LEVEL THREE LEADERSHIP
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1 Fifth Edition LEVEL THREE LEADERSHIP GETTING BELOW THE SURFACE James G. Clawson The Darden Graduate School of Business Administration University of Virginia Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
2 CONTENTS Preface xix Section I Section I Introduction 1 Chapter 1 THE LEADERSHIP POINT OF VIEW 3 Elements of the Leadership Point of View 5 Seeing What Needs to be Done 5 Understanding All the Underlying Forces at Play 6 Having the Courage to Initiate Action to Make Things Better 7 Conclusions 9 Chapter 2 THE DIAMOND MODEL OF LEADERSHIP IN ORGANIZATIONS 11 Leading Strategic Change 12 Key Elements of Leadership 13 Leader: The Individual 14 Task: What Should We Do? 14 Others: Working Together with Followers 15 Organization: Designing the Right Context 15 A Diamond in the Rough 16 Environment: The Context 16 Results: Outcomes of Leadership 16 Interelement Relationships are Important 17 How the Diamond Model Relates to Other Models of Leadership 18 Basic Definitions 19 Target Levels of Leadership 22 Conclusions 23 Chapter 3 LEVELS OF LEADERSHIP 25 Body, Head, and Heart 27 Types of VABEs 29 Connecting the Three Levels to Scholarly Views 30 Learning Level Three Leadership 31 Techniques for All Three Levels 31 Organizational Implications 31 Conclusions 33
3 C Contents Section II Strategic Thinking 35 Chapter 4 THE CHANGING CONTEXT OF LEADERSHIP 37 Global Business Issues 38 The Beginning of Human Economic Activity 39 Hunter/Gatherer 39 Aristocratic Society 40 The Industrial Revolution and Bureaucratic Society 41 The Present Paradigm Shift 44 The Context of Modern Infocracies 50 Conclusions 52 Chapter 5 STRATEGIC FRAMES 54 Definitions 55 Frames for Strategic Thinking 56 Fit Models 56 Porter's Five Forces 58 Value Chain 58 Core Capabilities 60 Growth 60 Intent Models 61 The BCG Model 62 The Ecological Model 63 Strategy as Revolution 63 / The Experience Economy 64 The Innovator's Dilemma 65 Good to Great Model 66 Strategy Maps 67 Developing Your Strategic Thinking 70 Scenario Building 70 Broad Reading 71 Essential Elements of Strategic Thinking 71 Conclusions 72 Chapter 6 ETHICAL DIMENSIONS OF LEADERSHIP 75 Six Dimensions of Leadership Morality 76 Morality and Leadership 78 The Moral Foundation of Level Three Leadership 79 Respect for the I nd ivid ua I 82 The Normal Distribution of Employees' Value Added 82
4 Contents xi Universality of the Moral Foundation of Level Three Leadership 85 Legal Constraints 88 Conclusions 89 Chapter 7 INNOVATION AND LEVEL THREE LEADERSHIP 91 Techniques for Enhancing Your Creative Thinking 94 Observe Mindfully 94 Consider the Opposite 94 Avoid Deadline Stress 94 Calm Your Mind 95 Always Search for a Better Way 95 Consider the Customer's Experience 95 Stimulate Your Curiosity 96 Use Mind Mapping 96 Heighten Your Senses 96 Fight Killer Phrases 96 Allow Fuzziness 97 Look for Unexpected Connections 97 Look for What's Fun 97 The Four I's 98 Innovate Like Edison 98 Conclusions 99 Chapter 8 PERSONAL, WORKGROUP, AND ORGANIZATIONAL CHARTERS 101 Charters 102 Mission 103 "To Make Money," You Idiot: Causal Mapping 104 Vision 108 Values 110 Walking the Values Talk 110 Strategy 111 Section III Self 117 Operating Goals 112 Conclusions 113 Chapter 9 SELF-LEADERSHIP 119 The Number One Question in Life 121 Every Organization is Perfectly Designed to Produce the Results it's Producing 122
5 xii Contents What To Do? 123 Stress 124 Conclusions 124 Chapter 10 A LEADER'S GUIDE TO WHY PEOPLE BEHAVE THE WAY THEY DO 126 Two Legacies 127 The Brain 128 Your Memetic Legacy 129 Reflection 129 Human Beginnings 130 Solidifying the Tendencies 132 Recognizing the Similarities and Differences 133 Motivation 134 The Freedom of Choice 135 Chapter 11 THE REB MODEL 139 Events 140 Perceptions and Observations 141 VABEs 141 Jumping to Conclusions Carefully 143 Internal Conclusions 144 Emotions and Feelings 145 Visible Behavior 146 An Example 147 Meaning Chains 148 The Reb Model and Leading Change 148 The Self-Concept 149 Defense Mechanisms 150 Implications For Leaders 151 Conclusions 152 Chapter 12 LEADERSHIP AND INTELLIGENCE 154 Not One Intelligence, But Many: Gardner's Research 155 Intelligence Quotient 156 Emotional Quotient 157 Recognizing Your Own Emotions 159 Managing Your Emotions,159 Paying Attention/Concentrating 160
6 Contents xiii Social Quotient 161 Recognizing the Emotions of Others 161 Listening 161 Empathizing and Caring 162 Helping Others Manage Their Emotions 162 Change Quotient 163 Recognizing the Need to Change 164 Understanding and Mastering the Change Process 164 Emotional Comfort with Change 164 Conclusions 165 / Chapter 13 RESONANCE, LEADERSHIP, AND THE PURPOSE OF LIFE 167 Dreams 169 Internal Dreams 170 Flow And Resonance 171 Transporting Flow 172 Re-creating Flow 173 The Universal Search for Resonance 173 Preparation 174 The Energy Cycle 175 The Search for Ideas 176 Managing Your Energy 177 Setbacks, Obstacles, and Alternate Successes 179 The Paradoxical Obstacle of Success 180 Revisiting the Dream 180 Conclusions 183 Chapter 14 THE GLOBAL BUSINESS LEADER 186 Cultures are Collections of VABEs 187 The Single Most Destructive Vabe 188 Characteristics of Effective Global Leaders 189 Overseas Experience 189 Deep Self-Awareness 189 Culturally Diverse 190 Humility 190 Lifelong Learning and Curiosity 190 Honesty 191 Globally Strategic 191
7 xiv Contents Patiently Impatient 191 Well Spoken 192 Good Negotiators 192 Human 192 Presence 193 Conclusions 193 Section IV Leading Others 195 Chapter 15 POWER AND LEADERSHIP: LEADING OTHERS 197 Sources of Influence and Levels of Leadership 199 Buy-In 200 The Currency of Reciprocity 202 The Role of Trust and Respect 205 General Approach to Influence 206 Purpose 206 Level Three Influence 206 Conclusions 207 Chapter 16 THE HISTORICAL STRENGTH AND MODERN APPEAL OF LEVEL ONE LEADERSHIP 210 Level One Leadership Assumes Consistency Across Individuals 212 Level One Leadership Techniques 213 The De-Energizing Impact of Level One Leadership 214 Conclusions 216 Chapter 17 THE CHALLENGES OF LEVEL TWO LEADERSHIP 218 The Human Brain 219 Formulae and Deductive Reasoning 220 Decision Making 222 Level Two Tools and Techniques 223 The Problem with Level Two Leadership 224 Conclusions 225 Chapter 18 THE FOCUS AND IMPACT OF LEVEL THREE LEADERSHIP 227 Level Three Techniques 229 Techniques for Showing Respect 229 Techniques for Influencing Vabes 230
8 Contents xv The Dark Side Potential of Level Three Leadership and Engagement 232 Organizational Implications 233 Applying Level Three Leadership at Both the Individual and Organizational Levels 234 Conclusions 235 Chapter 19 SIX STEPS TO EFFECTIVE LEADERSHIP 237 Clarifying Your Center 240 Clarifying Your Center 241 Developing Character: Ends Versus Means 242 Various Forms of Meditation 243 Clarifying What Is Possible 243 Clarifying Mental Images of What Can Be 243 Clarifying What Others Can Contribute 245 Basic Assumptions About Others 245 Identifying the Critical Skills 246 Supporting Others so They Can Contribute 247 Information Age Organizational Structures 248 Empowering Systems Design 249 Being Relentless 250 Life as a Motorboat or a Wood Chip 250 Developing Commitment 251 Measuring and Celebrating Progress 251 Focusing on the Right Measures 252 Focusing on the Glass Half Full 252 Conclusions 253 Chapfter 20 THE LANGUAGE OF LEADERSHIP 255 Clarity 256 Stimulating and Memorable 257 Congruent Authenticity 258 Respectful 259 Invitations 259 Rules of the Interpersonal "Dance" 259 Listening 263 Conclusions 263
9 xvi Contents Chapter 21 LEADING TEAMS 265 What Makes a Team? 266 Team Life Cycles 267 Forming: Initiation and Orientation 267 Norming: Exploration of How We'll Do the Task 267 Performing: Stabilization 268 Re-Forming: Reassessment 269 Team Roles 270 Inspired Vision that Creates A Powerful Sense of Mission 273 Getting the Right People 273 Distributed Leadership 274 Extraordinary Coordination 275 Creative Support 275 Moral Foundation for Respect 276 The Right Roles for the Right People 276 Participation 276 The Right Measures 277 How Would-Be Teams Go Awry 278 Virtual Teams 279 Conclusions 281 Section V Leaders as Designers 283 Chapter 22 LEADING ORGANIZATIONAL DESIGN 285 A General Model of Organizational Design and its Impact on Results 286 Background Factors 286 Leadership Philosophy 287 Organizational Design Decisions 288 Organizational Culture 295 Organizational Results 297 Organizational Glue 298 Conclusions 299 Chapter 23 HUMAN RESOURCE MANAGEMENT SYSTEMS 301 Selection and Hiring 302, Work Design and Performance 303 Appraisal 305
10 Contents xvii 7 Rewards 306 Learning Systems 306 Pervasive Systems 308 Conclusions 308 Chapter 24 LEADING CHANGE 310 A General Model of Change 311 The Role of Outside Help in Managing Change 314 Leading the Change Process 315 Clarifying Disconfirming Data 315 Building a Change Team 316 Designing and Leading Change Experiments 317 Relentlessly Reinforcing Results with the New Vision 317 Classic and Current Change Models 317 Roles in The Change Process 318 Responses To Change 319 Dying "Little Deaths" 319 The Many Faces of Denial 320 Anger and Bargaining 320 Transition Through Despair and Grieving 321 Hope and the Change Process 322 Levels in Change John Kotter's Model of Change 323 The Four P's 324 / The Mit Model 324 Prochaska's Model for Positive Change 325 Fighting Your Inherent Fears of Changing 326 Conclusions 326 Section VI Conclusion 329 Chapter 25 CONCLUSION 331 Section VII Workbook and Exercises 339 Chapter 26 LEVEL THREE LEADERSHIP WORKBOOK 341, The Diamond Model of Leadership 342 The Leadership Point of View 342 Outside-ln Versus Inside-Out: Managing The Fear of Rejection 343
11 xviii Contents Appendix 402 Bibliography 420 Index 422 Leadership Levels Assessment 344 Theory 344 Scoring Your Responses 345 Interpreting Your Scores 345 Strategic Challenges 346 Leadership Implications of My Strategic Challenges 347 My Leadership Future 348 Charter for My Organization 349 Charter for My Work Group 350 My Personal Charter 351 Survey of Managerial Style 352 My Personal Leadership Development Goals (Keep, Lose, Add) 362 Leadership Intelligence Self-Assessment 363 Managing Your Energy 364 Life's Dream Exercise 367 Balancing Your Life 371 Leadership Language Exercise 378 Systems and Processes in My Organization that Need Redesigning 398 My Personal Model of Change 399 What Do I Want to Do Next? 400 Your Central Point 401
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