Ken Vaughan – Page 21 – New Horizon Partners

What Is Character?

Character is the most important ingredient of leadership. I often use the analogy of a structure in describing leadership where character is the foundation. Without a strong foundation of character our leadership can be weak. We often describe leadership as the combination of character and competency. Without strong, positive character our competency can seem like a rudderless boat adrift.

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While character is a frequent focus of the discussion about leadership, there is no consensus on exactly how we should define it. Some definitions of character are quite broad while others are more narrow. All of the definitions refer to the inner values and behaviors that guide the way we think and operate. John Wooden said “The true test of a man’s character is what he does when no one is watching.” Character is sometimes described as the sum of virtues, values and traits.

Here are some dictionary definitions of character:

the way someone thinks, feels, and behaves – from Merriam-Webster’s Dictionary
the mental and moral qualities distinctive to an individual – from the Oxford Dictionary
the particular combination of things about a person or place, esp. things you cannot see, that make that person or place different from others – from the Cambridge Dictionary
the complex of mental and ethical traits marking a person – from Webster’s English Dictionary

The broader definitions of character often fold together character traits and emotional intelligence behaviors. Daniel Goleman’s writings on EQ often do so. Drs. Henry Cloud and John Townsend define character as “that set of capacities the leader needs to meet the demands of reality. A person of character is one who connects well; is clear in her responsibilities; can handle problems and negative realities; and understands her role and mission.” A similar definition of character is “the stable and distinctive qualities built into an individual’s life which determine his or her response regardless of circumstances.”

Character is the guiding light for how we engage with those around us, with whom we choose to interact, the quality of our relationships, the way that we make decisions, the priorities that we set, what we value, the tradeoffs we are willing to make, etc. Character affects everything we do and say. Our character determines whether those around us accept our leadership or influence. Our character is the basis of our leadership.

How would you describe character?
How would you describe your own character?

“Crucial Conversations” by Patterson, Grenny, McMillan, and Switzer

If you work or live with or near other people you probably have occasions when crucial conversations need to take place. A crucial conversation is defined as a discussion between two or more people where stakes are high, opinions vary, and emotions run strong. These conversations, if handled well, can deepen a relationship. If handled poorly, they can damage a relationship. The difficulty is that, since these conversations are full of emotion, they can easily spiral out of control. Or the fear of them spiraling out of control can prevent them from ever happening, even though they are often necessary for resolving an issue or building a relationship.

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“Crucial Conversations: Tools for Talking When Stakes Are High” by Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzer is a popular book on communication in challenging circumstances. The authors point out that there are three choices when we face crucial conversations:

We can avoid them.
We can face them and handle them poorly.
We can face them and handle them well.

Too often the result is one of the first two outcomes, not because that is our choice but because people often don’t have the tools to handle these conversations well. The book presents a process for achieving a positive outcome based on research that the authors conducted, examining the practices of people who were able to handle crucial conversation extremely well.

The book begins with an explanation of why crucial conversations can easily spiral out of control. When stakes are high and emotions begin to rise, there are natural responses built into our bodies. Adrenaline rises, blood flow is altered, muscles tense, etc. These are all part of the natural fight or flight responses that are built into our physical system as a matter of survival. These responses begin when we face tense situations, often beginning even before we realize that the situation could present challenges.

In order to understand the recommended process for handling crucial conversations, we need a little background in neuroscience. There are two major areas of brain activity relevant for our discussion. The prefrontal cortex is the area where we store and process facts and information, identifying relationships between facts, and developing logical conclusions. The other major part of the brain is the limbic system which is composed of various brain structures where various reflexive or reactive brain activities take place. The fight or flight response and other emotional responses come from the limbic system.

The tools defined in this book, “Crucial Conversations”, are all focused on engaging the prefrontal cortex and keeping the limbic system quiet during such a conversation. By keeping the conversation logical and safe for all parties, the parties can more clearly communicate. If we stray into a highly emotional discussion, the limbic system can highjack the conversation and prevent the logical input that we would desire from the prefrontal cortex. The book outlines seven steps to a positive crucial conversation, as follows, all aimed at keeping the conversation in the prefrontal cortex and out of the limbic system:

Start with Heart – This step is aimed at understanding the desires of the various participants by asking, “What do I really want for myself, for others, for the relationship?” The other component here is refuting what the authors call the Fool’s Choice of thinking that the only choices are silence or an emotional discussion with a bad outcome, by identifying what would be the best outcome.
Learn to Look – This step is focused on maintaining safety for all involved so that we keep the conversation in the prefrontal cortex and away from the limbic system. The participants watch for signs of stress in themselves and others and bring all parties back to safety rather than moving toward fight or flight or what the book calls silence or violence.
Make It Safe – This step provides tools for bringing the dialogue back to safety including apologize, contrast to explain, and getting back to the mutual purpose.
Master My Stories – Part of the reason that crucial conversations go bad is that people imagine stories behind others’ actions. This step asks what might be a logical explanation rather than inferring the worst.
State My Path – Using a concept of path to action, this step Shares facts, Tells story, Asks for others’ paths, Talks tentatively, and Encourages testing.
Explore Others’ Paths – Using some strong communication tools, this step seeks to understand the others’ view. The book uses Ask to seek out, Mirror emotions to show safety, Paraphrase to show understanding, and Prime to get the information flowing. Then to build common ground use Agree, Build, and Compare.
Move to Action – The last step is designed to ensure that the issue is settled by defining a decision process and timeline.

“Crucial Conversations” presents a process that can be used in the workplace (with superiors, co-workers, or subordinates), in family relationships, or in any other circumstances that fit the definition of a dialogue where stakes are high, opinions vary, and emotions run strong. Rather than let an emotional dialogue damage a relationship, we can learn to conduct a crucial conversation in a way that produces a positive outcome. I thought this book was quite good and would give it a 9 out of 10.

Character Beats IQ 53-5 in Thrilling Leadership Bowl

OK, it is the middle of November and as the college football season moves towards the playoffs it gets more interesting, so I couldn’t resist the playful title. But there is a real point to this article. It is that leadership is more dependent upon character than it is on cognitive ability (what we know as IQ).

In an article that I wrote recently on the relationship between IQ and leadership, I made the case that intelligence was helpful to being a good leader but was not the most critical factor. Our IQ enables us to see opportunities for growth and to take the steps to develop our leadership, but leadership is built first on a foundation of character and emotional intelligence. Our IQ enables us to use our character and EQ for the greatest effect. But when someone has a strong IQ without the base of character and EQ, that strong IQ can be a detriment to building the types of relationships in which we are able to effectively influence those around us. We are no doubt all familiar with highly intelligent people who can be obnoxious because they are weak in certain character traits and cannot relate to people effectively, therefore rather than building relationship they instead intimidate or disdain those who they do not regard as equals.

In a recent article in HBR by Tomas Chamorro-Premuzic scientific evidence is provided to corroborate this view. The article states that people who have the character traits of being “more adjusted, sociable, ambitious, and curious are much more likely to become leaders. (53% of the variability in leadership emergence is explained by these personality factors.)” Of course, “higher levels of cognitive ability (IQ) also increase an individual’s likelihood to emerge as a leader, though by less than 5%.” The article goes on to describe how positive character traits and strong emotional intelligence enable a leader to be more effective. Much of this HBR article is based on a meta-analysis of correlations between personality or character traits and leadership.

There are those who would argue that an intelligent person can fake it. But people look for authenticity and transparency in leaders before they are willing to trust. And people must first trust before they are ready to accept the influence of a leader.

What is your experience regarding the relative importance of character versus leadership?

Middling Leaders Give Answers, Good Leaders Ask Questions

When someone on our team brings us as leader a question, often the best response is “What do you think?” Some people think that asking questions shows weakness. Some leaders do not have the ability to say “I don’t know.” Or they might think that the leader is expected to always know best. Even when we do know, asking a question might be the better choice.

Some of the advantages of asking questions:

Values the thoughts and input of those around us.
Builds the individual.
Builds the team.
Coaching opportunity.
Demonstrates humility.
Helps others develop their thought process.
Gets buy-in.
Multiple perspectives give better results.
Provides an opportunity to evaluate potential.

When we are quick to give answers we might:

Disempower those around us.
Elevate ourselves over the team.
Build dependency.
Lead to possible tunnel vision.
Not get the best answer.
Miss great opportunities to help others grow.

Now this doesn’t mean we never give answers, or that we should simply accept the answers that our people give us. As leaders we are responsible for the organization making good decisions, so we may need to guide people through a thought process or we may need to overrule the input of others if we are convinced that we have the better solution. But the opportunity to build the organization for the long-term is often just as or even more important than an immediate answer.

What do you see as the benefits of asking questions? Or the risks of providing quick answers? Are you comfortable not being the “guru on the mountaintop”?

The Purpose of Business Strategy

The purpose of business strategy is to define how the organization should allocate resources in order to meet its goals and objectives and move toward its vision. Business strategy describes where and how the organization competes. This strategy is set in the context of customer needs, core competencies of the company, and the value offering relative to that of the competitors.

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When I think of strategy, I focus on for-profit businesses because that is my experience and my audience for consulting. These same concepts apply to other types of organizations with some minor translation.

The primary goal of a business is to achieve a return on investment for those providing resources to the business. In the long run that return is a function of the value that they offer to customers compared to the perception of value of the offering in the eyes of customers.

Businesses provide some combination of goods and service to their prospective customers. This combination of goods and services is their value offering. Customers make choices about the value of each prospective supplier’s offering based on the customer’s needs. What level and array of service has value and how much? What features and benefits of products has value and how much? There are generally an array of prospective customers with varying needs and an array of potential suppliers with varying value offerings.

The ability of the organization to generate profits is a function of identifying customers with needs that match the organization’s ability to supply a value offering that is either produced more economically or a value offering that has unique value attributes (or some combination) compared to competitors. It is easy to see the extreme examples. Customers who buy sand often want the least expensive sand whereas customers who buy rocket engines probably have a unique set of desired features and benefits.

Organizations have a variety of capabilities to supply their package of goods and services. When certain of these capabilities are able to provide unique value to customers, we call this capability a core competency. Core competency might be proprietary technology that allows a unique design or manufacturing process resulting in some superior value to certain customers. It might be unique knowledge of a market or a customer’s needs. It might be unique access to lower-cost resources. It might be anything that differentiates us and adds value for the customer.

The purpose of strategy is to identify where and how to compete and to guide the allocation of resources. (For another interesting perspective of how strategy should allocate resources see this article in HBR by Michael D. Watkins.) Strategy identifies core competencies the organization is building that will enhance its value offering, the how to compete. Strategy identifies the types of customers that will most highly value the offering, the where to compete. Where to compete might include definition of region, demographics, end applications, specific names of customers, or many other attributes.

The strategy statement then should be a clear and concise statement of this where and how to compete. The organization should be able to look to the strategy statement in the midst of every decision and answer the question, “does this decision support and build our strategy?” The action plan is a natural outflow as we attempt to implement the strategy to build core competencies and achieve our objectives. These are all part of an overall strategic management system for the organization.

Every organization has a strategy, whether it is explicitly stated or implicit in the way that they operate, and whether it is well-defined or a murky mystery. How would you describe your organization’s strategy?

Tactics and Action Plan

The tactics and action plan describe the activities of the organization to implement the business strategy and achieve the strategic objectives. The action plan is the final piece of a strategic management system that translates mission and vision into goals and objectives which then drive business strategy which then unfolds into action plans.

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While the business strategy presents a long-term description of where and how the organization intends to compete, the tactics and action plan are focused on specific outcomes, the short-term time frame, and discrete steps. They describe the activity that will take place to further enhance the organization’s core competencies, build a sustainable competitive advantage, and deliver superior value to customers.

Tactics are programs, initiatives, and projects to implement the strategy, to incrementally change the organization in the direction of the vision, goals, and objectives. As such, tactics are at a higher level and are then composed of a variety of specific actions.

The action plan describes the specific tasks that will be performed in order to carry out the tactics, implement the strategy, and achieve the goals and objectives. These action plans need specific definition of the task, the responsible person, the completion date, and any resources required. These action plans are then constantly monitored to assure that the organization is progressing in the implementation of its strategy.

In a previous article we gave an example goal that might be “Develop a more capable and stable workforce.” One of the supporting objectives might then be “Reduce annual non-retirement turnover to less than 8% of the total workforce by January of 2020.” With this objective, a tactic might be a program to change the culture of the organization. One of the actions might then be to develop and roll out a comprehensive employee communication plan. The action plan will identify the responsible person, the resources required, and the milestone dates.

All organizations are constrained by limited resources – limited number of people, limited available funds, limited time, etc. The other purpose of the action plan is to prioritize the allocation of these resources towards the highest leverage activities. To achieve the organization’s objectives, we need to assure that we are investing our resources on the activities that will build value and generate the highest return.

Does your organization have a clear, effective strategy supported by a good action plan? What do you see as the biggest challenge regarding your action plan?

Transparency and Trust

Transparency and trust are inextricably linked in leadership – transparency on the part of the leader to warrant trust from the constituent. Trustworthiness is a critical character trait for those that want to lead. People only accept the leadership or influence of those that they trust. Research consistently shows that trust is one of the most highly demanded traits that people expect from a leader. And this is logical; as a matter of self-protection we are not likely to follow someone that we are not sure can be trusted.

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Stephen M. R. Covey describes 13 behaviors of leaders that build trust:

Talk Straight
Demonstrate Respect
Create Transparency
Right Wrongs
Show Loyalty
Deliver Results
Get Better
Confront Reality
Clarify Expectation
Practice Accountability
Listen First
Keep Commitments
Extend Trust

The most important behavior, it would seem, is transparency. In a recent article on Leadership and Character I wrote about the inner realm and the outer realm of character, that is, the character within us and the character that is apparent or demonstrated to constituents. People make decisions of trust based on what they see and experience. And if they sense that the inner realm and the outer realm are not congruent, they are not likely to trust.

Some of the components of leadership transparency include:

Communication – consistent communications so that constituents do not feel they are in the dark
Candor – open communications that includes the good news and the bad
Visibility – see and be seen, let them see you operate
Consistency – always the same so that they know what to expect, what is real
Explain decisions – no pronouncements from on high, show them the thought process
Admit mistakes – let them know that you are human and humble
Engagement – build relationships that extend beyond the day-to-day tasks

Of course, the assumption is that through transparency we show high quality character that can be trusted, traits such as integrity, passion, vision, etc.

Are you building relationships of trust? Are there other important elements of transparency?

Dealing with Discouragement

The natural response when we encounter someone that is facing discouragement is often to double down. It is a human tendency to back away from negative emotions. When we interact with discouragement, there are two common responses: the cheerleader or the fixer.

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The cheerleader says something like “You shouldn’t be discouraged. It’s not that bad.” And the discouraged person is now also discouraged by the feeling that their discouragement is a sign of weakness.
The fixer says something like “Have you tried……?” And the discouraged person is now also discouraged by the feeling that it should be easy to recover from their discouragement.

Why do we back away from negative feelings? First, there is a neuroscience explanation. The limbic system in our brain responds to negative feelings by telling us that we should flee, fight, or freeze because negative feelings could indicate danger. Add to this the fact that many people are raised in an environment where they are told “Don’t feel sad, don’t feel angry, don’t feel any negative emotion.” We learn to either run from or hide from negative emotions.

Negative emotions, while not as enjoyable, are as natural as positive emotions. All of us have occasions when we experience negative emotions. As a leader we need to learn to lean into negative emotions rather than flee from them. By doing so we can help our constituents deal with these negative emotions in an effective way. To deal with discouragement or disappointment, we first need to validate that those feelings are real and rational. People must effectively process the negative emotion before they are able to move on to recovery.

If someone has failed, had a loss, or just feels that they are not where they had hoped to be, we can often help them best by accepting or validating those feelings. We do that best by accepting their discouragement or allowing them to vent. We can also validate their feelings by identifying with them, relating a short story of our own similar discouragement. Another way to validate is to express empathy, to feel discouragement along with them. (For a helpful explanation of empathy and how it differs from sympathy, see Brené Brown’s video.) Often the best course when we encounter someone that is discouraged or disappointed is to simply ask “What do you need from me?” If they are looking for a cheerleader or a fixer, we can go there. If they are still processing their negative emotions, we may be able to help them do so more effectively by validating them. Sharing our feelings with others is an effective way of processing them.

And the same should hold true for us as leaders. When we have our own disappointments or discouragement, we should ask the safe people around us for the validation that we need to deal effectively with our own negative emotions. “I’m feeling discouraged by ____ and here is what I really need right now.”

Are you able to lean into negative emotions? What are you doing to develop this capacity?

12 Practical Descriptors for Business Strategy

Business strategy is the linchpin between vision and action plans. With a good statement of strategy organizations are on the fast track to success. Without a good statement of strategy organizations can feel like they’re wandering in the desert. Some time ago we described a strategic management system that led from mission and vision through goals and objectives to strategy and on to tactics and action plans. Strategy is the critical element that bridges from what the organization hopes to be to the actions that will get it there.

Business strategy describes where and how the organization will compete. A good statement of strategy looks like the following: “We are an injection molder of large, flat parts for high-quality applications such as medical or business equipment where customers need short runs and quick turnaround of orders.”

Here are some descriptors of business strategy:

First of all, a business strategy is a statement. It is not be a document or a book. It may be part of a strategic planning document. It may result from a strategic planning process. But a business strategy is simply a statement of where and how to compete.
The best strategies are concise, stated in one sentence. Certainly a strategy shouldn’t be more than a short paragraph, perhaps three sentences.
A strategy statement is an internal communication tool to align the organization and its activities with the vision and objectives. It assures that we are all working towards the same objectives in the same way.
Strategy is built on a knowledge of markets, customers, and their needs. It describes the unique value that we offer to customers based on this knowledge of their needs.
A strategy statement is a confidential communication about our competitive position. Strategy describes how we intend to differentiate our organization and its value offering from that of competitors. To broadcast the strategy outside of the organization and its strategic partners would open the door for competitors to gain the same knowledge and follow the same path.
Strategy describes the core competencies the organization intends to exploit to provide superior value to your customers. In our example we can see that core competencies might be capabilities for high-quality manufacturing, efficient production of low volumes, and the ability to quickly respond to orders.
Strategy defines a path to a sustainable competitive advantage. A core competency should be more than “just as good” as the competition.
Strategy guides decisions and our allocation of resources. Will hiring this person or investing in this piece of equipment enable us to enhance the core competencies that set us apart from competitors?
Strategy enables prioritizing our business opportunities. It describes our target market or target customers. Who are the customers that will most value the products or services that we’re offering? Every potential business opportunity can be vetted by the strategy. This might not mean bypassing every opportunity that doesn’t exactly match the ideal, but it enables us prioritize various business opportunities and focus our efforts on business that will be most profitable.
Strategy is the driver for all tactics and action plans. The action plans are simply the implementation of the strategy. Any action that does not support the strategy is wasted energy.
And finally, a business strategy must be realistic, not a pipe dream. The strategy should challenge the organization to a higher level of performance but not represent an impossibility.

What other descriptors would you have for a good business strategy?
Does your organization have a clear, concise statement that defines your business strategy?
Is it guiding your decisions and likely to take you towards your vision?

Invitation to a Taste of TLP

Effective leadership is built upon competency and character. The Townsend Leadership Program (TLP) has been proven successful as a cohort leadership program that results in both personal and leadership growth. Ken Vaughan, through New Horizon Partners, is now offering TLP in both Cleveland and Columbus. If you (or someone you know) could increase your effectiveness through some resources and the small group experience, join us to learn more about TLP and how effective character-based leadership is developed.

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On October 18^th we will host two introductory events to demonstrate the value of the Townsend Leadership Program. There will be a continental breakfast and presentation from 7-8:30AM and an after-work event from 5:30-7:00PM with appetizers and presentation. The 30-minute presentation (at 7:15AM and at 6:00PM) will include teaching from Dr. John Townsend (via video), a short talk on character-based leadership by Ken Vaughan, and a description of the Townsend Leadership Program. Following the presentation there will be an opportunity for Q&A and further discussion. Both events will take place at the Holiday Inn on Rockside Road, 6001 Rockside Rd, Independence, OH 44131.

To attend either of these events and learn more about TLP, please RSVP by email to rsvp1@newhorizonpartners.com or phone (440-248-9814).