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LEADING STRATEGIC CHANGE 1 LEADING STRATEGIC CHANGE in TURBULENT TIMES © James G. Clawson NCSL Chicago, IL October 2009 October, 2009 James G. Clawson Darden GSB, University of Virginia

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Page 1: LEADING STRATEGIC CHANGE in TURBULENT TIMES · 2009-10-30 · “Culture eats strategy for breakfast. ... many ways the story of General Motors since the 1960many ways the story of

LEADING STRATEGIC CHANGE

1

LEADING STRATEGIC CHANGEin TURBULENT TIMES

© James G. ClawsonNCSL Chicago, ILOctober 2009October, 2009James G. ClawsonDarden GSB, University of Virginia

Page 2: LEADING STRATEGIC CHANGE in TURBULENT TIMES · 2009-10-30 · “Culture eats strategy for breakfast. ... many ways the story of General Motors since the 1960many ways the story of

Our Agenda

2

© James G. Clawson

Our Agenda

1 Strategic Challenges & Leadership Implications1. Strategic Challenges & Leadership Implications2. Leading Self3 Leadership Level Techniques3. Leadership Level Techniques4. Your Leadership Foundation

Overnight Break

5. World Class Performance6. Conclusion

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Turbulent Times Turbulent Times 3

© James G. Clawson

for our Generationfor our GenerationPopulation GrowthPopulation GrowthEnergySustainabilityClimate ChangeClimate ChangeWaterReligious Conflict & TerrorismGlobal Communication ExplosionGlobal Communication ExplosionDrugsImmigrationTechnology Advancements (includingTechnology Advancements (including weaponry)HealthcareImploding Global Economy—p g yfluctuations likely to continue

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4

© James G. Clawson

What will it take to

deal with / deal with / lead in

turbulent times like these?like these?

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Problems: Problems: 55

The Source of Change?The Source of Change?

“ th t ti i t f ff ti “…the starting point of any effective change effort is a clearly defined business problem.” Beer, Eisenstadt, Spector—Why change programs don’t produce change. HBR

What problems do you SEE?p yWhat kind of problem is strong enough to motivate you to initiate change?to motivate you to initiate change?

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STRATEGIC6

STRATEGIC CHALLENGES

•SOCIETAL•ORGANIZATIONAL

WORK GROUP UNIT•WORK GROUP or UNIT•INDIVIDUAL

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h h llh h ll

7

What challenges What challenges d f t d ?d f t d ?do you face today?do you face today?

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HistoricallyHistorically

8

© James G. ClawsonHistorically, Historically, Problem Problem

LeadershipLeadershipLEADERSHIP ACTIVITY Questions AnswersLEADERSHIP ACTIVITY Questions Answers

Problem Solving Old New

Problem Finding New Old

Problem Creating New Newg

Adapted from Pathfinding by Harold Leavitt 1995Adapted from Pathfinding by Harold Leavitt, 1995

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The Structure of The Structure of 9

© James G. Clawson

Problems:Problems:WantWant--Got GapsGot GapsWantWant Got GapsGot Gaps

1. Stakeholder1. Stakeholder

2. WANT 3. GOT

Gap?

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That said, there’s an “issue” with goals and achievement with goals and achievement orientation..

•Goals tend to set up a “problem orientation” to lifeorientation” to life….

•How can problem solving be a p gproblem?

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The Problem with The Problem with 11

Problem Solving: OSCILLATIONProblem Solving: OSCILLATION

R i i h bl l d i l h Recognizing the problem leads to action to solve the problem

Leads to less intensity of the problemy pLeads to less action to solve the problemLeads to the problem remaining

False sense of security: you know just what you are supposed to do: find and solve problems. If you didn’t h bl h ld hi k b ? H ld have problems, what would you think about? How would you spend your time?

What drives the action is the intensity of the problem y pREACTIVE OSCILLATION.

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“P bl ” I l bl“P bl ” I l bl

12

“Problems” are Insolvable“Problems” are Insolvable“All of the greatest and most important problems of g p plife are fundamentally insoluble…they can never be solved, but only outgrown. This “out growth”

d f h i i i iproved on further investigation to require a new level of consciousness. One higher or wider interest appeared on the patient’s horizon and through this appeared on the patient s horizon, and through this broadening of his or her outlook, the insoluble problem lost its urgency. It was not solved logically problem lost its urgency. It was not solved logically in its own terms, but faded when confronted with a new and stronger life urge.”

-- Carl Jung

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Oscillation drains energyOscillation drains energy

CentralizeC t

DecentralizeGeographyCustomer

OrganizationGrow

Acquire

Geography Organization

ContractOrganic Salesq

Diversify Stick to Knitting

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Structural Conflict Structural Conflict 14

Structural Conflict Structural Conflict leads to Oscillationleads to Oscillation

TENSION RESOLUTION

Hunger Eat

O i ht Di tOverweight Diet

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The Path of The Path of Least Least Least Least ResistanceResistance

© James G. ClawsonRobert Fritz1984, 19891984, 1989

Random HouseHouse

15

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Fritz’s Alternative:Fritz’s Alternative:16

Orient to the Orient to the Creative ProcessCreative ProcessD ib t l h 1. Describe accurately where you are(Collins’ “confront the brutal facts”)

2 Make a vision of what you want to create2. Make a vision of what you want to createwith your life/work. Make sure it’s something you want so bad you

WhatMake sure it s something you want so bad, you are magnetically attracted to it.

3. Formally choose the result you want.

result do you 3. Formally choose the result you want.

4. Move on (if you really want it, you will naturally ‘flow’ in that direction.)

ywant

to create?y )to create?

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Two Orientations to Two Orientations to

17

© James G. ClawsonTwo Orientations to Two Orientations to Life and BusinessLife and Business

PROBLEM SOLVING▫ Reactive

CREATION ORIENTED▫ Assertive

▫ Responsive▫ Outside-In▫ Oscillating

▫ Inside-Out▫ Forward Progress▫ Creative Completions

▫▫▫

▫ [▫ [▫ [

▫▫

▫ [▫ [

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Human Human 18

© James G. ClawsonHuman Human BehaviorBehavior HABITUAL?

1. Visible Behavior

2. Conscious Thought

3. VABEs (values assumptions beliefs and (values, assumptions, beliefs, and expectations)

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Habitual Points of ViewHabitual Points of View

19

Habitual Points of ViewHabitual Points of View

•Follower’s Point of View (FPV)•Follower s Point of View (FPV)•Bureaucrat’s Point of View (BPV)•Leadership Point of View (LPV)

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Th L d hi P i tTh L d hi P i t ff ViVi

20

The Leadership PointThe Leadership Point--ofof--ViewView

1 Do you SEE what needs to 1. Do you SEE what needs to be done?

2. Do you UNDERSTAND all th f t l ?the forces at play?

3. Do you have the courage to 3. Do you have the courage to ACT?

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The Importance of The Importance of 21

© James ClawsonThe Importance of The Importance of Organizational CultureOrganizational Culture

“Culture eats strategy for breakfast ”breakfast. Sign hanging in the Ford Motor Company’s Organizational Change War Room

“Culture isn’t just one aspect of the h ”game—it is the game.”

Louis V. Gerstner Jr., former CEO of IBM, Business Week, 2/12/07, p. 73)p )

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Problems at GMProblems at GM22

© James Clawson

“But in working for the largest company in the industry for so long, they (“guys like Wagoner—smart, sincere, dili d d E l S ”) b diligent—modern day Eagle Scouts”) became comfortable, insular, self-referential, and too wedded to the status quo—traits that persist even now, when GM is q p ,on the precipice. They prefer stability over conflict, continuity over disorder, and GM’s way over anybody else’s They believe that hard work will overcome else s. They believe that hard work will overcome adversity, and that tomorrow will be better than today—despite four decades of evidence to the contrary. In many ways the story of General Motors since the 1960’s many ways the story of General Motors since the 1960 s is a tale of accelerating irrelevance.”

Alex Taylor III, Fortune, 12/8/08, p. 94.

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You are You are alwaysalways teaching.teaching.23

© James Clawson

Every encounter between a superior and a subordinate involves learning of some kind for the subordinate. (It h ld i l l i f th i t b t th t i should involve learning for the superior, too, but that is

another matter.) When the boss gives an order, asks for a job to be done, reprimands, praises, conducts an appraisal interview, deals with a mistake, holds a staff meeting, works with his subordinates in solving a problem, gives a salary increase discusses a possible promotion or takes any other increase, discusses a possible promotion, or takes any other action with subordinates, he is teaching them something. The attitudes, the habits, the expectations of the subordinate

ill b ith i f d difi d t d will be either reinforced or modified to some degree as a result of every encounter with the boss. . .The day-by-dayexperience of the job is so much more powerful that it tends to overshadow what the individual may learn in other settings.

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24

Level Level ThreeThreeThree Three

Leadership Leadership pp4e4e

Jim Clawson

Darden Graduate School of Business

University of Virginia

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The Leadership MapThe Leadership Map25

EnvironmentLegal, Cultural,Financial, etc.

p pp p

SELF

RESULTS

Financials?Customers?TASKOTHERS Customers?

Core Capabilities?Learning?

Employees?ORGANIZATIONORGANIZATION

25

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The New ContextThe New Context

We are in the midst of a major managerialmajor managerial paradigm shift…

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27

Global Population GrowthGlobal Population Growth6.0

5 55 5

Bio & Energy Revolution

pp

5.55.5

5.0

4.54.5

4.0

World

PopulationIndustrial Revolution

InformationRevolution

3.53.5

3.0

2.52.5

in

Billions

Th

Revolution

2.0

1.51.5

1.0

0.5

ThePlague

500 400400 300 200200 100 A.D.A.D. 100 200200 300 400400 500 600600 700 800800 900 10001000 1100 12001200 1300 14001400 1500 160016001700 18001800 19001950

20002000

Source: US Census Bureau, Population Reference Bureau, adapted fromSource: US Census Bureau, Population Reference Bureau, adapted from Breathing Space, by Jeff Davidson

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Wh h l d hi

28

What are the leadership implications of those challenges?p f g

Wh t ki d f l d hi ill it t k t What kind of leadership will it take to understand, meet, and overcome those challenges?challenges?

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The world craves clarity The world craves clarity

29

The world craves clarity …The world craves clarity …

And most “strategic” conversations are And most strategic conversations are fuzzy, misleading, and confusing…

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ChartersChartersLEADERSHIP

Strategy

ChartersCharters

MissionVision

Values

Goals

Values

1. Mission Statement

2. Vision Statement

3 Values Statement

4. Strategy

5. Operating Goals and Milestones

6 Leadership3. Values Statement 6. Leadership

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Charter Framework31

Charter Framework

Element Statement

Mission

Vi iVision

Values

Strategy

GoalsGoals

Leadership

31

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e.g. Darden School Chartere.g. Darden School Charter32

Element Statement

Mission “To better society by preparing principled leaders in the world of practical affairs.”

Vision “to be an international leader in management education widely Vision g yrecognized in the business and academic communities…”

Values Eight Core Values: action-oriented graduates, student-centered learning, integrated and innovative curriculum, supportive and g, g , ppequitable learning climate, managerially relevant research, mutually strengthening partnerships.

Strategy Teaching teams, Recruiting, Faculty-led committees, Surveys, etc.

Goals Measured by Polls, Surveys, Course Ratings, Enrollments, etc.

Leadership Deans, Area coordinators, Section Faculty Leaders, Program Faculty Leaders

32

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What’s your personal charter?What’s your personal charter?

33

y py p

Element StatementWh t’ i i i lif ?What’s your mission in life?

Where do you want to be in 25-30 ?years?

Upon what values and beliefs do you base your behavior?base your behavior?What’s your strategy for getting to your vision?What are the interim milestones (goals) along the way?Wh ’ i t d fi th thi ?Who’s going to define these things?

33

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LEADING SELFLEADING SELFLEADING SELFLEADING SELF

Bob Johnson

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The dangerous The dangerous © James G. Clawson

36

“outside“outside--in” nature of corporate goals.in” nature of corporate goals.100%

Assertiveness OUTSIDE

50%

INSIDE

50%

FEAR OFINSIDE REJECTION

0%

36

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Are you Are you l dil dileading leading your ownyour ownyour own your own life or life or living living

t idt id i ?i ?outsideoutside‐‐in?in?

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Is leading self about managing Is leading self about managing 38

Is leading self about managing Is leading self about managing time?time?

38

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d h

39

Leadership is about managing energyabout managing energy, first in yourselffirst in yourself and then in others.

First sentence in L3L 4e page 3First sentence in L3L 4e, page 3

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Why people behave the way they do…Why people behave the way they do…

40

Transcender? Locus of ControlEXIN

MEMESGENESIN

ENERGY?Generation to Generation

Key Questions

1 When I’m cold

ENERGY?

Two key legacies

NewbornChoice Theory (Glasser)1. IKWRFY2. IHARTTYWRFY

1. When I m cold…

2. When I’m hungry…

3. When I’m wet…

4 When I’m alone and afraid

Two key legacies

3. IHARTPYIYDDWRFY4. When I m alone and afraid…

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Beware your BlindBeware your Blind Spots!Spots!© James G. Clawson

41

SEE NOT SEE

Beware your Blind Beware your Blind Spots!Spots!OTHERSOTHERS

SEE NOT SEE

SEEPUBLICPUBLIC PRIVATEPRIVATE

SELFSELFPUBLICPUBLIC PRIVATEPRIVATE

NOT

SELFSELFBLINDBLIND

NOT SEE SPOTSSPOTS

41

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Why people behave the way they do

42

© James G. Clawson

Why people behave the way they do…

Will you ever become anythingWill you ever become anything more than a vessel that transmits the genes and memes (VABEs) of the previous generation on to the next?

Will you become a transcender?

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Do you understand?43

© James G. ClawsonyWhy People Behave the Way They Do

L3:ValuesAssumptions EVENTSpBeliefsExpectations

EVENTS

L2: CONCLUSIONS

L1: BEHAVIORSAY & DOFEELINGS

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Development: Development: 44

© James G. Clawson

Life is like a Symphony . . .Life is like a Symphony . . .

M lti l A t• Multiple Aspects• Multiple Rhythms• Different Movements• Different Movements• Experienced all at once• Can be coordinated and beautiful or • Can be coordinated and beautiful or

disjointed and distressing

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© James G. Clawson

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© James G. Clawson

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47

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Aspects of LifeAspects of Life

48

© James G. Clawson

Aspects of LifeAspects of Life

•Organizational• Physical Organizational

•Political• Physical

• Intellectual•Familial

•Social• Spiritual

• Emotional•Marital

Emotional

• Professional•Sexual

•Parental• Financial

• MaterialMaterial

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Physical Rhythm49

© James G. Clawsony y

27!27!

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A Personal Developmental A Personal Developmental © James G. Clawson

PhysicalSocial

Balance Balance WheelWheel

Physical

IntellectualParental

Social

SpiritualMarital

EmotionalFamilial

ProfessionalPolitical

FinancialMaterial

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A Personal Developmental A Personal Developmental © James G. Clawson

Balance Balance WheelWheel

PhysicalSocial Physical

IntellectualParental

Social

SpiritualMarital

EmotionalFamilial

Professional

FinancialMaterial

Political

FinancialGoals

See also www.CareerNextStep.com

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How do all these How do all these © James G. Clawson

aspects aspects balance out?balance out?

PhysicalParental

Social

Intellectual

SpiritualMarital

Parental

p

EmotionalFamilialCore?

Professional

Material

Political

FinancialMaterial

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TIME USE PROFILETIME USE PROFILE © James G. Clawson

53

AspectAspect Time AllocatedTime AllocatedAspectAspect Time AllocatedTime Allocated

Physical

Social

IntellectualIntellectual

Marital …

Etc.

Total = 168 plus shadow timeTotal 168 plus shadow time

53

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MANAGING ENERGYMANAGING ENERGY

54

© James G. Clawson

MANAGING ENERGYMANAGING ENERGY

• What’s your dominant thought on the way • What s your dominant thought on the way into work in the morning on a typical day?

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What happens when one crosses the What happens when one crosses the

55

© James G. Clawsonppppdivide between choice and obligation?divide between choice and obligation?

Energy?Productivity?

Creativity?Creativity?Innovation

Engagement?

CHOICE OBLIGATION

Commitment?Buy-In?

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What’s the difference between What’s the difference between © James G. Clawson

“I t d l i lf t tl th ti I d id d

What s the difference between What s the difference between “work” and a “job?”“work” and a “job?”

“I stopped loving golf at exactly the time I decided to turn pro.”

- Tom Weiskopf Golf July 2004 p 133Tom Weiskopf , Golf, July 2004, p. 133

People pay me a lot of money to go away from my f il i h l id h b ll family, stay in cheap motels, ride on the bus all night, and eat rubber chicken. But when the curtain goes up and the light on the camera goes on THAT goes up and the light on the camera goes on, THAT I do for free.

- Grammy winning musician

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The difference between The difference between 57

© James G. Clawson

The difference between The difference between “work” and a Job“work” and a Job

JOB: what you have to do

???

WORK: what you choose choose to do with your life

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Going to a JobGoing to a Job

58

© James G. Clawson

Going to a JobGoing to a Job

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Going to WorkGoing to Work59

© James G. ClawsonGoing to WorkGoing to Work

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60

© James G. Clawson

What should Penguins do with Polar What should Penguins do with Polar W at s ould e gu s do w t ola W at s ould e gu s do w t ola Bears?Bears?

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Self Leadership is Managing Energy Self Leadership is Managing Energy

61

© James G. Clawson

Self Leadership is Managing Energy Self Leadership is Managing Energy

INFUSES DRAINSINFUSES•

DRAINS•

••

••

••

•••

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Y lif i f tl t t d

62

© James G. Clawson

Your life is perfectly structured and designed to produce the g presults you’re getting now.

Albert Einstein noted that the definition of insanity is expecting different results while you continuedifferent results while you continue doing the same thing.

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63

CAREER CAREER CONCEPTSCONCEPTSCAREER CAREER CONCEPTSCONCEPTS

© James G. ClawsonDeveloped by Mike Driver andand Ken Brousseau at USC

http://www decisiondynamics us/global/career model asp?sm=12http://www.decisiondynamics.us/global/career_model.asp?sm=12

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LinearLinear64

© James G. ClawsonLinearLinear

APower

and

A BStatus C

TimeMotivation:

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Steady State

65

© James G. Clawson

Steady State

Powerandand

Status

TimeMotivation::

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Spiral

66

© James G. Clawson

Spiral

Powerandand

Status

TimeTimeMotivation:

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Transitory

67

© James G. Clawson

TransitoryMINUSes

AlcoholDrugs

PLUSesClimbing

Powerand

DrugsGambling

SexEtc.

TravelKayaking

Etc.and

Status

Time

Motivation:

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Some Fundamental Some Fundamental © James G. Clawson

68

Some Fundamental Some Fundamental QuestionsQuestions

• What is your career concept?y p• What kind of “life theme” is

implied by your career concept?implied by your career concept?• What are the implications of your

ca ee concept fo the kind of career concept for the kind of work you should be seeking?

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Change begins with selfChange begins with self69

© James G. Clawson

Change begins with self…Change begins with self…WorldWorld

NationNation

St tState

Community

SELFSELF

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70

It's not the critic who counts It's not the man whoIt s not the critic who counts. It s not the man who points out where the grown man stumbles, or how the doer of deeds could have done them better. The credit belongs to the man who actually is in the arena, who strives violently, who errs and comes up short again and again, who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause who if he wins knows the triumph of highcause, who if he wins knows the triumph of high achievement, but who if he fails, fails while daring greatly, so his place will never be with those cold andgreatly, so his place will never be with those cold and timid souls who know neither victory nor defeat.

Theodore Roosevelt 26th President of the UnitedTheodore Roosevelt, 26th President of the United States

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71

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© James G. Clawson

Level Three LeadershipLevel Three Leadership

Jim Clawson

Darden Graduate School of Business

University of Virginia

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Ti C

73

© James G. Clawson

Time Cone

DEATH

FUTUREDEATH

TODAY

PASTPAST

BIRTH

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Looking ahead: Looking ahead: 74

© James G. Clawson

What organizations will you be called on to lead?What organizations will you be called on to lead?

FUTUREFUTURE

TODAY

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Looking back: Looking back:

75

© James G. Clawson

What are your core leadership principles?What are your core leadership principles?

FUTURETODAY

PASTPAST

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Covey’s Seven (+1) HabitsCovey’s Seven (+1) Habits

76

© James G. Clawson

Covey’s Seven (+1) HabitsCovey’s Seven (+1) Habits1. Be Proactive2. Begin with the End in Mind3. Put First Things First3. ut st gs st4. Think Win/Win5 Seek First to Understand5. Seek First to Understand6. Synergize7 Sharpen the Saw7. Sharpen the Saw8. Find Your Voice

Seven Habits of Highly Effective People, Stephen Covey, Simon and Schuster, 1989.

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Jack Welch’s Operating PrinciplesJack Welch’s Operating Principles

77

© James G. Clawson

Jack Welch’s Operating PrinciplesJack Welch’s Operating Principles

• Control Your Destiny or Someone Else WillControl Your Destiny or Someone Else Will• Face Reality as it is, not as it was or as you

wish it werewish it were• Be candid with everyone• Don’t manage lead• Don t manage, lead• Change before you have to

If you don’t have a competitive advantage • If you don t have a competitive advantage, don’t compete

Control Your Destiny or Someone Else Will, Noel Tichy and Stratford Sherman, HarperBusiness, 1993.

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Thomas Jefferson's Thomas Jefferson's 78

© James G. Clawson

Ten CommandmentsTen Commandments1. Never put off until tomorrow what you can do today.2. Never trouble another for what you can do for

yourself.3. Never spend your money before you have earned it.4. Never buy what you don't want because it is cheap.5. Pride costs more than hunger, thirst, and cold.6. We seldom repent of having eaten too little.p g7. Nothing is troublesome that we do willingly.8. How much pain the evils have cost us that never

happened.pp9. Take things always by the smooth handle.10. When angry, count 10 before you speak; if very

angry, count 100.g y,

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A E i

79

© James G. Clawson

An Exercise

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Levels of Human ActivityLevels of Human Activity80

© James G. ClawsonLevels of Human ActivityLevels of Human Activity

1. Visible Behavior

2. Conscious Thought

3 VABEs Chamberlain’s 3. VABEs L3 Approach

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Leadership Leadership h i d Ch i d C

81

© James G. Clawson

Technique and ConsequenceTechnique and Consequence

1.Level One Techniques: BUY-IN1.Level One Techniques:Pay, rewards, punishments, threats, coercion, intimidation

BUY IN1. Passion

2. Engagement2.Level Two Techniques:

logic, data, evidence, reason, statistics, charts, analysis

g g

3. Agreement

4. Compliance

3.Level Three Techniques: vision purpose

5. Apathy

6. Passive Resistance

A ti R i tTechniques: vision, purpose, values, stories, music, symbols, strategy, TPOV

7. Active Resistance

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In search of high performanceIn search of high performance

82

© James G. Clawson

In search of high performanceIn search of high performance

Subpar Extra-ordinary

Ordinary

Good Enoughy

Good Enough1’s

2’s 3’s 4’s5’s

How do you shift this distribution?How do you shift this distribution?

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T diti l L d hi T h iT diti l L d hi T h i

83

© James G. Clawson

Traditional Leadership TechniqueTraditional Leadership Technique

• Planning• Organizing• Motivating• Controllingg• Goal Setting• Performance ReviewsPerformance Reviews• Reward Systems and Incentives …

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M l F d ti f

84

Moral Foundation of Extraordinary Extraordinary Leadership

© James G. Clawson

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The Moral Foundation ofThe Moral Foundation of

85

© James G. Clawson

The Moral Foundation of The Moral Foundation of Extraordinary PerformanceExtraordinary Performance

Subpar Extra-ordinary

Ordinary

Good Enoughy

Good Enough1’s

2’s 3’s 4’s5’s

0 100Truth TellingPromise Keeping0 100 Olympicp g

FairnessRespect for the Individual

0

0

100

100

OlympicGold

MedalRespect for the Individual

Rich Teerlink, CEO Harley Davidson

0 100

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The HBS MBA OathThe HBS MBA Oath

86

© James G. Clawson

The HBS MBA OathThe HBS MBA OathAs a manager, my purpose is to serve the greater good by bringing people and resources together to create value that

no single individual can create alone. Therefore I will seek a course that enhances the value my enterprise can create for society g y p y

over the long term. I recognize my decisions can have far‐reaching consequences that affect the well‐being of individuals inside and

outside my enterprise, today and in the future. As I reconcile the interests of different constituencies, I will face choices that are not easy

for me and others.

Therefore I promise:

• I will act with utmost integrity and pursue my work in an ethical manner.

• I will safeguard the interests of my shareholders, co‐workers, customers and the society in which we operate.

• I will manage my enterprise in good faith, guarding against decisions and behavior that advance my own narrow ambitions but harm

the enterprise and the societies it serves.

• I will understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my

enterprise.

• I will take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly.

• I will develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the

well‐being of society.

• I will strive to create sustainable economic, social, and environmental prosperity worldwide.

• I will be accountable to my peers and they will be accountable to me for living by this oath.

• This oath I make freely, and upon my honor.

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Six Steps Six Steps 87

© James G. Clawsonppto Effective Leadershipto Effective Leadership

1. Clarifying your center

2. Clarifying what's possibley g p

3. Clarifying what others can contribute

4 S ti th th t ib t4. Supporting others so they can contribute

5. Being relentless

6. Measuring and celebrating progress

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When you attempt to influenceWhen you attempt to influence

88

© James G. Clawson

When you attempt to influence When you attempt to influence others, what level do you target?others, what level do you target?

Level 1

Level 2

Level 3

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89

The Motivation Problem: “Buy In”The Motivation Problem: “Buy In”© James G. Clawson

•Passion

The Motivation Problem: Buy InThe Motivation Problem: Buy In

Passion•Engagement•Agreement•Compliancep•Apathy•Passive Resistance•Passive Resistance•Active Resistance

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90

Leadership Level TechniquesLeadership Level Techniques© James G. Clawson

Leadership Level TechniquesLeadership Level Techniques

Level One Level Two Level Three

ForceI ti id ti

LogicD t

VisioningS lf Di lIntimidation

CoercionThreats

DataEvidenceAnalysis

Self DisclosureStory Telling

MusicRewards

PunishmentsAwards

DebateArgumentCitations

SymbolsTestimony

Higher PurposeAwardsBonuses

Title

CitationsCharts

Higher Purpose

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Interaction among Interaction among 91

© James G. Clawson

Levels of Human BehaviorLevels of Human Behavior

Level One: VISIBLE BEHAVIOR

Level Two: CONSCIOUS THOUGHTLevel Two: CONSCIOUS THOUGHT

Level Three: semiconscious VALUES, ASSUMPTIONS, BELIEFS and EXPECTATIONS (VABEs)BELIEFS, and EXPECTATIONS (VABEs)

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92

Consequences of Level ImpactConsequences of Level Impact© James G. Clawson

• Passion

Consequences of Level ImpactConsequences of Level Impact

L l O Passion• Engagement• Agreement

Level One

ForceIntimidation Agreement

• Compliance• Apathy

IntimidationCoercionThreatsR d Apathy

• Passive Resistance• Active Resistance

RewardsPunishments

Awards Active ResistanceBonuses

Title

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Consequences of Level ImpactConsequences of Level Impact© James G. Clawson

• PassionE

Consequences of Level ImpactConsequences of Level ImpactLevel Two

L i • Engagement• Agreement

C li

LogicData

Evidence• Compliance• Apathy

P i R i

AnalysisDebate

Argument • Passive Resistance• Active Resistance

ArgumentCitations

Charts

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94

Consequences of Level ImpactConsequences of Level Impact © James G. Clawson

• Passion• Engagement

Consequences of evel ImpactConsequences of evel Impact

Level Three

Vi i i • Engagement• Agreement• Compliance

VisioningSelf DisclosureStory Telling Compliance

• Apathy• Passive Resistance

y gMusic

SymbolsTestimony • Active ResistanceTestimony

Higher Purpose

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95

What’sWhat’s youryour mix?mix?© James G. Clawson

What s What s youryour mix?mix?

Percentageg

Level One

Level Two

Level Three

What kind of Buy‐In are you getting?

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96

© James G. Clawson

PowerPoweris the s eability to getothers to dowhat you wantth t dthem to do.

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Sources of PowerSources of Power

97

© James G. Clawson

Sources of PowerSources of Power

LegitimateCoerciveRewardExpertiseExpertiseReferent/Social

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Leadership© James G. Clawson

Leadership 1. The ability to influence others, and

2 Th illi t i fl th2. The willingness to influence others

3. So that they respond voluntarily.y p y

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99

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Lif ’ St E iLif ’ St E i100

Life’s Story ExerciseLife’s Story Exercise

© James G. Clawson

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Jimmy Buffett’s Life StoryJimmy Buffett’s Life Story © James G. Clawson

101

y yy y

101

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What themes or patterns do you see in © James G. Clawson

102

What themes or patterns do you see in Jimmy Buffett’s life?

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I broke out of the grip of Catholicism and made it through adolescence without killing myself in a car.

103

I flunked out of college. I learned to play the guitar, lived on the beach, lived in the French Quarter, finally got laid, and didn't go to Vietnam. I got back into school, started a band, got a job on Bourbon Street, graduated from college, flunked my draft physical, broke up my band, and went out on the road solo. I signed a record deal, got married, moved to Nashville, had my guitars stolen, bought a Mercedes, worked at Billboard magazine, put out my first album, went broke, met Jerry Jeffbought a Mercedes, worked at Billboard magazine, put out my first album, went broke, met Jerry Jeff Walker, wrecked the Mercedes, got divorced, and moved to Key West. I sang and worked on a fishing boat, went totally crazy, did a lot of dope, met the right girl, made another record, had a hit, bought a boat, and sailed away to the Caribbean. I started another band, worked the road, had my second and last hit, bought a house in Aspen, t t d di i N E l d t i d b k l th ti i h dstarted spending summers in New England, got married, broke my leg three times in one year, had a

baby girl, made more records, bought a bigger boat, and sailed away to St. Barts. I got separated from the right girl, sold the boat, sold the house in Aspen, moved back to Key West, worked the road, and made more records. I rented an apartment in Paris, went to Brazil for Carnival, learned to fly, went into therapy, quit doing dope, bought my first seaplane, flew all over the y, py, q g p , g y p ,Caribbean, almost got a second divorce, moved to Malibu for more therapy, and got back with the right girl.I worked the road, moved back to Nashville, took off in an F-14 from an aircraft carrier, bought a summer home on Long Island, had another baby girl. I found the perfect seaplane and moved back to Florida Cameron Marley joined me in the house of women I built a home on Long Island crashedto Florida. Cameron Marley joined me in the house of women. I built a home on Long Island, crashed the perfect seaplane in Nantucket, lived through it thanks to Navy training, tried to slow down a little, woke up one morning and I was looking at fifty, trying to figure out what comes next.

Loves Music BreaksLoves Music BreaksThings

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Was he a success? Was he a success? © James G. Clawson

104

Was he a success? Was he a success? What does it mean to be successful?

• Money?Fame?• Fame?

• Health?Relationships?• Relationships?

• Impact on Society?How about:• How about:

After you’re done, you want to do it againagain.

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Does Does experience lead experience lead to wisdom?to wisdom?

105

© James G. Clawson

Does Does experience lead experience lead to wisdom?to wisdom?“Most people do not accumulate a body of p p yexperience. Most people go through life undergoing a series of happenings which pass through their systems undigested. Happenings become experiences when they are digested, when they are reflected on related to generalwhen they are reflected on, related to general patterns, and synthesized.”

Saul Alinsky, Rules for Radicals, quoted by Henry Mintzberg in “The Five Minds of a Manager” HBR 11/03

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Another story … Another story … © James G. Clawson

106

yy

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© James G. Clawson

107

Lessons from Howard Schulz?

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Digesting Life’s Digesting Life’s © James G. Clawson

108

g gg gEmotional Ups Emotional Ups and Downsand Downs

Event +5/-5

Parents’ DivorceParents Divorce-5

Graduating withGraduating with Honors +5

W ki t thWorking at the bank -3

108

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Life’s Story Analysis Part Two:

109

© James G. Clawson

Life s Story Analysis Part Two: Chart of Emotions

+5

00

-5

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Jim’s Life’s Story 110

© James G. ClawsonJim s Life s Story Chart of Emotions

+5

00

-5

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Patterns in Life’s StoriesPatterns in Life’s Stories © James G. Clawson

111

Patterns in Life s StoriesPatterns in Life s Stories

What insights or inferences could you get f h ffrom each of

these key events?

111

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Digesting Life’s Digesting Life’s Emotional Emotional © James G. Clawson

112

g gg gUps Ups and Downsand Downs

Event +5/-5 Lesson Taken AwayParents’Parents Divorce -5

Graduating 5

gwith Honors +5

Working at the 3bank -3

112

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Wh t l f thi ?Wh t l f thi ?© James G. Clawson

113

What can we learn from this?What can we learn from this?

I f b i l lif• Inferences about your emotional life• Inferences about your emotional trends• Self Management skills• Insights about semi‐conscious VABEsInsights about semi conscious VABEs• Connections with your Reactions Journal?

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Lif ’ S A l i P ThLif ’ S A l i P Th© James G. Clawson

114

Life’s Story Analysis Part Three:Life’s Story Analysis Part Three:Lessons Learned, Potential ThemesLessons Learned, Potential Themes

Event +5/-5 Lesson Taken AwayParents’ Divorce -5 Marriage is a bad thing

Graduating with Honors +5

You can excel at things you like, but can you get a job?

Working at the The daily grind and sitting at a

Insights and

Potential LifWorking at the

bank -3The daily grind and sitting at a desk all day working other people’s stuff is killing me.

Life Themes

114

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Leadership is about managing energy, managing energy,

first in yourself first in yourself, and then in those around you.

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And your Life’s Story is the source of your Leadership Energy.Leadership Energy.

A illi iAre you willing to use it to influence othersto influence others at Level Three?

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Barriers to Level Three C i tiCommunicationDistance in Leadership Communication

Professional PrivatePersonal

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Two Key Translations in Self AssessmentTwo Key Translations in Self Assessment118

© James G. ClawsonyyMaking Sense of our ExperiencesMaking Sense of our ExperiencesFILTERS

T1

L3: Experience

&F li

L1: Behavior:

L2: ConsciousThoughtsFeelings Say &

Do

Thoughts

T2T2

FILTERS

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Your Story createdyyour Level Three VABEs …

And your VABE’s And your VABE’s determine determine your leadership styleyour leadership styleyour leadership styleyour leadership style

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So, are you willing to tell/share/use your Story?tell/share/use your Story?

Are there four volunteers willing to do so?

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What is your reaction to listening to y gthese stories?What can we learn from this?What can we learn from this?

Cl it f M• Clarity of Message• Authenticity• MemorabilityMemorability• Respect to audience• Common Experiencep• Bonds that develop between us• Power of the influence

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Common, Emotional Connections are most powerful…

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The Importance of BeingThe Importance of Beingp gp gA Level Three LeaderA Level Three Leader

1. Visible Behavior 2 C i Th ht2. Conscious Thought3. VABEs (shoulds, oughts)3. VABEs (shoulds, oughts)

Level Three Leadership is more powerful and long-lasting.

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WORLD CLASS PERFORMANCEWORLD CLASS PERFORMANCE

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WORLD CLASS PERFORMANCEWORLD CLASS PERFORMANCERisky RecreationsRisky RecreationsRisky Recreations Risky Recreations

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FLOWFLOW

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FLOWFLOWTime warps (slow or fast)Time warps (slow or fast)Lose sense of selfIntense focusPerform at highest levelSeems effortless (flow)Internally satisfyingRegain larger sense of self

Adapted from FLOW by Mihalyi Csikzentmihalyi,

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Flow Flow 127

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Flow …Flow …Can be designed into life Is RepeatableIs RepeatableCan be transported

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NEWBURG’S CAREER SAMPLES

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NEWBURG S CAREER SAMPLES

World Class AthletesWorld Class AthletesTouring MusiciansHeart SurgeonsExtraordinary ExecutivesExtraordinary ExecutivesWarriors

550 World Class Performers

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The Resonance ModelThe Resonance Model

ddream

revisit your preparationdream

obstacles

Doug Newburg, PhD

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A fundamental question …q

Does how you feel affect Does how you feel affect your performance?y p

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i l f

131

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Focusing on Feel to PerformDave ScottDave Scott

49, Six-time Ironman Hawaii Champion

“D i I “During a race, I never wear a wristwatch, and my bike doesn’t have a speedometer. They’re distractions.

All I work on is finding a rhythm that feels strong and sticking to it ” feels strong and sticking to it.

Outside, 9/03, p. 122

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Jim Collins’ Jim Collins’ answer: answer:

The The PASSION

Hedgehog Hedgehog Concept Concept

BHAGs

Concept Concept and and

PassionPassion

Good to Great, by Jim Collins, Harper132

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Does how you Does how you feelfeel © James G. Clawson

133

yy ffaffect your performance?affect your performance?

• How many times have you been asked by supervision at work how you want to feel?

• How do you WANT to feel?• The pervasive management assumption:

PWD WTHTD ROHTF

• This is a formula for mediocrity.

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Examples of Examples of FeelFeel

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Examples of Examples of FeelFeel ……Easy speed (Jeff Rouse)y pPlaying to win at the highest level (Dawn Staley)O f hOut of my chestBeing at one with my surroundingssurroundingsPeaceful, satisfied, aliveBuoyant, connected y ,masteryLight, unhurried, and

dengaged.

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Be careful of the Be careful of the

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Be careful of the Be careful of the “achievement orientation”“achievement orientation”

O h d f hOther dangers of the achievement orientation:

1. Winning at any cost2. Making the numbers is #1

Energy

2. Making the numbers is #13. Emerging hollowness4. Character and ethical implications

Energy

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The Resonance ModelThe Resonance Model © James G. ClawsonThe Resonance ModelThe Resonance ModelPreparationPreparation

ddream

preparationp p

Preparation, practice, rehearsal, WORK

Doug Newburg, PhD

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The Relationship between Dream and The Relationship between Dream and 137

ppPreparation: Vijay Singh, pro golferPreparation: Vijay Singh, pro golfer

“Confidence doesn’t come from winning. Winning comes from confidence. And that confidence comes from hard work.”

- Vijay Singh, Golf Digest, “From the Gallery,” June 2005. Singh won nine tournaments in 2004, was ranked #1 in the world, and is known for 4, ,his extraordinary practice regimen, hours and hours a day.

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STAMINA: the preparation “problem”STAMINA: the preparation “problem”© James G. Clawson

STAMINA: the preparation problemSTAMINA: the preparation problem

dream

ipreparation

Doug Newburg, PhD

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Typical Reaction to Obstacles:Typical Reaction to Obstacles: © James G. Clawson

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ypypGetting stuck in the “Duty” CycleGetting stuck in the “Duty” Cycle

dreamdream

preparation

sobstaclesss

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We all start out knowing magic. We are born with whirlwinds, forest fires and comets inside of us. We are all born able to sing to birds and read the clouds, and see our destiny in grains of sand.

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But then we get the magic educated right out of our souls. We get it churched out, spanked out, washed out, and combed out. We get put on the straight and narrow and told to be responsible. Told to act our age. Told to grow up, for God’s sake. And you know why we were told that? Because the people doing the telling were afraid of our youth, and because the magic we knew made them ashamed and sad about what they had allowed to wither in themselves.

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After you go so far away from it though you© James G. Clawson

After you go so far away from it though, you can’t really get it back, just seconds of knowing and remembering When people getknowing and remembering. When people get weepy at movies, it’s because in that dark theater the golden pool of magic is touched justtheater the golden pool of magic is touched just briefly. Then they come out into the hard sun of logic and reason again and it dries up andof logic and reason again and it dries up, and they’re left feeling a little heavy, and they don’t know whydon t know why.

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The truth of life is that each year we get a little© James G. Clawson

The truth of life is that each year we get a little further from the essence that is born with us. We get shouldered burdens some of them goodget shouldered burdens, some of them good, some of them not so good. Things happen to us. Life itself does its best to take that memory ofLife itself does its best to take that memory of magic away from us. You don’t know it’s happening until one day you feel like you’ve losthappening until one day you feel like you ve lost something… and you’re not sure what it is. It’s like smiling at a pretty girl and she calls youlike smiling at a pretty girl, and she calls you “sir.” It just happens.

From “Boy’s Life,” Robert MacCammon

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The Resonance ModelThe Resonance Model © James G. Clawson

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Breaking through the SOS BarrierBreaking through the SOS Barrier

dream

re isit re isit

dream

revisit revisit your your dd

preparationdreamdream

obstacles

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Revisiting the DreamRevisiting the Dreami i h i lReconnecting with your emotional

experiencingReconnecting ith “ h ?”Reconnecting with “why?Balancing experience with resultsGetting OUT of the “duty cycle”Getting OUT of the duty cycleParadoxically improves results

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One surgeon …One surgeon …146

© James G. ClawsonOne surgeon …One surgeon …

Asks patients to tell “why they want to live longer”Asks for a photo after surgery

hi i i h h i dThis reconnects patients with their dreamsReconnects surgeon with his dream: to prevent deaths like his grandfather’sdeaths like his grandfather sPersonal Management Process: he reconnects with his dream through patients’ photoswith his dream through patients photos

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How do you approach your work?How do you approach your work?

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How do you approach your work?How do you approach your work?

dreamdream

revisit your preparationpreparationyour dream

preparationpreparation

obligationobligation

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“f l” d “ l” h“f l” d “ l” h

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“feel” and “goal” are not the same…“feel” and “goal” are not the same……we still had a long way to go. Like ants getting over an g y g g genormous obstacle we climbed up without appearing to make any progress. The slope was very steep. . . The air was luminous and the light was tinged with the most delicatewas luminous, and the light was tinged with the most delicate blue. On the other side of the couloir, ridges of bare ice refracted the light like prisms and sparkled with rainbow

fhues. The weather was still set fine--not a single cloud--and the air was dry. I felt in splendid form and as if, somehow, I had found a perfect balance within myself--was this, I p y ,wondered, the essence of happiness.

Maurice Herzog, Annapurna, p. 166

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ResonanceResonance152

© James G. ClawsonResonanceResonance

I think that what we’re seeking is an experience of being alive, so that our life experiences on the purely physicallife experiences on the purely physical plane will have resonance with our innermost being and reality so thatinnermost being and reality, so that we actually feel the rapture of being

lialive.Joseph Campbell, The Power of Myth, 1988Joseph Campbell, The Power of Myth, 1988

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K P i t K P i t

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Key Points …Key Points …

Pay attention to your internal Life’s Dream as well as your external Life’s Dream: HOW DO YOU WANT TO FEEL EVERY DAY?FEEL EVERY DAY?Pay attention to your experience along with your achieving.achieving.If you’re not resonating, will you be performing at a world‐class level?It’s your life, what are you willing to work for?Ignore Task AND Process at the risk of your enjoyment AND your performance

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Five Key QuestionsFive Key Questions154

© James G. ClawsonFive Key QuestionsFive Key Questions

5. What

1. How do I wantto feel today?

5. What are you

willing to work for?to feel today?

2 What does it take4 How can I 2. What does it take to get that feeling?

4. How can Iget it back? RESONANCE

3. What keeps me from that feeling?

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What is your What is your

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© James G. ClawsonyyInternal Life’s Dream?Internal Life’s Dream?

• How do you want to feel today?• What does it take to get that?• What does it take to get that?• What keeps you from it?

H i b k?• How can you get it back?

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PURPOSE OF LIFEPURPOSE OF LIFE

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PURPOSE OF LIFEPURPOSE OF LIFE

Fi d Y RFind Your ResonanceInvest in Your ResonanceEnjoy Your ResonanceHelp Others Find Their ResonanceHelp Others Find Their Resonance

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Making a DifferenceMaking a Difference

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LEADERSHIP LEADERSHIP 159

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POINT OF VIEW (LPV)POINT OF VIEW (LPV)

1. Do you See what needs to be done2 Do you Understand the situation 2. Do you Understand the situation

thoroughly3 Do ou ha e the Courage to Initiate 3. Do you have the Courage to Initiate

action to make it better

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Some Lessons from the SeminarSome Lessons from the Seminar

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Some Lessons from the SeminarSome Lessons from the Seminar• Develop a Leadership Point of View

d d f l h b b• Transcend your dysfunctional habits, beware your blind spots.L t L d t L l Th• Learn to Lead at Level Three

• Create your charters (personal, professional)• Manage how you want to feel to increase your • Manage how you want to feel to increase your

performance, and of those around you.• Lead yourself and manage your energyLead yourself and manage your energy• Remember Joshua Chamberlain’s example

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Leadership is about Leadership is about ppmanaging energy, managing energy,

firstfirst in yourself andin yourself andfirst first in yourself and in yourself and then in those around then in those around you. you.

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AN INVITATION / CHALLENGEAN INVITATION / CHALLENGE

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