Return on Character. Fred Kiel, PhD KRW International. May 2016

Transcription

1 Return on Character Fred Kiel, PhD KRW International May 2016

2 Character: How much does it really matter? 2

3 The Research Journey

4

5 Universal Moral Principles H E A D Integrity Telling the truth Acting consistently with principles, values, and beliefs (walking the talk) Standing up for what is right Keeping promises Responsibility Taking responsibility for personal choices Admitting mistakes and failures Embracing responsibility for serving others: leave the world a better place H E A R T Forgiveness Letting go of one s mistakes Letting go of others mistakes Focusing on what s right versus what s wrong Compassion Empathizing with others Asking for help Empowering others Actively caring for others Commitment to others development

6 7-Year Return on Character Research Study enrolled organizations yielding nearly 1,000,000 data points and growing. Duke Fuqua School of Management Accounting Department independently analyzed and verified results and cross-correlated with their own CEO Integrity Report. Harvard Business Review Press cites ROC as the first and only data of its kind.

7 Research Demographics Industrial Sectors Sector Number Percent Computer/Technology 7 8% Entertainment/Media 7 8% Financial Services 14 17% Food and Beverage 7 8% Government Agency 2 3% Healthcare 7 8% Manufacturing 5 6% Professional Services 11 13% Retail 12 14% Social Services 2 3% Transportation 2 3% Other 8 9%

8 Character Defined: Your intentions Your behavior

9 Behavioral Indicators of: Integrity Responsibility Forgiveness Compassion

10 Virtuoso and Self-Focused Leaders Strong VIRTUOSO SELF- FOCUSED Weak CEO Character Scores Ranked Lowest to Highest

11 Character and Return on Assets Strong 9.35% VIRTUOSO 1.93% SELF- FOCUSED 4.83% Weak CEO Character Scores Ranked Lowest to Highest

12 The Return on Character High-character leaders and their teams generate: ~5x greater ROA 26% higher workforce engagement Lower levels of risk Heather I was trying to use this Twitter ad image to create a better slide than the chair slide. I d like to have all three results --- ROA, WE and lower risk on one visual. For some reason, I can t copy the whole thing off Basecamp. It cuts off the book. Also, we need to take the HSBC logo off all ROC only slides. It should only be on the slides that are about our common work. 18% stronger leadership skills

13 Return on Character Value Chain x C H A R A C T E R W HO S K I L L S WHA T R E S U L T S Predispositions Reputation Character Habits Intent Vision & Strategic Focus Workforce Engagement Automatic Response Patterns (ARPs) Decision Making Accountability Return on Character Execution Readiness Life Experience s Team Leadership KRW International All rights reserved.

14 The Virtuoso Team Team Dynamics Purpose and Goals Roles and Responsibilities Rules and Procedures Trust and Relationships Confidence Integrity Responsibility Forgiveness Compassion Team Character Reputation Team Skills Vision Accountability Collaboration Innovation Communication Decision Making Respect Procedural Fairness Care and Support Organizational Energy Confidence in Management Workforce Engagement Conditions

15 Case Study: Mid-size non-profit providing community services $30M annual budget 176 FTE s

16 Behavioral Indicators of: Integrity Responsibility Forgiveness Compassion

17 The Challenge

18 Benchmark: How do we compare to a high-functioning senior team?

19 Return on Character Score The Senior Team demonstrates these behaviors: Executive Team Character Curve Always Virtuoso Senior Teams Frequently X Self-Focused Senior Teams Executive Team Overall Score 2015 (69) About half of the time 19

20 Discover: What are we doing that gets in our way?

21 I N T E G R I T Y R E S P O N S I B I L I T Y Telling the truth Acting consistently with principles, values, and beliefs (walking the talk) Standing up for what is right Keeping promises Leads to a Culture of Accountability I N T E G R I T Y Leads to a Confidence in Management Taking responsibility for personal choices Admitting mistakes and failures Embracing responsibility for serving others: leave the world a better place Letting go of one s mistakes Letting go of others mistakes Focusing on what s right versus what s wrong Leads to Innovation Leads to Collaboration Empathising with others Asking for help Empowering others Actively caring for others Commitment to others development F O R G I V E N E S S KRW International All rights reserved. C O M P A S S I O N

22 Overall Scores on Character Curve Always Frequently About half of the time 22

23 Elevate: What can we do to change?

24 Elevate: Team share of personal data Circle back to the workforce Advisory Group Ongoing team coaching support Individual coaching Strained relationship breakthrough

25 Return: What is our Return on Character?

26 Return on Character Score The Senior Team demonstrates these behaviors: Executive Team Character Curve Always Virtuoso Senior Teams Frequently X X Executive Team Overall Score 2016 (76) Self-Focused Senior Teams Executive Team Overall Score 2015 (69) 39% Improvement About half of the time 26

27 Overall Scores on Character Curve 2015 Compared to 2016 Always Frequently = +7% = +12% = +8% = +18% About half of the time 27

28 Percentage of High/Low Scores = High-Scoring Items (80 and over) = Moderate-Scoring Items = Low-Scoring Items (under 70) [1 Item] [3 Items] [12 Items] [8 Items] [7 Items] [11 Items] 28

29 Percentage of Positive/Negative Comments = Positive Comments = Negative Comments

30 % Turnover Turnover Percentage by Year (Est.)

31 Return on Character Score The CEO demonstrates these behaviors: Character Curve and ROA Always 9.35% ROA: % 4.83% Virtuoso CEOs X Frequently X ROA: (Est) 10.5% X Self-Focused CEOs 1.93% About half of the time ROA: % 31

32 Questions?

33 The Virtuoso Team Team Dynamics Purpose and Goals Roles and Responsibilities Rules and Procedures Trust and Relationships Confidence Integrity Responsibility Forgiveness Compassion Team Character Reputation Team Skills Vision Accountability Collaboration Innovation Communication Decision Making Respect Procedural Fairness Care and Support Organizational Energy Confidence in Management Workforce Engagement Conditions

34 Return on Character Value Chain x C H A R A C T E R W HO S K I L L S WHA T R E S U L T S Predispositions Reputation Character Habits Intent Vision & Strategic Focus Workforce Engagement Automatic Response Patterns (ARPs) Decision Making Accountability Return on Character Execution Readiness Life Experience s Team Leadership KRW International All rights reserved.

35 Results % 9% 8% ~5x multiplier 9.35% Δ = +18% 78 Δ = +26% 80 7% 6% 5% 70 4% % 2% 1% 1.93% 50 Skills = Self-Focused ratings Workforce Engagement 0% Return on Assets = Virtuoso ratings

36 Return on Character Value Chain x C H A R A C T E R W HO S K I L L S WHA T R E S U L T S Predispositions Reputation Character Habits Intent Vision & Strategic Focus Workforce Engagement Automatic Response Patterns (ARPs) Decision Making Accountability Return on Character Execution Readiness Life Experience s Team Leadership KRW International All rights reserved.

37 ROC Value Equation Predispositions Life Experience Character Habits Integrity Responsibility Forgiveness Compassion WHO the Leader Is Character Skills Results Clarity of Vision Strategic Focus Accountability Decision Making Communication Team Leadership WHAT the Leader Does HOW the Leader Impacts Results Progress on Goals Return on Character KRW International All rights reserved.

38 WHAT the Leader Does Δ = +30% Δ = +19% 81 Δ = +19% Δ = +14% Δ = +21% Δ = +30% Vision Innovation Collaboration Communication Safety Confidence in Mgmt = Self-Focused Ratings = Virtuoso Ratings

39 Return on Character Value Chain x C H A R A C T E R W HO S K I L L S WHA T R E S U L T S Predispositions Reputation Character Habits Intent Vision & Strategic Focus Workforce Engagement Automatic Response Patterns (ARPs) Decision Making Accountability Return on Character Execution Readiness Life Experience s Team Leadership KRW International All rights reserved.

40 WHO the Leader Is LIFE EXPERIENCES Success A Leadership Role Failures/Mistakes Mentors Jobs Mental Complexity Integrated Human Genetic Givens Hardware Slow Brain Fast Brain Software Intuitions, Drives, Personality Education Worldview Influential Adults Self-Awareness Parents Moral habits KRW KRW International Research Institute All rights All reserved. rights reserved.

41 The Inner Journey Success A Leadership Role Failures/Mistakes Mental Complexity Integrated Human Genetic Givens Life Story Inner Journey Hardware Slow Brain Fast Brain Software Intuitions, Drives, Personality Self-Awareness Character Habits KRW KRW International Research Institute All rights All reserved. rights reserved.

42 THREE PARTS TO THE INNER JOURNEY Improving self-awareness Creating a coherent life story Increasing your level of mental complexity

43 Self-Awareness: Incredibly, 2 out of 3 senior leaders do not accurately self-assess their reputation 43

44 Virtuoso CEOs Self-Focused CEOs Virtuoso CEOs Self-Focused CEOs Character Score Ratings on Strength of Character Always 100 Habits Almost Always Frequently 75 Slightly more than half of the time 68 About half of the time 50 Self-Rating Employee Rating 44

45 The Character Curve Strong 100 Virtuoso CEOs 75 Self-Focused CEOs Weak 50 CEO Research Subjects N = 84 = Virtuoso CEO Self-Ratings = Self-Focused CEO Self-Ratings

46 SELF AWARENESS How aware are you of your character reputation?

47 Inner Journey Work Increasing self-awareness (what s your real reputation?) Creating your coherent life story Raising your level of mental complexity

48 YOUR LIFE STORY Is it coherent? Does it make sense to you? Have you considered how earlier experiences impact your leadership today?

49 River of Life Exercise

50 River of Life Exercise minutes Draw a river to represent your life with birth at the bottom and present moment at the top. On one side draw tributaries that illustrate moments of pride, triumph, accomplishment, excitement and joy. On the other side, draw tributaries that illustrate moments of failure, difficulty, worry, grief and sadness. Draw circles near the river of people you have known have influenced your life. Draw bridges, rocks and any other symbol that illustrate the ups and downs in your life.

51 Inner Journey Work Increasing self-awareness (what s your real reputation?) Creating your coherent life story Raising your level of mental complexity

52 MENTAL COMPLEXITY Do you have a mindset of curiosity? How often do you question your truths? Do you know what your biases are?

53 Return on Character Value Chain x C H A R A C T E R W HO S K I L L S WHA T R E S U L T S Predispositions Reputation Character Habits Intent Vision & Strategic Focus Workforce Engagement Automatic Response Patterns (ARPs) Decision Making Accountability Return on Character Execution Readiness Life Experience s Team Leadership KRW International All rights reserved.