSHIP & EQ

EQ = Emotional Intelligence

• Research by Salovey & Mayer (1990)

• Authors: Daniel Goleman, Steven Stein & Howard Book

• EQ skills – Internal/External Management of Emotions:

– Self-awareness, Self-regard

– Self-management, Self-control

– Adaptability, Flexibility

– Empathy, Interpersonal Relationship Management

Your Leadership Matters Inc.©

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LEADERSHIP & CQ

CQ = Character Quotient

• Underlying attitudes, beliefs, commitments

• Traits, Values and Virtues (Crossan, Gandz and Seijts)

• “a distinguishing characteristic or quality especially of one’s personal nature” (dictionary.com)

Your Leadership Matters Inc.©

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LEADERSHIP & CORPORATE CULTURE

“…culture isn't just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”

Lou Gerstner, Former CEO IBM

Your Leadership Matters Inc.©

“The key to our

success is years and years of DNA

development that is not replicable

outside the company.”

Kevin Rollins Former CEO Dell

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CORPORATE CULTURE

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Trust, Purpose, Commitment, Work Ethic,

Excitement, Accountability, Enhanced Performance, Increased Productivity,

Team Efficiency and Overall Dedication, Contribution

Fear, Apathy, Politics, Conflicts

Burnout and Stress, Selfishness, Entitlement,

Disengaged Employees, and Unnecessary Turnover

Your Leadership Matters Inc.©

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CORPORATE CULTURE & PERFORMANCE

Research: Corporate Culture and Performance (Kotter & Heskett, 1992):

• Corporate Culture impacts long-term economic performance

• Corporate Culture’s that inhibit strong performance are not rare

• Corporate Culture is tough to change but can be made more performance enhancing

• Strong Corporate Culture ≠ Strong Performance

Your Leadership Matters Inc.©

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CULTURE, LEADERSHIP & CHARACTER

Conclusions:

• Corporate Culture needs to be managed – it impacts results.

This is a Leadership Issue

• The Type of Culture Matters – there are low-performing and high performing cultures.

This is a Character Issue

Your Leadership Matters Inc.©

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CHARACTER MATTERS

"Successful leadership is not about being tough or soft, sensitive or assertive, but about a set of attributes. First and foremost is character”

Warren Bennis

In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you."

Warren Buffet, CEO, Berkshire Hathaway

Your Leadership Matters Inc.©

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LEADERSHIP EVOLUTION: IQ → EQ → CQ

Leadership Qualities:

When identifying people who will drive long-term success and significance, the elements needed to achieve this are:

• A strong mind (high IQ);

• A strong ability to influence people on an emotional level (high EQ)

• A strong positive character (high CQ)

Your Leadership Matters Inc.©

14Your Leadership Matters Inc.©

CQ

IQ EQ

LEADERSHIP EVOLUTION: IQ → EQ → CQ

Scenario 1Limited

Influence

Scenario 2Weaker

Decisions

Scenario 3Misaligned

Values

IDEAL

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WorkplaceCulture

Professional

Personal

Leadership Effectiveness:• Personally• Professionally• Organizationally

LEADERSHIP : BUILDING CQ

Your Leadership Matters Inc.©

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LEADERSHIP : BUILDING CQ

Leadership Imperative:

“to improve the predictability of their human capital decisions” regarding their culture, talent acquisition, employee development and retention initiatives.

Your Leadership Matters Inc.©

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LEADERSHIP : BUILDING CQ

Leadership Effectiveness with a strong CQ must begin with the Corporate Culture and the Leadership Team.

Your Leadership Matters Inc.©17

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LEADERSHIP : BUILDING CQ

• Model the CQ Culture – Personal Leadership Effectiveness encouraged at all levels

• Communicate a clear set of Corporate Values

• Align organizational process to support the culture and the values

– Visible symbols

– Reward systems

– HR practices

Your Leadership Matters Inc.©

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LEADERSHIP : MODELING CQ

Model the CQ Culture – Personal Leadership Effectiveness encouraged at all levels

Actions of senior leaders speak louder than words

Provide training & development leadership and management that integrates CQ principles

Enable feedback to learn if CQ norms are not being followed (tool: training on tough communication)

Use external resources to support senior management (i.e. use a coach as a tool for accountability)

Foster reinforcing feedback for high CQ behaviours

Your Leadership Matters Inc.© 19

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LEADERSHIP : CORPORATE VALUES → CQ

Communicate a clear set of Corporate Values

Identify values that will build CQ and have long term positive impact

Model the values – no one will believe that the values matter if they are not modelled

Communicate the values where decisions are made

Include the values in the reporting processes

Build the values into HR practices

Your Leadership Matters Inc.© 20

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LEADERSHIP : ALIGN PROCESSES → CQ

Align organizational process to support the culture and the values

Symbols, Ceremonies & Stories – celebrate good character-related behaviours

Align Performance Management Systems – evaluate CQ

Reward systems – ensure that high CQ leaders are rewarded

Enhance talent acquisition practices to incorporate more robust strategies for measuring CQ

Focus on Character Competencies during on-boarding and employee development

Your Leadership Matters Inc.© 21

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LEADERSHIP : BUILDING CQ

• Focus on Character Competencies

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Positive Attitude

Integrated Life

Change Adaptive

• Take more time to assess character competencies

• Don’t just rely on intuition

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LEADERSHIP EVOLUTION: IQ → EQ → CQ

Your Leadership Matters Inc.©

Does Impact the Bottom-line…

The Reality Today in the Workplace is…

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Sources

• Emotional Intelligence, Peter Salovey and John D. Mayer, Baywood Publishing Company Inc. 1990;

• Corporate Culture and Performance, John P. Kotter and James L. Heskett, The Free Press, 1992;

• In Search of Virtue: The Role of Virtues, Values and Character Strengths in Ethical Decision Making, Mary Crossan and Daina Mazutis and Gerard Seijts, Springer Science+Business Media Dordrecht, 2013 ;

Your Leadership Matters Inc.© 24

• The EQ Edge: Emotional Intelligence and Your Success, Steven J. Stein and Howard E. Book, John Wiley & Sons Canada Ltd., 2006;

• Primal Leadership: Leaning to Lead with Emotional Intelligence, Daniel Goleman, Harvard Business School Press, 2002;

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LEADERSHIP EVOLUTION: IQ → EQ → CQ

Thank you

David Town

Your Leadership Matters Inc.

[email protected]

647-225-8696

www.yourleadershipmatters.ca

Your Leadership Matters Inc.©